Applying location adjustments: Adjustment protocol?

[ZZGAMAZZ]

The subject is located in an upscale location in a city with few sales, so I wish to include comps from a near-by portion of the subject city and identical portions of the two adjacent cities, by comparing results of 3 MLS searches using identical phyical characteristics and the exact same borders--yielding 3 results of the median $/sqft.

So now I know the median$/sqft of each, and the corresponding $ differences/sqft: Subject is Studio City, $1,012/sf. Near-by cities are Sherman Oaks, $838/sf, Beverly Hills, $1,175/sfll.

Should I apply the two different dollar amount adjustments to the selling prices to determine the location adjustment, or do I need to "normalize" the dollar amount to the adjusted values previously determined before the location adjustments were applied, etc., etc.?

Answer more obvious than i realize, also less complex that I have described. Caveat: This analysis isn't necessary but interesting and meaningful IMO.

-------------------- OR, ASKED A DIFFERENT WAY:

I know the $/SF of 3 different locations, which is based upon the selling prices, so it reflects all physical & locational factors.

But because it is expressed as $/SF should the adjustment be applied to GLA (which I presume is how it is best described), or the Location (because that is the basis of the differences), and/or should the adjustments be absolute based on the different $/sqft, or on a relative basis, and if so, as a percentage of the unadjusted selling prices, or as a percentage of the GLA differences, or as a percentage of the difference in lot sizes, etc., etc.? [I thought make the issue easier but maybe not...]

 

[Dublin ohio]

I would think that the raw price per sf would not be a good indicator of location, unless all other "major" items are equal, such as site size, condition and quality

 

[Tom4value]

I will presume you are talking about the sales comparison approach. If you are, forget about the cost/square foot. Buyers don’t consider that in single family, owner-occupied homes. Look at location, condition, quality and overall appeal.

 

[ZZGAMAZZ]

I would think that the raw price per sf would not be a good indicator of location, unless all other "major" items are equal, such as site size, condition and quality

I controlled the search by including GLA, lot size, date of construction, and location in an attempt to ensure data accurately reflects the subject. Having done so, would the raw price be more appropriate? [Sorry, I'm just not getting it yet.]

 

[ZZGAMAZZ]

I controlled the search by including GLA, lot size, date of construction, and location in an attempt to ensure data accurately reflects the subject. Having done so, would the raw price be more appropriate? [Sorry, I'm just not getting it yet.]

Trying to figure out if the canned CRMLS info upon which the three $/sf values are based is rich enough to make the value meaningful in my SCA adjustment. Maybe that's what the AF is saying...

 

[ZZGAMAZZ]

Trying to figure out if the canned CRMLS info upon which the three $/sf values are based is rich enough to make the value meaningful in my SCA adjustment. Maybe that's what the AF is saying...

Wish i could upload the table downloaded from CRMLS into the AF...

 

[Dublin ohio]

Are there vacant site sales in these neighborhoods? If so, comparing them could give you some more insight

 

[Surf Cat]

Trying to figure out if the canned CRMLS info upon which the three $/sf values are based is rich enough to make the value meaningful in my SCA adjustment. Maybe that's what the AF is saying...

Price per sq.ft.? Beverly Hills? I'm assuming you mean Los Angeles with Beverly Hills zip code. Even so, I wouldn't go over there from 91604. Go further back in time in Studio City. Expand your parameters to 25%.

Dude....you have the CRMLS. The CRMLS has InfoSparks. InfoSparks will give you the median sales price for each area (zip code if you want.. You can make a location adjustment with a difference in % of median sales prices. NOT P.P.S.F.

OR, you can use the drop down area (Valley Village, Sherman Oaks, etc.) locator in Los Angeles and download similar sales of each area to determine the percentage difference. You can also outline the areas in the MLS map section where your other comps are and download the data to determine the median sales price differences from there.