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Declining Markets?

For the past 6 months each appraisal that leaves the office includes a new graph indicating if there is a Flat, Declining, or Increase in neighborhood values.

This graph assists the reader to understand what has happened over the past 12 months in the subject neighborhood. If there are declining values a search back two to four years is made to better understand when the declines started and by how much.

We are also including Absorption rates in the body of the appraisal. When values were increasing and inventory was in short supply it was easy to check a box on the appraisal report. Now in is important to find out how long it will take to sell the entire inventory if no new homes were actively listed.

These are some of the key indicators appraisal reports should include to accurately define the current market conditions.