|Posted on November 13, 2017 at 11:10 AM|
It recently came to my attention how different analysis is for my market area as compared to a highly populated condensed suburbia.
A fellow appraiser and I met for lunch to discuss methods, techniques and analysis, and it became apparent how different our methods used were, simply based on the data we could gather. His was so much easier because the market area is Temecula and Murrieta where there is so much more relevant data, that doing a grouped analysis in determining adjustments was fairly straight forward. Whereas my market area is almost a rural residential area, where the properties vary widely in view, quality, lot size, etc, so a grouped analysis does not make sense. My preferred method is paired sales when in the Fallbrook and Bonsall areas. This is part of the work of an appraiser: to analyze what methods are the most reflective of the market segment and market area that we are dealing with, to come up with adjustments that make the most sense, and which aren't reflective of the market segment, and then come to a final opinion of value based on this analysis.
In my opinion this is why a purely computer generated appraisal (with no human interaction) is not going to work for our future, especially with a more rural and complex market area.