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David A. Braun, MAI, SRA has created this fun Excel application to help appraisers get a handle on their gas costs and how much they have increased. Download gas_omonitor.xls
David A. Braun, MAI, SRA (President, Braun & Associates, Inc.) has been actively engaged in real estate appraisal, review, and consulting since 1976. In this period, assignments have been performed throughout East Tennessee for numerous clients - Phone - 865/977-4404
ScoopGear.com is not only a marketplace but a community blog where appraisers and vendors can share tips and tricks. Today, Jim Westman of Centennial Appraisal Group, Inc., shares his Real World example of market trend analysis.
Like many of you, I recently received my Nuts and Bolts of Spreadsheets and Graphs DVD set from Anthony Young and I was anxious to put it to work!
There are a couple of subdivisions in Breckenridge, CO with deed-restricted units (limited appreciation) and residents must work in Breckenridge at least 30 hours a week. Both Vista Point and Wellington subdivisions began at the same time and are adjoining.
My subject is a deed-restricted unit and I included three deed-restricted units in the appraisal report. Comps four and five were fee simple market units. By paring comparables four and five with one, two, and three I thought the adjustment looked like it was about a 20% difference. But I wanted some concrete support.
To graph the differences between deed-restricted units and free market units, I calcluated the price per square foot for all of the sales over a seven year period in Excel. Click image or here to enlarge.
The average price/sq. ft. of restricted vs. market units was $210/sf vs $253/sf. But, more intersting is that my market trend analysis supports the fact that this variance holds true over time!
Conclusion? Sure enough the market units were about 20% higher than the restricted units.
Are you looking for a convenient way to keep your laser measuring device accessible without fumbling for it in a bag or case? Here it is . . .the LaserReel!
I know that most of you have not seen or experienced this sort of method for carrying your laser measuring devices so I've put together a short video so that you can see a little more about how it works.
In upcoming videos I'll be showing the LaserReel, in action, out in the field! Meanwhile, I hope you'll use the "comments" feature of this blog to let me know what you think?!
Brian J. Davis
"How do you make market adjustments for items with contributory value? An excel spreadsheet can not come up with that formula. Mark"
Mark, I will respectfully disagree with you. I can with an excel sheet measure and study the buying behaviors of buyers in a specific market for a specific feature through time. I have been able to do it time and time again. I have been able to prove many assumptions right and others wrong.
(Only read on if you dare to hear the truth. [Anthony's climbing on his Soapbox] )
However, first, one must be able to segment the market properly to use this decorative style for adjustment.
Nothing can replace true appraisal skills. This is why as Patrick Egger points out. "Which chapter is Statistics located in the Appraisal of Real Estate?" It DOESN'T have a chapter, it is at the Back of the book as an appendix.
Why is this? Well, because, one must understand 50 years of proven technique before using statistics. Statistics mean nothing if the data-set or model is wrong. This is the biggest problem with everyone graphing these days.
With Respect, I must say we are spending more time on making the graph pretty and less time on market delineation. We cannot use any graph for adjustments if the data used is not relevant to the subjects market competition. I cannot use a quote for a Mercedes Benz transmission to figure out how much my Honda transmission will cost. Nevertheless, we are seeing it more and more.
My graphing heart cries out to all graphers and prospective graphers. Please spend more time segmenting your market for true competitive properties than you do picking which are the prettiest colors to graph. When I began this thing I call a "niche" now, I spent more time making the graph "POP" than I did segmenting my data and wow, when I woke up I have a better perspective today.
Please do not just show the graph of the Decline.
Click here to continue reading . . .
I received my copy of Anthony Young's DVD [ Nuts & Bolts of Spreadsheets and Graphs ] this week and ran it through the paces this weekend.
In Summation: EXCELLENT
The DVD consists of 2 disks comprising 5 chapters of graphing techniques and short-cuts.
Anthony does a great job with the presentation of the material. Nearly every step of the DVD will run methodically through a procedure and then he will go over the material a second time; thus one doesn’t have to continually rewind if things don’t quite sink in.
I have been graphing my market data for sometime now, however the information provided on the DVD set is amazing.
I only thought I knew how to graph in Excel; the material covered in the project is well worth the price.
The DVD set covers everything from basic functions in Excel to advanced techniques such as utilizing Pivot Tables. Even the advanced features such as the Pivot Table section can be easily mastered under the direction of his guidance on the video.
Honestly, after spending the better part of the weekend evenings going through the video, I think Mr. Young may have missed his calling. He may want to put his appraiser hat to the side and focus his efforts on this type of endeavor.
My understanding is he will have an advanced series after this project is completed and you can bet I will be one of the first in line.
For those who are considering this DVD, I highly recommend it.
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