Newz: Scatter Charts, Do Not Use List, UAD 3.6 Key Changes and Resources
March 30, 2026
What’s in This Newsletter (In Order, Scroll Down)
- LIA AD: Am I Still on the ‘Do Not Use’ List
- The Power of Scatter Charts: Bringing Objectivity to Appraisals
- by Scott Cullen
- 1780 Tiny Home That Was Built by a British Sea Captain Hits the Market in Georgetown for $1,198,000
- MY AD: Highest and Best Use of the Cost Approach
- The housing market so far in 2026 By Ryan Lundquist, March 11, 2026
- Trump’s Executive Order on Access to Home (including appraisers)
- MBA Origination Stats: Mortgage applications decreased 10.9 percent from one week earlier
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The Power of Scatter Charts: Bringing Objectivity to Appraisals
by Scott Cullen
Excerpts:
“Objectivity is isolating the effect of individual variables on value.”
Once upon a time, in a suburban neighborhood not so far away, an appraiser came across a pure pair, two homes that seemed almost identical. They shared the same neighborhood, lot size and condition. The only difference was size. One house had 2,500 square feet of above grade finished area and the other had 2,300. The first sold for $460,000, the second for $446,000. The difference in price was $14,000. The difference in area was 200 square feet—producing an adjustment of $70 per square foot.
Traditionally, an appraiser might document this relationship as a simple table, noting the difference in sale price and living area. Unfortunately, pure pairs are so rare that they often seem like a fairytale—something every appraiser dreams of finding but seldom does. In the real world, properties rarely align so neatly. Markets shift, concessions appear, and location nuances creep in. Yet there is hope. By learning to use scatter charts, embracing adjusted pairs, and understanding sensitivity analysis, appraisers can move closer to true objectivity in their valuation work.
From Paired Sales to Sensitivity Analysis
The Appraisal of Real Estate, 15th Edition defines paired data and grouped data as forms of sensitivity analysis—a method used to isolate the effect of individual variables on value. Sensitivity analysis is the overarching principle that allows us to quantify how much one variable contributes to price, while holding others constant (Appraisal Institute, 2020, p.371). Scatter charts are among the most powerful tools available to visualize and calculate these relationships.
Why Visualization Matters
Scatter charts do more than calculate—they communicate. They combine mathematical precision with the clarity of visualization. For appraisers, this means turning abstract numbers into evidence that both clients and reviewers can see.
A well-constructed scatter chart illustrates the logic behind the adjustment and lends weight to the appraiser’s conclusions. It reinforces transparency: others can replicate the math, verify the trendline, and confirm that the adjustments are derived from observable market behavior.
As the saying goes, “A picture is worth a thousand words.” In appraisal, it’s also worth credibility. Scatter charts bring statistical discipline to the craft of valuation, grounding professional judgement in data.
To read more, Click Here
My comments: Read more to see scatter chart samples and how they are used.
