Page 9 - Regression Guideline

Gecng"your"data"ready"for" analysis"
Step&2:&CalculaDng&a&Dme&adjustment&
If"you"are"using"a"straight"line"slope,"you"could"be"off"on"you"Jme"adjustment."Here’s"why:"
Fannie&Mae&Time&adjustment& guidelines&
& Date&of&Sale&and&Time& Adjustments"
"The"date"of"sale"and"the"Jme" adjustment"(market"condiJons)"are" criJcal"elements"in"determining"an" accurate"value"because"the" appraisal"is"based"on"a"specific"date" in"Jme"(effecJve"date"of"appraisal)." The"comparable"sales"being" considered"must"be"analyzed"by"the" appraiser"to"determine"if"there" have"been"any"changes"in"market" condiJons"from"the"Jme"the" comparable"went"under"contract"to" the"effecJve"date"of"the"appraisal." This"analysis"will"determine" whether"a"Jme"adjustment"is" warranted."Adjustments&may&be& either&posiDve&or&negaDve& depending&on&the&market&changes& over&the&Dme&period&analyzed.&&&
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hsps://www.fanniemae.com/ content/guide/selling/ b4/1.3/09.html"
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This"graph"represents"the"average"sales"price"of"comparables"over"a" minimum"12Pmonth"period."The"analysis"is"based"on"data"entered." This"Jme"adjustment"is"representaJve"of"the"comparable"sales"in"the" subject"market"area." The"data"submised"is"analyzed"for"a"Jme"adjustment."A"straJficaJon" of"the"data"is"conducted."StraJficaJon"is"the"process"of"dividing"the" market"data"into"a"more"comparable"subset"(i.e."style,"age,"gross" living"area"1200P1600,"StraJficaJon"to"lot"size"etc.)."StraJficaJon"can" make"market"data"more"focused"and"ulJmately"more"comparable"to" the"subject."This"type"of"analysis"removes"larger"homes,"homes"on"a" significantly"larger"lot"size,"or"outliers"that"may"skew"the"findings."
Q;&How&can&there&be&a&negaDve&Dme&adjustment&when&the&market& shows&a&7.5%&increase&over&the&last&year?&
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A;&The&blue&line&shows&that&the&market&has&increased&7.5%&since& 02/2014&to&01/2015.&however&the&brown&line&shows&each&month& has&changed&at&a&different&rate&and/or&in&a&different&direcDon&when& compared&to&01/2015.&In&this&case&there&are&both&posiDve&and& negaDve&Dme&adjustments&depending&on&the&point&in&Dme.&
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