GLA Adjustments

[Zoe]

Hey Guys and Gals,
How do you determine your GLA adjustments (hard number or %) and how do you explain it in your report?
As always thank you very much for your comments.

Did underwriter question you GLA adjustment? Just curious.

 

[Zoe]

I ran 5 differant approaches to determine GLA adjustments.

1. Mass MLS data average. $60 per sqft
2. Regression $45-71 psqft synapse
3. Ratterman method 65 psqft*
4. Cost depreciation $101 psqft aloft
5. Base price new construction $66 psqft 2,500 sqft to 2,800 sqft. Matched pairs.

Subject was 2,600 sqft sold 465k


This was for cookie cutter tract data. Rural appraisers or high end properties good luck. Regression goes down hill quickly.

Amen. Forget regression on rural and some urban properties. Suburban, it would work more effectively. I have no problem with extraction method on cost approach on new construction, but .............

Mass MLS data questonable.


I don't use ratterman method.

BTW new construction is different animal all together.

 

[Zoe]

The problem with regression is if you don't have truly comparables it is like pizzing in the wind.

 

[OG80]

Did underwriter question you GLA adjustment? Just curious.

No. I'm just trying to figure out in a clear (SIMPLE!) concise manner if there is a way (read spreadsheet I can use) that will allow me to enter in certain data and out spits a "Per Foot" adjustment for GLA. May be "wishing" a bit here, but this is what I have come to think about this profession. In some instances, there are a number of ways one can do things vs. structured and universally accepted ways. Yet, they want us to be precise in our numbers. .....

Here is what I'm working with currently. Rural properties. Horses allowed.

How would you determine the GLA adjustment?

 

[J Grant]

Most direct way for sales comparison approach imho. I won't swear you don't need to go find new comps if things don't rhyme in indicated values very close.

That throws a red flag if you have like 30% difference in indicated values of the comparables after adjusting for GLA. .

I've never had such a huge difference in indicated values after adjusting for GLA.

 

[J Grant]

No. I'm just trying to figure out in a clear (SIMPLE!) concise manner if there is a way (read spreadsheet I can use) that will allow me to enter in certain data and out spits a "Per Foot" adjustment for GLA. May be "wishing" a bit here, but this is what I have come to think about this profession. In some instances, there are a number of ways one can do things vs. structured and universally accepted ways. Yet, they want us to be precise in our numbers. .....

Here is what I'm working with currently. Rural properties. Horses allowed.

How would you determine the GLA adjustment?

The flaw is that you are looking for a software program that will spit out the answer for you. That is not appraising. They do not want us to be precise in our numbers. They want us to support our adjustments. The RE market is not precise. A software program is a tool, one way to get an adjustment, but it has to be tested with the comps on the grid and relate to the cost approach, and quality of the construction. And if the comps are not well chosen, even the best supported adjustment won;t help - fwiw.

Doing the work, the analysis to get the market-derived adjustment works on all kinds of properties, including rural and horses allowed.

 

[NC Appraising]

No. I'm just trying to figure out in a clear (SIMPLE!) concise manner if there is a way (read spreadsheet I can use) that will allow me to enter in certain data and out spits a "Per Foot" adjustment for GLA. May be "wishing" a bit here, but this is what I have come to think about this profession. In some instances, there are a number of ways one can do things vs. structured and universally accepted ways. Yet, they want us to be precise in our numbers. .....

Here is what I'm working with currently. Rural properties. Horses allowed.

How would you determine the GLA adjustment?

I'm mostly about suburban appraiser, but every once and awhile I do somewhat rural appraisals. Rural for me anyways.

I never put 100% on Ratterman, but I do use it as support or as a check point for SFR homes, no condos. Large acerage doesnt work, unless you subtract out the acerage first.. I test my results against ratterman, and in my market it's more reliable than regression and cost depreciation. Heck. Regression usually gives me a such a wide range....

Ratterman is similar to the allocation method. Keep track of your data....

I would do group data analysis. Assuming you have a MLS importer....make a template in alamode. Download +-5 sales, as similar as possible.

In smart adjust, you can compare, arrange comps, etc. Little irritating, but can be done. As others have stated, do all other adjustments and then GLA last. You can then take that data to your report.

For support, in your other post, screen shot and add to your report or file.

I admit, I cannot believe that someone or the form software companies hasn't came out with a match pair or group data software app. Not regression.

 

[Fernando]

Can't remember I ever got called out on my GLA adjustments.
It's called appraiser intuition based on art. Some have it many don't.

 

[OG80]

I'm mostly about suburban appraiser, but every once and awhile I do somewhat rural appraisals. Rural for me anyways.

I never put 100% on Ratterman, but I do use it as support or as a check point for SFR homes, no condos. Large acerage doesnt work, unless you subtract out the acerage first.. I test my results against ratterman, and in my market it's more reliable than regression and cost depreciation. Heck. Regression usually gives me a such a wide range....

Ratterman is similar to the allocation method. Keep track of your data....

I would do group data analysis. Assuming you have a MLS importer....make a template in alamode. Download +-5 sales, as similar as possible.

In smart adjust, you can compare, arrange comps, etc. Little irritating, but can be done. As others have stated, do all other adjustments and then GLA last. You can then take that data to your report.

For support, in your other post, screen shot and add to your report or file.

I admit, I cannot believe that someone or the form software companies hasn't came out with a match pair or group data software app. Not regression.

It's coming with AI. Someone will come up with it.

 

[OG80]

The flaw is that you are looking for a software program that will spit out the answer for you. That is not appraising. They do not want us to be precise in our numbers. They want us to support our adjustments. The RE market is not precise. A software program is a tool, one way to get an adjustment, but it has to be tested with the comps on the grid and relate to the cost approach, and quality of the construction. And if the comps are not well chosen, even the best supported adjustment won;t help - fwiw.

Doing the work, the analysis to get the market-derived adjustment works on all kinds of properties, including rural and horses allowed.

I really don't need to hear what "appraising is". I know what a software program is. I'm just inquiring to see if anyone has a technique / software / solution to minimize the time it takes and can support it.