2-4 units, Unit adjustments

[Lee Lansford]

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First off, I don't know you can determine unit adjustments if you don't have at least one comp with the same number of units as the subject.

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Income approach.

 

[Smokey Bear]

Well, I worked on it last night and it all started coming back to me. Between the income approach and the sales grid, I was able to extract what I needed. Thanks, all.

 

[Mike Kennedy]

Well, I worked on it last night and it all started coming back to me. Between the income approach and the sales grid, I was able to extract what I needed. Thanks, all.

Subject is a legal 4 family?

 

[Surf Cat]

Well....one of my mentors has told me time and time again...."all of the comps can't suck for the same reason".

For sales comp, I'd think you need to find at least one 4-plex comp, even if it's a year or 2 old sale.

I agree with the above quote....don't know which area in Torrance as it has several, and of couse size and construction come into play....but I went back one year in time right now and found 10 4-plex sales.

 

[Webbed Feet]

I've always gone out of my way to compare like buildings - duplex comps for duplexes, etc. I'm reviewing an appraisal of a 4-plex (hate the term 'quadruplex, it sounds like someone trying to justify their overeducation LOL). The appraiser used two duplexes and a triplex, with $5k unit adjustments on a $430k property.

First off, I don't know you can determine unit adjustments if you don't have at least one comp with the same number of units as the subject. Second, how DO you come up with unit adjustments? Find a triplex that is 3/4 the size of a similar 4 plex that is similar to the subject, and use the price difference as your adjustment? Like I said, I've worked in an area that always had sufficient comps of the same time. (lucky me) and would rather go back in time for comps than use something with a different unit count.

More Smokey, differing unit counts will typically hopelessly skew the GRM estimate.

 

[CANative]

More Smokey, differing unit counts will typically hopelessly skew the GRM estimate.

Use GIM. Develop a range and reconcile.

 

[Pittsburgh Pete]

Base adjustments on the impact the differences have on rent/income. The focus should be on the income, even in the Sales Comparison approach.