What are my peers' adjustment values when appraising $1.7 to 2.1million?

[Terrel L. Shields]

That makes my head hurt. But to just address the Lot square footage.
is this what you mean?
Assessed Val/Equalization rate Lot S/F $per S/f
$603,745 12893.76 $46.82
$674498 16030 $42.078
$698,132 17076 $ 40.88
$513,869 11238 $ 45.72
$549,816 9278 $ 59.26
$566,657 10019 $56.56

Average $48.553

That would be the highest adjustment for land I've ever tank by 10 times. Except for vacant land.

err... no. I mean if I look at sales and the value of a comp lot is $100,000, and my 3 land sales show the subject lot is worth $80,000, then my comp has to be adjusted down by $20,000. period. Dollar for dollar. Do you actually compare lots and determine a lot value for your subject or comps?

 

[shrubberyvaluation]

I recently got a private appraisal for a prominent member of my home town who wants to know their home's value.
It was referred by a mutual friend.
The comps I have indicate $1.9. I plan on using 6 sold comps.

I'm confident in my adjustment values when doing mortgage work. But this one has me second guessing myself and I want to hear what you guys are doing.

The subject was built in 1920, 3200 s/f. 5 bedrooms (two legal BRs on the third floor), 3.1 baths, C2 condition, since it was gut rehabbed in 2023, lot size is 12,000 s/f.
The comps are similar in age and location, with some variation in conditions.
The undeniable comp is from June 2024 and is right across the street, with an identical lot size and condition, but is 3700 s/f and sold for $2,025,000.
So, what would your adjustments be on GLA, baths, lot size, garage, condition, pool, patio, deck, finished basement. Etc.?

Have you tried looking at the market and trying to isolate variables?

 

[Joe Flacco]

Not having much info about the property, if the value is $1.9m and the value of the land is $1m, then divided by 3,200 SF gives you $281 per SF. So taking out baths and garages and stuff like that might put the adjustment for the structure size around $250 per SF.

That is around what new renovations would be adjusted for in my area.

 

[John Hassler]

Not having much info about the property, if the value is $1.9m and the value of the land is $1m, then divided by 3,200 SF gives you $281 per SF. So taking out baths and garages and stuff like that might put the adjustment for the structure size around $250 per SF.

That is around what new renovations would be adjusted for in my area.

Thank you.

There is a correlation at this price point between site value and $/sf of GLA. A 100/sf GLA adjustment would be consistent with a home near the end of its EL. As always, there are exceptions.

 

[Joe Flacco]

Thank you.

There is a correlation at this price point between site value and $/sf/GLA. A 100/sf GLA adjustment would be consistent with a home near the end of its EL. As always, there are exceptions.

Yeah, the adjustment could be zero if it is a $1.9m tear down.

$1.9m and the land is worth, $200k, then the adjustment for the structure size would be much greater.

 

[cdanj]

Assuming prices have not changed, and based on the info you provided, the GLA difference is $312.50/sf for the 400sf difference between the subject and the home across the street.

Can’t answer your question specifically as I don’t know your area but that would be consistent with a suburban land value of around 800,000 in my area.

I rarely go over $100 sf for GLA and $2 a foot for land. In areas where lot size is important IN the rural areas in NJ I generally do $10-$15,000 for the first 1 or two acres and about $2500 - 5000 per acre above that. depending on the improvements and quality of build.
What I was taught was that GLA values are more nuanced in areas with all independent builders over the past 100 years.
in my area a house with 1200s/f may sell for $50,000 more than a 1450 s/f house next door with the same lot size, condition, improvements.
And it is my job as an appraiser to notice the nuanced differences that caused it, or at least notice the nuanced differences of the 1200 sf subject that make it the same as or more than the 1450 s/f comp.
I think it really comes down to a wide variation in functional utility that is hard to quantify as an appraiser, but the buyers certainly do.

 

[cdanj]

Uhmm...the reported difference is 500 square feet. Also, the $1.9 million is based on comps adjusted at $100/sf. I don't think there is sufficient information to conclude an adjustment rate.

Land in this area is at an extreme premium. Equalized assessed value of the subject is about $600,000 but people are buying $900,000-1,400,000 houses with the same lot and knocking them down.
we are 8 miles from Manhattan with stellar schools.

 

[cdanj]

Yeah, the adjustment could be zero if it is a $1.9m tear down.

$1.9m and the land is worth, $200k, then the adjustment for the structure size would be much greater.

Land in this area is at an extreme premium. Equalized assessed value of the subject is about $600,000 but people are buying $900,000-1,400,000 houses with the same lot and knocking them down.
we are 8 miles from Manhattan with stellar schools.

 

[Joe Flacco]

It's the high-value small lots where lot size and site characteristics in general are super important.

 

[Joe Flacco]

Land in this area is at an extreme premium. Equalized assessed value of the subject is about $600,000 but people are buying $900,000-1,400,000 houses with the same lot and knocking them down.
we are 8 miles from Manhattan with stellar schools.

That means the value of the land is $900k-$1.4m. The range can be explained by specific location, zoning, or size of the lot.

That is what I figured it would be up there for a 12,000 SF lot improved with a 3,200 SF dwelling renovated in 2023.

$1 million lot improved with $900k renovated house. The new construction is probably around $3 million there.

So if the lot is $1 million, then the contributory value of the renovated 3,200 SF dwelling is around $281 per SF and the adjustment is probably around $250 per SF.