A MultiFamily Question on Adjustments

[hastalavista]

If you go back to post 613 I think it was and read choice #4, you'll see that was a consideration. The fact is, something is wrong, and before I submit the report, I aim to figure it out.

Good- we can agree with this at least!
And, your point four (which I did read) summed up my argument; if the data is contrary to what was presumed (location was perceived to be different but evidence to the contrary (in this case, income) exists), then the presumption may not be true- and an adjustment would not be warranted or supported.

 

[Mztk1]

Good- we can agree with this at least!
And, your point four (which I did read) summed up my argument; if the data is contrary to what was presumed (location was perceived to be different but evidence to the contrary (in this case, income) exists), then the presumption may not be true- and an adjustment would not be warranted or supported.

Absolutely. I hope we all try not to presume anything, as difficult as that can be at times. But in your example, we simply know there is some askew, we do not know yet what it is and have to figure it out. I think that is what Sandy is getting out. If we keep the approaches separate and then compare, it gives us a better chance of catching the less reliable data. Of course, that is in the perfect world. In reality, when appraising a four family arounnd here, you're lucky to find at least one other four family to compare it to, and finding less reliable increments of $100 in monthly rent becomes a bit of a fantasy.

 

[Mztk1]

PE-I sure would like to see your 1007 form!!!

It's a four family Sandy. That means the 1025 form more than likely. No need for a 1007 form - rental comp page is built in.

 

[PropertyEconomics]

PE-I sure would like to see your 1007 form!!! hee hee!!! Let me guess-no adjustments at all to your actual rents for the differences in the sales and the subject.
Your blowin a lot of smoke and where there is smoke there is likely a fire. I am glad that the underwriter went for your smoke and mirrors magic show. I can only take your word that there were only 4 comparables available.
Did your sow reflect your methods? OOops I mean your one method.

Apparently you cant read Sandy and im curious .. do you put 1007 forms with your multi family appraisals? Your trainee is showing again.
As to geographical competency .. you have none here. You should remember that. Our market doesnt react the same as yours does .. most of ours is stable .. I hear yours is tanking. Is that true?

 

[SANDY]

Jim- You are probably right-as long as his sow accurately reflected what he did and since he now says that his sales data was limited it might be more in the realm of what an individual appraiser might choose to do or not do.
Yep, it is the 1025 form-my bad! Although the form doesn't provide space for adjustments to the rental data one still has to do it in the opinion of market rent section. Or maybe not if one has perfect rental comp matches. Still got that nasty grm problem though where one would need sales prices of comparables and with only 4 comparable sales it looks like soem potential for a large margin of error. Not to mention the inherent flaws in the grm itself. Maybe he did a cap rate.

Wouldn't that be like an enhanced report? Darn what a good idea that would be.

 

[PropertyEconomics]

A cap rate on a four plex? My God Sandy you just dont get it ......

So tell me .. How is the view from up there?

 

[Otis Key]

Wouldn't that be like an enhanced report? Darn what a good idea that would be.

I haven't read enough of this thread to completely reply but I must ask. What do you mean by enhanced report? Were you a LO before you became a trainee?:new_smile-l:

 

[PropertyEconomics]

Hmmmmm ... the dancer came to work and Sandy stopped posting .... very curious ...... :new_xmas:

 

[SANDY]

PE-your grm has inherent flaws in it whether you know it or not. Why not do a cap rate it's more accurate. Hey PE did you get an infraction from the moderator-I did.

Another quality post by Otis! Use your search engine to find out what is meant by an enhanced reprting format.

 

[Stone]

PE-your grm has inherent flaws in it whether you know it or not. Why not do a cap rate it's more accurate. Hey PE did you get an infraction from the moderator-I did.

Another quality post by Otis! Use your search engine to find out what is meant by an enhanced reprting format.

I cannot imagine why you'd get an "infraction" from a moderator.