Appraisers Adjusting for Declining Market Conditions. Is it true?

Poinciana regression chart

 

Hi folks. I wrote a post over two years ago titled “Let the Games Begin”. In this post I was pointing out that Poinciana was beginning to be a declining market and that Appraisers were making downward adjustments for this. It created quite the stir.

For whatever reason there were many who commented that felt this was not happening and would never happen. Well…..it was and it is.

I reviewed an appraisal today where the appraiser made a downward adjustment of $150 PER DAY on the recent sales.

Downward adjustment

Just to give you an idea of how this works. One of the sold comparables that was used closed in November. The adjustment was -$20,000!! The same house had a pool and it was adjusted -$8,000.

So what do you think about that? $8,000 for not having a pool and a whooping $20,000 for being a 5 month old sale. Have you seen this in your market yet?

****The chart and data in this post was provided by Richard D Ferris  Florida State Certified (FHA) Appraiser

 

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