Bedroom Vs. GLA Adjustment

[Tim The Enchanter]

in a condo all your buying is square footage and maybe a view.

And maybe some amenities.

Some projects I have seen a $100k diff between 1 bedroom and 2, even though size was very close. One of the full service high rises on Wilshire where prices run past $1Mil easy.

 

[glenn walker]

This may be true in other states SO -CA is a place with a large ethnic community and 2 to 3 bedroom can be significant SO the appraiser and the reviewer need to understand their market ..2 Bed Rooms in some markets are worth "significantly less " BUT IN West Hollywood or in San Francisco there may be no difference at all ** If the poster had stated where the CONDO was ( Not address but just city or community ) WE could nail-it down in about 40 minutes . No offense to the poster because he/she has probably not done a lot of reviews and the bulls eye appraiser one this battle : ) LOL

 

[residentialguy]

Wow...what's with all this "bullseye" stuff? You don't have the report in front of you, yet it must be a "bullseye appraiser". Did you not read DeSaix's posts??? OP's value is only what...about 4% off of "the bullseye"

 

[glenn walker]

Res Guy : READ ORIGINAL POSTERS #4 She stated that It looked to me that the appraiser was trying to hit a number (which he did) by applying an inconsistent adjustment.That's why I was talking about bullseye !

 

[glenn walker]

Wow...what's with all this "bullseye" stuff? You don't have the report in front of you, yet it must be a "bullseye appraiser". Did you not read DeSaix's posts??? OP's value is only what...about 4% off of "the bullseye"

READ ORIGINAL POSTERS #4 She stated it looked like the $30K bedroom adjustment was to make value and it did .

 

[residentialguy]

Looking over an appraisal on a 3 bedroom condo. For one sale on a 2 bedroom unit, the appraiser made a $30,000 positive adjustment for a bedroom and no adjustment for GLA (171 sf difference). The next comp, a 4 bedroom, he made no bedroom adjustment, but made a GLA adjustment of $150 psf (499 sf difference). The explanation was 'to avoid double dipping"

As others have said, the bedroom count contribution to value is much greater on low count bedroom(2) vs the high (4+), so not adjusting for the 4th bed is not surprising.

Lets use your scenario adjustment suggestions.

1. Adjusting for both bed (15k) and GLA on the smaller unit and using $100/sf GLA instead of $150/sf

• Assuming that the 2 bedroom is smaller: IF he made the GLA adjustment on the 2 bedroom of +$7500, plus a $15k bedroom adjustment, it would have lowered the adjusted price by $7,500 but ...

• Assuming that the 4 bedroom is 499 sf bigger: If he used say $100/sf adjustment, his adjustment would have bumped the adjusted price of that comp HIGHER by $25,000!

2. Adjusting for both bed (15k) and GLA on the smaller unit and using $125/sf GLA instead of $150/sf

• Assuming that the 2 bedroom is smaller: IF he made the GLA adjustment on the 2 bedroom of +$21,000, plus a $15k bedroom adjustment, it would have raised the adjusted price by $7,000 and ...

• Assuming that the 4 bedroom is 499 sf bigger: If he used say $100/sf adjustment, his adjustment would have bumped the adjusted price of that comp HIGHER by $12,500!

So, if he was a "bullseye appraiser", it would have been a bit easier to hit the target using the method you are suggesting.
I haven't seen the report or your review, but thus far, I'm not feeling the love for your review, Nancy

 

[glenn walker]

Gee it was a 3 bedroom and 171 Sq.Ft. larger than the 2 bedroom unit so why start assuming anything -A whole bunch of calculations based on a 399 sq.Ft. 4 bedroom unit. First of all people looking or needing a 4 bedroom condo are not even looking at a 2 bedroom units and even though they are both condos that does not necessarily make them truly comparable.

 

[residentialguy]

Gee it was a 3 bedroom and 171 Sq.Ft. larger than the 2 bedroom unit so why start assuming anything

Because I have seen larger units with less bedrooms, but typically the larger bed count, the larger the GLA...hence was why I put "I assume" that this was the case. If it wasn't, than OP has a legitimate concern, as it wouldn't add up.

The subject was a 3 bed. The appraiser used a max variance of +/- 1 bed count condos as comps, which is acceptable if you don't have all 3 bed comps. I broke it down to what OP was suggesting and showed that it didn't matter...rather actually showed that the price could have been adjusted higher than the contract by doing it her way. Now, you want to explain what you're trying to say?

 

[Tim The Enchanter]

What about the listing that shows 3 bedrooms at the top, but says 4 in the comments?
Three and a den or an office or a play room or.....
It's 2800 sf here but it's maybe 2200 sf ala public records w/o the guest house cabana tool shed. But that's not made clear.
We would get hammered for being inconsistent and totally vague, agent not so much.
Good luck calling them for clarification.

 

[Artemis Fowl]

IMO: A bedroom count adjustment is a consideration for utility. Say the properties were the same size but one was 2 bedroom vs. the other at 4 bedroom. I'm likely to adjust for that difference in my market. A utility adjustment amount may very well exceed the square footage amount containing it. The mathturbation going on misses the fundamental difference in comparison...apples to oranges. What the OAR you describe shows makes sense to me. The bigger question is whether the utility adjustment is supported by presented data.