Comments on: The Realities of Regression

By: Tom D

Tom D — Fri, 28 Aug 2015 13:06:01 +0000

the regression zombies are back again after destroying the “line of credit” market valuations. regression works very well if your subject is in the middle of the bell curve, and surrounded by identical homes in an identical market. however, regression will outlive us all, it’s where they want to go. sorta like the land of oz. does anyone want their children to be in this “profession”.

By: BC

BC — Fri, 28 Aug 2015 00:43:41 +0000

Good luck getting this right, when residential real estate purchases are typically driven by emotion (My wife really likes this home and I want to make her happy) vs Commercial real estate which is strictly numbers driven with emotion taken out of the equation. Have fun trying to quantify the human emotional element in residential appraising!

By: Koma

Koma — Thu, 27 Aug 2015 23:06:38 +0000

In reply to Eric.

Eric THANK YOU! Can you say that a little louder for the egg heads at the top! The day a computer tries to appraise anything is the day that’s worse than the 1929 crash.

By: bubba jay

bubba jay — Thu, 27 Aug 2015 16:14:00 +0000

i agree with everything that has been said above.

like KK said, if we are expected to provide accurate appraisals, we need accurate data. we dont see every comp we use, therefore we have to rely on the information we get from the realtors, AND, (taking this a step further), we also have to rely on the information we get from the assessors offices. until the realtors and the assessment offices are held to the same high standards we are, we will continue to get mostly incomplete and unreliable information, and every appraisal will be continue to be questionable. we again are in a catch 22, because we cant get the accurate information we need, but we open ourselves up to liability because we cant get the information we need. nice.

i have an idea? instead of wasting our time tweaking USCRAP to another insane level again, how doing something really productive like writing and enforcing rules and regulations that would hold realtors and assessors accountable for being lazy and not doing their jobs?

Like Eric and the article already says, RA doesnt work because rarely do i have a property in my area that isnt unique. appraising isnt like torquing a lug nut. appraising will never be an exact science, and we need to stop trying to turn it into one.

the bleeding continues . . . . .

By: Eric

Eric — Thu, 27 Aug 2015 15:05:59 +0000

I can almost guarantee you with virtual certainty that the foreclosure rate will decline by maybe a microscopic percentage if every appraiser did RA. They are trying to turn an art into a science, and they can’t.

By: Kimberly Keller on Facebook

Kimberly Keller on Facebook — Thu, 27 Aug 2015 13:54:27 +0000

The problem with RA is junk in and junk out. In my opinion until real estate agents are held to the same standards as appraisers and are required to enter everything accurately and similarly to each other across the grid, it will be mostly junk in. If Fannie Mae decided to hand the accurate date over to appraisers for our own use (since it is all appraiser verified) that they are using, it would be much easier and much more reliable. I am only talking about the data, not the review program. Ask appraisers across the nation what some of their biggest hurdles are? Typically, after finding comparables, it is verifying comparable information. This task is more difficult for some then others, but it is often like pulling teeth. Often the information provided in MLS is inaccurate or lacking.