Adjustments For Bedroom Count?

[ucbruin]

So why do you think there is a box in the Sales Comparison Grid for BR count?

For descriptive purposes.

 

[glenn walker]

Adjustments :
* Gross living area adjusted at $______ per Sq.Ft. where variance is 100 Sq.Ft. or more.
* Bedroom count is absorbed in gross living area adjustments.

 

[J Grant]

I have not been making adjustments to bedroom count as, slight variances are typical in the market area I appraise (4 and 5 bedroom). I feel like I should make a stronger case with regard to a comment to explain. Currently, i am including this comment. "4 and 5 bedrooms are typical in this market area and no adjustment was deemed necessary."
IS THIS ENOUGH???

No, it is not enough, because the question remains: "4 and 5 bedrooms are typical in this market area and no adjustment was deemed necessary." WHY was no adjustment deemed necessary?

The better explanation would be: " No adjustment made between 4 and 5 bedroom comps because the market is not showing a measurable reaction in price. " To support that, you could add: Paired sales 1 and 2 after other adjustments are made only show a $2000 variance for bedroom count, too small to adjust for in a 400k price range, additional sales were analyzed along with interviews of RE agents. And or add/ the adjustment was made in living area and any variance in bedroom utility would be double adjusting / 4 bedroom comps have an additional den etc.

Over the years when you do it enough, you don't have to start from scratch each time out, but every assignment a review of data is made to make sure the comments are germane to assignment and not generic/dated, as markets can change over time or particular properties can show atypical market reaction.

 

[hastalavista]

I find it surprising that appraisers are actually performing any type of analysis to determine a value difference between 4 v 5 bedrooms.

Why would that surprise you?

 

[ucbruin]

Why would that surprise you?

Based on the posts I've read for almost 3 years....

 

[hastalavista]

Based on the posts I've read for almost 3 years....

I was imprecise in the wording of my question. Let me try again:
Do you find, in the normal course of your mortgage-residential work, that specifically analyzing for bedroom differences in the 4- to 5-count range, is sometimes meaningful for a particular assignment?

(It is unnecessary for me to ask if you perform such analyses because I assume if it is necessary or meaningful, you do.)

Edit to add (so as not to appear asking a loaded question): I find it necessary or at least meaningful at times, and I do it when I think that is the case.

 

[ucbruin]

I was imprecise in the wording of my question. Let me try again:
Do you find, in the normal course of your mortgage-residential work, that specifically analyzing for bedroom differences in the 4- to 5-count range, is sometimes meaningful for a particular assignment?

(It is unnecessary for me to ask if you perform such analyses because I assume if it is necessary or meaningful, you do.)

Edit to add (so as not to appear asking a loaded question): I find it necessary or at least meaningful at times, and I do it when I think that is the case.

"...is sometimes meaningful for a particular assignment?"

In regards to all/any differences between properties.....
I'm sure that the above statement rings true in some very rare (particular) cases....

Regarding specifically 4 v 5 bedrooms, I've yet to appraise where the subject/comparable was in the "particular assignment" category....

Couple of common points among the contributions to this thread.....
Incorporate bedroom differences into the GLA
And
Generic sounding explanations.

Why not incorporate the GLA differences into the bedrooms adjustment?

 

[hastalavista]

Why not incorporate the GLA differences into the bedrooms adjustment?

Because sometimes there is no size-difference between a 4- and 5-bedroom house; so it is a question of contributory value of the utility of a 5th bedroom unrelated to size.
However, incorporating the difference in GLA does make sense when the difference is related to additional GLA and not additional bed utility or the difference (if it exists) between the two is trivial.

In most of my markets, I don't see a value difference between a 4- and 5-bedroom house within certain size-ranges and the adjusted value differences between the two kinds of comparables cannot be correlated to bed count differences.
In some cases, it isn't so apparent; so I do analyze to see if I can determine a difference. And, in most of those cases, I cannot (there is a value difference, but it isn't related to the bed count; it is in some other element that I may not be able to isolate and identify). Every now and then I surprise myself and there is a value difference attributable to the bed difference. Rare, but it happens.

I do find myself checking 3- vs. 4-bedrooms... not all the time, but often enough so it isn't unusual for me to do so.

 

[ucbruin]

Because sometimes there is no size-difference between a 4- and 5-bedroom house; so it is a question of contributory value of the utility of a 5th bedroom unrelated to size.
However, incorporating the difference in GLA does make sense when the difference is related to additional GLA and not additional bed utility or the difference (if it exists) between the two is trivial.

In most of my markets, I don't see a value difference between a 4- and 5-bedroom house within certain size-ranges and the adjusted value differences between the two kinds of comparables cannot be correlated to bed count differences.
In some cases, it isn't so apparent; so I do analyze to see if I can determine a difference. And, in most of those cases, I cannot (there is a value difference, but it isn't related to the bed count; it is in some other element that I may not be able to isolate and identify). Every now and then I surprise myself and there is a value difference attributable to the bed difference. Rare, but it happens.

I do find myself checking 3- vs. 4-bedrooms... not all the time, but often enough so it isn't unusual for me to do so.

I find it surprising that appraisers are actually performing any type of analysis to determine a value difference between 4 v 5 bedrooms.

As with outlier residential sales/sellers/buyers/etc., there will always be outlier appraisers....
And in my opinion, you are an outlier.....

I stand by my previous post!!!!

 

[hastalavista]

As with outlier residential sales/sellers/buyers/etc., there will always be outlier appraisers....
And in my opinion, you are an outlier.....

Since an outlier can be on either side of the curve, I'll accept your characterization (subject-to my own interpretation on which side of the curve I fall).