Blog
Issue #1 - Consistency of Data.
With the invention of forms, consistency in data has been dramatically improved. However, forms do not catch everything. Shown in the photo above is an example of how data in one section may not carry forward into another. The Yellow highlighting indicates the neighborhood is rural and under 25% developed. However, in the grid it shows the comps are all within .53 miles of the subject and located on a City Street.
The Red highlighting shows that in this neighborhood, property values are increasing with marketing times of under 3 months. To the reader, this indicates a strong, active market. The market conditions statement indicates the market has remain stable. If property values are increasing with marketing times of under 3 months, the reader would expect to see some type of an adjustment for sales occurring over 6 months ago. Yet, none are made. Another inconsistency would be the Days on Market of all three sales being over 3 months. While it is possible that these three sales may be the best, at minimum additional commentary would be required to be included in the addenda to support their inclusion, especially if these are the only sales considered. The main question I have as a reviewer is if the market is active and sales are occurring in under 3 months, why are all the DOM over 3 months.
Turning the map page we observe that all three sales are located within the city, indicating an urban or suburban location.
While the final value opinion may be accurate, these errors create doubt in the reviewers mind as to the whether the appraiser actually considered the trends in the market or if they understand how trends can affect value opinion. I would question if these three sales represent the best available and if adjustments should be applied for the date of sale. These creates doubt in my mind as to the overall accuracy of analysis and the final conclusion of value. Unfortunately, this error would require a revision.
Consistency errors are very common and can be easily remedied by having someone else in the office give the report a quick look over.