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hello appraisers this is Brandon with
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spark for appraisers and I wanted to
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make this video to show you our new time
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adjustment feature so spark has already
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been able to help with market conditions
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AKA time adjustments for quite a while
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but we have a new version that we're
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releasing that allows you to make
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nonlinear time adjustments and what that
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I mean by that is the the current
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version of spark allows you to say I
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want to make for example a 1% per month
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upward adust adjustment or a 5% downward
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adjustment and it would make that
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adjustment to all comparables so they'd
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all have a consistent per month
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adjustment however a lot of times you're
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in markets where comps that sold N9
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months ago might need a downward
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adjustment but comps that sold 3 months
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ago might be stable or need an upward
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adjustment and so this new version
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allows you to U basically handle all of
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that and then it provides support for
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that in your actual appraisal report and
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in your work file Okay so before I get
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into everything I just want to make a
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quick note that I I tend to get long and
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wordy in these so um if that's the case
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and you don't want to watch the whole
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video then there should be time stamps
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below so you can go and find the part
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that you want to fast forward to and get
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to so you have to watch the whole thing
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okay so let's go ahead and get into it
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so what I've done here is I've loaded up
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a session in spark where I have five
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closed sales and I have a few pending
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and actives those don't matter for what
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we're talking about though and then in
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the market analysis I did load in a a
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competing data set and a neighborhood
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data set you can also load in a third
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data set as always um or you can only
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load in one data set if you want to and
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this new version will work with any
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combination of that okay so let's go
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ahead and show you how this works so
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when I hit export now what you used to
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see is there used to be an apply time
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adjustments button right here it was in
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the grid section and it only showed up
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if you had sales comparables loaded into
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spark it didn't matter if you had market
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analysis or not we removed it from there
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and put it down here with the Go Button
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because now because you can use the old
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version or the new version and the old
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version requires you to have comps the
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new version requires you to have at
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least a market analysis then we put it
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down here so you can use it either way
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if you only have comps if you have both
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or if you only have market conditions so
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let me go ahead and show you how it
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works though and um actually before I do
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though I just want to mention that you
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can see this button has a bright red
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border around it and it says no time
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adjustments applied right above it the
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reason we did that is we wanted to make
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it super clear to you before you
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actually send this into your report that
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you have or have not made time
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adjustments and the reason being that if
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I go in here and I'm going to like skip
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ahead a little bit but if I go in here
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choose time adjustments now it says
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adjustments applied the red border is
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gone and the little phrase here is gone
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so I know that when I hit go I'm going
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to have adjustments applied however if I
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hit go
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back and then hit export again it's red
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again and I have to go and reselect the
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trend or the time adjustment that I
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wanted applied um and the reason we did
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that which it may sound kind of lame
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that we did that we were doing that to
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kind of protect everybody from making a
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mistake and what I mean by that is if
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you hit go back after you've already
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selected your time adjustment or the
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time adjustment Trend if you make a
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change to any of the data for example if
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you remove an outlier if you change a
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sale price of a property if you
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completely change your data set which a
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lot of apprais do they'll be like oh
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shoot I uploaded the wrong competing
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properties data set going to go upload
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the new one then you would have your
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time adjustment selected already based
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on a trend line that is no longer what
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you thought it was and we wanted to kind
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of protect everybody from that happening
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so just because of that if you do hit go
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back to go do something you are going to
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have to reselect the trend but like I
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showed you before it's pretty easy you
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just click apply time adjustments and
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click it and that's all there is to it
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okay so now let's get into actually what
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this screen is so the first thing I want
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to show you is that you can still toggle
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to the old version so if you don't like
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what we're calling Advanced time
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adjustments you can click it switch back
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over to the Legacy version which is how
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spark Works before and you just type in
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your adjustment that you want to make
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and that it'll apply that percent per
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month adjustment to all Clos comparables
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okay but oh whoops didn't mean to do
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that but if I switch back to the
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advanced version that's what we're going
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to get into today this is the actual new
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feature okay so first thing is I mean
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take a second to read all of this um as
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you get in and use it it will help a
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little bit
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hopefully But first you see I have these
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three selections that I can make so by
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default this is going to show sale price
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that is what the default will be for all
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users I believe um I prefer price per
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square foot but you can use whichever
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one you prefer price per square foot and
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I'll just explain briefly the reason I
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like it is because in my particular
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Market GLA is reported fairly well by by
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agents in the list it's reported very
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well actually for the most part and we
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don't have basement in my area so I
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don't have to worry about whether agents
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are subtracting that out correctly and
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all that stuff so for me price per
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square foot is great because if I choose
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price per square foot and you can see
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the the charts change and the trend
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lines change when I do that if I choose
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price per square foot what that means is
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a trend that might have looked like
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maybe things were going up it might
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actually be that people are just in
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general are buying slightly larger homes
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and so prices are going up because
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people are buying bigger homes so if I
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remove square footage or GLA as a factor
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if I normalize for that then that means
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I'm getting a better idea of what the
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Market's actually doing um separate from
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people buying bigger or smaller homes
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okay so anyways that's my little uh
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statement there but again you just use
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whatever you think is best for your
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market and forget about what I said if
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if you want and then you can choose the
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time frame so if I want to go back
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really far then you can do that and see
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all the data there um you know 2 years a
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lot of appraisers use either 12 months
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or 24 months but we wanted to let you go
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back further um the reason we don't let
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you go back less than 12 months is
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because in F and Freddy's guidance that
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they released they did say minimum of 12
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months for this analysis so that's why
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we have 12 is the minimum there okay so
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I'm going to switch back to 12 which is
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what I had it at and then last you can
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choose between one of four trend lines
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linear which is you know as it is it's
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just a straight linear line it's not a
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fluctuating thing and that you have
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polinomial 2 3 and
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four and what best fit is is best fit is
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when I select that it chooses of those
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four trend lines which
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one has the least amount of gap between
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all of the properties and the trend line
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if you were to average all of that out
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the one that has the least amount of
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difference between the sales and the
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trend line that's the one that's the
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best fit um and that's basically what an
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R squ is for those of you that know um
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and so we choose that now that doesn't
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always necessarily mean that it's the
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right Trend that act that dead on
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matches what your Market is doing so
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that's why we give you the option to
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swap here if you decide you don't like
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it and then the other thing you can do
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is you can see all that same data on
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both of your data sets and you choose
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which one you think is best so I chose
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neighborhood there when I chose it you
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saw that the neighborhood chart moved
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over to the left competing chart went
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away and now I have a table of data
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where I can hover on those each
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comparable I have up five closed
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comparables here and see where they fall
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on that trend line so I can kind of
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visualize why it needs that downward
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adjustment that it's showing or upward
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adjustment or whatever so in this case I
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can see comp 3 contracted August 13th
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which is right around here and if I
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follow this trend line along to the
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effective date the effective date is
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down here and the comp is up here
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meaning it needs a downward adjustment
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to get to where Market conditions are as
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of the effective data of your appraisal
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so that's that now I can unselect it and
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say I don't want to use that one and
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then I can say you know what actually
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this one better fits my market by the
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way you can hover over view details
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before you select it and see that same
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table of data um but once you select it
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the other charts go away you see the
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table of data and you can hover to see
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the actual dots on there to hopefully
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help you better visualize why the time
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adjustment or market conditions
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adjustment applied is the correct one
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and this is actually a good example so
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you can see comp 2 for example it has an
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upward 3.5% adjustment it contracted in
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September and that is right around here
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September 25th so it does need an upward
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adjustment to get to the effective date
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but if we look down at these two comps
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four and five they contracted right in
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here at the hump right here where things
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started going down and so they need a
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downward adjustment to get to today's
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market conditions so that's why it works
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like that it just kind of we built that
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just to kind of help you visualize
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things okay so let's go ahead and move
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on down here you have you can apply time
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adjustments based on the contract date
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or the sale date and you see if I switch
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to sale date the dates here will update
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and you can also as I hover I can see
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the dots are actually in slightly
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different places because they're based
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on where the sale data is rather than
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the contract date contract date is the
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default but you can swi swap that if you
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don't like it and then you can also see
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that you have the option of subtracting
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concessions prior to calculating the
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adjustment so what we do and this is
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explained but we we basically calculate
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the percent adjustment based on this
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trend line but before we apply that
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percentage to the sale price if you
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check this box that means it's going to
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subtract out the concessions first and
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it's going to do that after your
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rounding setting so I have it set to
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round things to the nearest thousand so
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if there was a concession to one of my
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comps of let's say $11,400
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it would subtract out $111,000 because
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it would round to the nearest th it
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would subtract out $111,000 and it
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would do that to the sale price first
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then it would apply the percentage to
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that new updated price after subtracting
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concessions and then it would calculate
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that so so then in your report you would
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have both a concession adjustment and
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the market conditions AKA time
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adjustment loaded into your actual
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appraisal the report Now the default is
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off for this so if you don't like it
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there's really nothing you need to do it
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will not subtract that but if for those
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of you we have had a lot of appraisers
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asking us to do this for those of you
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that like that you can just have spark
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subtract out the concessions first and
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then apply the time adjustment and then
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of course you have your rounding setting
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you can choose how to round and then
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last regarding the actual agenda you can
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have us put that agenda in your report
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or not it is always going to go into
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your work file as long as you Cho
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selected a trend or a time adjustment to
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apply which is the trend then that
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document will go into your work file but
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if you check this box that means it'll
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go into your work file and it'll go into
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your actual appraisal report and this
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works no matter what form filler you use
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ACI apprais it pro click forms or total
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um I'm going to show you this in total
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at the end of the video here because
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that's the form filler I use and then
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the last thing is I see a little typo
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there um misspell but either way um the
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last thing here is
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include comment in aenda so basically we
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create a comment based on the selections
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you've made and we will load that into
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the agenda I know it looks kind of like
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long and everything here but um you in
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the actual agenda it'll look much nicer
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so I'll show you that before the video
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is over here um and so if you want that
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comment to go into the agenda then you
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turn this on if you don't and you just
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want the rest of the information to go
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in like the chart and the data then you
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turn it off and that's pretty much it
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okay so let's go ahead and load this
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into into an opais report and I'll show
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you what it looks like there I'm going
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to hit done here and then you would hit
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go and it'll do its thing and load it
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into your appraisal report I already
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have it thrown into the report for now
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so let's go ahead and load up my total
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report okay so here are my comps I told
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you I had five closed sales so here's
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comps one two and three and I did have
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that setting turned on to subtract out
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concessions just to show you how it
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works so I have concessions removed and
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I also have the market conditions
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adjustment applied for time and I can go
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to comps four and five and I can see
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those are the ones that had the negative
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adjustment for time and those also have
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concessions removed and then the other
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comps in here I think 6 S8 are not
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closed sales so those don't have it okay
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so now I also want to show you the
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agenda that we put in your report now
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the agenda is here here's that comment
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that I told you if you don't like it it
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can it'll remove these two paragraphs if
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you do like it it'll put them in the
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comment is dynamic based on your choices
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so if you decided to remove seller
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concessions it'll explain that in the
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comment and why um it'll explain your
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rounding and your effective date and
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then also if you made nonlinear time
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adjustments it'll explain why those were
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appropriate versus linear time
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adjustments so if you choose a linear
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adjustment this comment here will be
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quite a bit different and then down here
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below we have enough data on the comps
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so that you or the reader of your report
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can replicate the actual adjustment
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percent and let me just quickly show you
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what I mean by that so I'm going to pull
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up a calculator okay so let's just say
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we're doing comp 2 so comp 2 contracted
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September 25th and it's trend line price
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and the the adjustment percent is based
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on the trend line so um actually let's
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go take one step back so the actual if I
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follow this trend line here and get to
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the effective date which is right at the
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very end that number is
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$287 188 and we put that right here so
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you can see it right in the document
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that goes in your report Andor in your
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digital work file so it's 28788 that's
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right where the trend line ends that's
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the trend line price as of the effective
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date so I'm and one other thing to note
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is this little paragraph down here these
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this sentence or two this explains to
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the reader of your report and to you how
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to do the math it's just a brief little
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um couple lines that explains how to do
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it it's very simple and straightforward
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and it basically says you take the trend
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line price for each comp that's this
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number here and you subtract it from the
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trend line price as of the effective
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date so I do effective date Oops I did
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the wrong one
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28788 oh type in issues so I take the
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trend line price as of the effective
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date and I subtract the trend line price
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for the comp I'm looking at so if I'm
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looking at comp 2 that is 278.15
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I get 983 and then I divide that by the
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trend line price of the that same comp
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so I divide by the same number I just
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subtracted and that is my adjustment
00:15:09
percent 3.5 and you can see it says 3.5
00:15:12
so this is a way for you to be able to
00:15:13
go and replicate make sure you feel
00:15:14
comfortable with the math but also your
00:15:16
reader can go in and duplicate the math
00:15:18
and this comment will explain to them
00:15:19
how to do that if they wanted to um and
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let's see what else did I want to show
00:15:24
you oh and this document also goes into
00:15:27
your digital work file I wanted to point
00:15:29
out I don't know how this is coming
00:15:30
across in the video but the font may not
00:15:32
look super crisp and clear in your
00:15:34
actual form filler but when you print it
00:15:36
to PDF it should look really good so
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don't worry if this doesn't look super
00:15:40
great in your actual report but or in
00:15:42
your form filler but it should look good
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when you actually print it to PDF and
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send it to your client or in the XML um
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and then the other thing I wanted to
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note is if you did not include
00:15:54
comparables in spark and you just did
00:15:56
the market analysis and applied time
00:15:58
adjustments
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Trends based on the market analysis but
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you didn't have compson spark we still
00:16:03
give you something to help you out and
00:16:04
we can load that right into your report
00:16:06
and let me show you what that looks like
00:16:07
here so I know I'm taking a long time
00:16:10
I'm already at like 16 minutes here but
00:16:12
I'm going to show you so this is the
00:16:13
work file this is the page we were just
00:16:15
looking at but we also provide this and
00:16:18
this document we call it the monthly
00:16:20
market conditions adjustments document
00:16:22
will go into your report whether or not
00:16:25
you included comps so if you had comps
00:16:26
but you decide you prefer this agenda
00:16:28
more you can go ahead and take this out
00:16:30
of your work file put it in your report
00:16:31
if you want or if you have to add comps
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later on that you didn't have in spark
00:16:35
originally you can determine what the
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time adjustment for those comps would
00:16:38
have been and just include this document
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in your appraisal report as support for
00:16:42
that um okay so let me show you how this
00:16:44
works real quick um basically so if you
00:16:47
did not have comps spark still has this
00:16:50
trend line and it can apply time
00:16:52
adjustments but what it does is it does
00:16:53
it based on your effective date and the
00:16:55
months before your effective date so my
00:16:58
effective date for the appraisal was
00:16:59
October 2023 so it says okay one month
00:17:02
ago was September 2023 at that point
00:17:06
things needed a upward time adjustment
00:17:09
of 3.5% a month but if I go let's say
00:17:12
four months back to June and June would
00:17:16
be right around here then I would need a
00:17:19
downward adjustment of 1.5% per month
00:17:23
and so what you can do is if you're
00:17:25
using total you just go into the side
00:17:27
by-side view go to that line where you
00:17:30
have time in there and for the
00:17:32
adjustment you can just type intive 1.5
00:17:35
and total will automatically calculate
00:17:37
that to the right dollar amount and put
00:17:39
that in your report so that way you
00:17:42
don't have to do the manual calculations
00:17:44
yourself now if if you use other form
00:17:46
fillers and your form filler does not
00:17:48
automatically convert a percent to a
00:17:49
dollar amount you'll have to obviously
00:17:50
do that yourself and type in the dollar
00:17:52
amount there but you have this here as
00:17:54
information that goes into your report
00:17:56
so no matter when your property your
00:17:58
comp contracted whatever month it was
00:18:00
you can type in or calculate the correct
00:18:03
adjustment if you did not use um or have
00:18:06
those comps in your actual spark session
00:18:08
when you were using this um and then
00:18:10
last it you may have comps that sold
00:18:12
over a year ago so if in spark you
00:18:15
choose 24 months or more it will put the
00:18:19
12 to 24 months down here as well so if
00:18:22
you use anything over 12 months it will
00:18:24
actually put that extra data down here
00:18:27
up to 24 months old so um yeah I think
00:18:30
that's it I think I covered everything
00:18:32
and I hope you guys like it we will see
00:18:35
you in the next one
