Underappraisal and Time Adjustments to Comparable Sales Prices in Mortgage Appraisals

Working Paper


By Scott Susin and William M. Doerner

Using a confidential nationwide dataset, we document that time adjustments typically occur in only 10% of cases and are often too small to reflect market trends. These shortfalls result in anomalous seasonal underappraisal patterns, and account for roughly half of valuation gaps across neighborhoods.

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