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time adjustment?

Discussion in 'Urgent - Help Needed' started by josh smith, Mar 17, 2006.

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  1. josh smith

    josh smith New Member

    0
    Dec 23, 2005
    i am doing a purchase for a condo. the purchase price is 425,000. the complex is pretty small and only 1 comparable was found inside the complex within the last 6 months. it was a good comparable (model match right next door) that sold for 400,000 4 months ago. all other comparables outside the complex were less than 400,000 but also sold around 4 months ago.

    would anybody add value for a time adjustment?

    i just dont see how you can justify a higher value than 400,000 if there isnt a comparable that high no matter how long ago it sold.

    some input will help

    thanks
     
  2. Denis DeSaix

    Denis DeSaix Elite Member

    311
    May 16, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    Josh-

    Your question “would anyone add value for a time adjustment” depends on the market. If I could demonstrate that the market has increased for the condo market, and had good outside comps, I would consider it.

    Attached is an example of the type of analysis I include in my reports; I do this routinely for all reports. It supports any time adjustment I make and fulfills the new form’s requirement to “include support” for the market conclusions on page one.

    In cases where the data shows an increase, this summary provides me with market support for the adjustment.


    Do the analysis and see where the same-project comp falls if time adjusted: In a small project, there isn’t always “recent sales” available. I wouldn’t automatically reject a market time adjustment. I'd complete the analysis and see if one should be considered. If you do, you may conclude afterward that the subject is selling below market (who knows?).

    Good Luck.
     

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