Orange County NC Website
Browse       Search
APPROVED 5/10/2010 <br /> <br />OC Board of Adjustment – 3/8/2010 Page 52 of 86 <br />1 2 3 <br />4 <br />5 6 7 <br />8 <br />9 10 11 <br />12 <br />13 14 15 <br />16 <br />17 18 19 <br />20 <br />21 22 23 <br />24 <br />25 26 <br />27 <br />28 <br />29 30 <br />31 <br />32 <br />33 34 <br />35 <br />36 <br />37 38 <br />39 <br />40 <br />41 42 <br />43 <br />44 <br />45 46 <br />47 <br />48 <br />49 50 <br />51 <br />52 <br />53 54 <br /> <br />Vic Knight: The data is what it is. That is one reason you try to incorporate as large a set of data as you can that when you <br />look at all the factors and on an individual basis this certainly could be significant on any one sale. If you look at a large <br />enough set of data, that set of data should give you some information. <br /> <br />Jeffrey Schmitt: Let’s go back to Dr. Brezina’s question. Is there a standard methodology that you or your contemporaries or <br />peers employing in doing studies like this? <br /> <br />Vic Knight: No sir. I wouldn’t say there is a standard. There are many different methods by which people analysis data. <br />You choose one and try to be consistent about that. <br /> <br />Jeffrey Schmitt: What other ways could you have looked at information? <br /> <br />Vic Knight: There are certainly some very intricate software programs that do the linear aggression part. That is probably <br />the best other fashion. Again, to get an accurate picture of that, you need as large a set of data as you can derive. That is <br />probably the best other. <br /> <br />James Carter: Isn’t the idea of having the software in regards to linear aggression, my understanding in regards to linear <br />aggression is you have to a plus or minus. Are you aware of that when you use linear aggression? <br /> <br />Vic Knight: There are all kinds of statistical references for various standards of deviation and you have to look at a rather <br />large set of data to get those standards small enough that they have minor effects. <br /> <br />Jeffrey Schmitt: Any other questions? <br /> <br />James Carter: Some factors affect the sale of the real estate in that area we are talking about now. <br /> <br />Vic Knight: A couple of things people had mentioned. Someone had made an addition to a house. That might have and I <br />think it would likely have an effect on the next sale price might happen to be. The other side of that may be that you have the <br />same house and over the ownership period I pick five years, they may have done nothing in terms of maintenance and it <br />may have a fair amount of abuse so its condition could actually deteriorate. If you look at sufficiently large set of data, you <br />will have some of those that will less appreciation, if any, and then you will have some that may have significant amounts. <br /> <br />Nick Herman: Based about what you guys have been asking, when you are looking at a ___, if a house appreciates, it of <br />course has not lost value so long as it has appreciated, right? By definition, appreciation means an increase in the price, <br />right? The market value, right? <br /> <br />Vic Knight: Yes. <br /> <br />Nick Herman: Depreciation, if that occurs, that is a reduction in value, agreed? <br /> <br />Vic Knight: It could and it would. <br /> <br />Nick Herman: In all of your data, whether you are talking about one, two, three or ten percent appreciation, by definition, if it <br />appreciates, the value is either being maintained or enhanced, right? <br /> <br />Vic Knight: Correct. <br /> <br />Nick Herman: Regardless of the rate of appreciation, right? <br /> <br />Vic Knight: Correct. <br /> <br />Nick Herman: The only time the value goes down is if you go evidence of depreciation, agreed? <br />