Sales Grid Adjustment Comments

[Meandering]

Really. And what was Fannie adjustments?

The ones that made the deal work.

Keep up already.

 

[Meandering]

Really. And what was Fannie adjustments?

The ones that make the deal work.

Keep up already.

 

[Terrel L. Shields]

Snow kidding

 

[residentialguy]

"Let's start with a few lines to show us an example..."

Good morning ResGuy,

An example of "what"?

Same post that you ignored last time.
Lets revisit it again. Using your term "BS" ...What part of this is deceitful, deceptive or foolish - aka BS?
If you don't, then we know that you are the one spreading BS.

Here you go... show us an example of a few lines that are BS

Adjustments made to the comparables are based on analysis of historic sales data of thousands of properties over an extensive time period. Through the use of paired sales when available within a particular sub market, the use of sensitivity analysis when appropriate, interviews with RE agents, potential buyers and sellers, RE investors and other market participants the appraiser has developed adjustments within local market sub markets (size, lot size, price range etc) that are reflective of typical market participants reaction to the various differences in amenities, condition, quality etc. Adjustments are not necessarily "derived or developed" for each individual appraisal report in a vacuum, but are derived and developed over a long period of time of analyzing similar properties in a particular market sub segment repetitively.

 

[Tim Hicks (Texas)]

Really. And what was Fannie adjustments?

From Fannie Mae SEL 2014-16

Adjustments to Comparable Sales


As a result of an analysis of Uniform Appraisal Dataset data specific to comparable adjustments, Fannie Mae has eliminated the 15% net and 25% gross adjustment guidelines and has provided clarification with respect to Fannie Mae’s expectations for the appraiser to analyze the market for competitive properties and provide appropriate market based adjustments without regard to limits on the size of the adjustments.

From the current Selling guide:

Analysis of Adjustments


Fannie Mae does not have specific limitations or guidelines associated with net or gross adjustments. The number and/or amount of the dollar adjustments must not be the sole determinant in the acceptability of a comparable. Ideally, the best and most appropriate comparable would require no adjustment; however this is rarely the case as typically no two properties or transaction details are identical. The appraiser’s adjustments must reflect the market’s reaction (that is, market based adjustments) to the difference in the properties. For example, it would be inappropriate for an appraiser to provide a $20 per square foot adjustment for the difference in the gross living area based on a rule-of-thumb when market analysis indicates the adjustment should be $100 per square foot. The expectation is for the appraiser to analyze the market for competitive properties and provide appropriate market based adjustments without regard to arbitrary limits on the size of the adjustment.

 

[djd09]

How did they calculate $100 per square foot?

 

[Tim Hicks (Texas)]

How did they calculate $100 per square foot?

You figure it out.

 

[Mr Rex]

Funny, I did an appraisal today of a house less than 10 years old and after sensitivity was applied the adjustment went from $40 to $30 to $20 per sf. So much for Fannie Mae and the great CU findings.

 

[residentialguy]

I never knew you were so sensitive, @Mr Rex

 

[djd09]

Fannie CU took the sales price divided it by the GLA and bam there is your price per square foot.

They didn't subtract the land value. Or did they give consideration for market reaction. The GLA adjustment is not a straight line per square foot calculation. Good try Fannie.