SFREP - Knowledge Base

How does Appraise-It Classic calculate time adjustments?

Appraise-It has two modes of time calculation. By default, a simple growth formula is used. Older versions of Appraise-It used a compound growth formula.

You can switch to the compound growth formula by going to Edit ⇨ Preferences, clicking on Processing under Reports, checking the Use compound growth date of sale adjustment box, then clicking OK.

Both formulas use the same variables:

R = annual percentage rate
D = number of days between the effective date of report and the pending/contract date
P = comp sale price

The simple growth formula is D × (R / 365) × P. The compound growth formula is [(1 + (R / 365))^D - 1] × P.

1. With your report open in Appraise-It, go to Contents ⇨ Adjustments, or click the Adjustments icon on the toolbar.
2. Enter your Annual Percentage Rate in the Time adjustment field.
3. Check the Automatic box.

Automatic Adjustment Step 1

4. If desired, enter a threshold percentage in the Adjust? column.

If the calculated adjustment is less than the threshold percentage of the comp's sales price, the adjustment will not be applied.

5. Close the Adjustments Addendum and navigate to your report's Effective Date of Appraisal field, and enter the correct date.

Automatic Adjustment Step 2
6. Navigate to your sales or listings grid and enter your subject's Sales Price.
7. Enter your comp or listing's Sales Price and Date of Sale/Time.
8. An adjustment based on the selected formula will be inserted in the adjustment column.

In UAD reports, the adjustment is based on the contract date. Note that since FNMA only allows the month and year and not the exact date, the adjustment is calculated based on the first of that month.

Automatic Adjustment Step 3

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Last Updated
March 14, 2022