This is a good analysis from FHA on the lack of time adjustments by appraisers. I see so many reports that don’t make adjustments despite it being pretty obvious based on the adjusted sales prices.
As an example, Comps 1 and 2 are very recent sales and adjust out to $400,000 and $403,000. Comps 3 and 4, both the same floorplan as 1 and 2 but sold 6 months ago, adjusts out to $388,000 and 390,000. Yet no adjustments???
I remember asking multiple appraisers in my area back in 2020 and 2021 why they weren’t making any upward adjustments to older sales (and more recently why they aren’t making downward adjustments as sales prices retreat), and it’s pretty obvious they either don’t know how to properly analyze it, just don’t want to do the work required, or have memories of the old days when underwriters theoretically didn’t want to see them (I remember hearing that when I started 20 years ago.)
Bottom line, appraisers are responsible for identifying factors that influence the market value, and time is certainly one of them…
https://www.fhfa.gov/Media/Blog/Pages/Underutilization-of-Appraisal-Time-Adjustments.aspx
