Art Of Patio Adjustments

[Brad Potts]

I've done about 400 appraisals. I've never messed with patios, never had anyone question me about it either. My grid just has patio all the way across subject and comps, never an adjustment. Both mentors have done this. Was wondering if anyone messes with deck adjustments, patio adjustments, porch, etc. Or is it best to just do as I do?
Thanks

 

[Nancy Wyatt]

I have always made deck, patio adjustments. Had 2 additional decks built onto my home last year. They are expensive.

I have not found an area yet where given 2 identical homes except for a deck, that a typical purchaser would not pay more for the deck. Adjustments are based on paired sales.

Do all the homes in your area have patios? Doubt it. Its an ammenity you adjust for. Now perhaps you could have a subject with 3 decks, and 2 patios and a comp with 2 decks and 2 patios-then there MAY not be an adjustment necessary. If that is determinedl; I write "no impact" on the grid.

You have to look into your market for the answer. Its part of the job.

 

[Big ole Boy]

Brad,

On the grid I do it this way:

440 sf garage

200 sf porch

40 sf deck

80 sf patio


I type it in across the grid for each comp as well - if I can, - I try to put as much info in there - if I have the info.

Brad, it communicates your posture, posterity. I have not always done it like this. When I first started out I did not put that much work into it.

I adjust for the size differences - while it in insignificant in many cases - it clearly establishes communicates my desire to spend time delinating the subject from the comps.

Its a sub-conscious posture that transcends throughout your report.

Such an approach - requires more than a boiler plate 2 sentence neighborhood description. Parcel numbers of the comps, official record book and page numbers are some other time consuming reporting techniques of mine.

 

[Chris Colston]

I have always made adjustments between patios, porches, decks, screened patios, screened porches and enclosed porches. The market recognizes a difference so I have to. The line is on the 1004 for a reason, not just to take up space. My adjustments have more to do with covered vs non-covered, screen vs non-screened, enclosed vs non-enclosed. Unless I can verify the size of the patio/porch I don't adjust for size differences.

 

[Jungle Boy]

I'm with Chris.

 

[Otis Key]

Brad, like Nancy said, does the market indicate an adjustment? Yes - then make one. Typically - No - then don't.

In those cases where the data isn't clear I will typically type in there "Nominal". Flows on through.

 

[Dave Fitch]

I also agree with Chris. :yellowblack:

 

[Steve Owen]

The market recognizes a difference so I have to.

That's the key.

 

[Randy Beigh]

My problem is not with the adjustment. It is with piddly adjustments. A 200K house with a $500 adjustment for a patio is silly and can't be proven in the market, because this profession isn't that scientific. That is 1/4 of 1%, so the adjustment is a guess based on the appraisers perceptions. I think adjustments should be logical, otherwise, leave them off as they will only tend to make the appraisal ugly and petty.

I am dealing with this issue right now. The appraiser made a $250 adjustment. I'm thinking $50. Get real. He says he did it because the underwriter will realize that if he didn't make an adjustment, they would want to know why. Crazy.

When I first started working in Spokane, the average home price was about 25K and appraisers, commonly, adjusted for appliances, like $25 for a hood and fan or $100 for dishwasher. It was silly then and nobody does it today.

 

[CANative]

I agree with the above but have to admit that sometimes (many times) it is a hard call. What's a patio... a 10 x 10 concrete slab somewhere in the back yard. What if it's broken up? What if it's elaborate? What if it's just some stones collected from the yard and placed attractively and they have some yard furniture and a BBQ.

MLS doesn't usually quantify the patio, decking, covered porch. Sometimes they use enclosed porches in the GLA. Patios and decking are at the rear of the house and most often cannot be viewed from the street. It's fine if there are rear yard pictures in MLS. Most of the time there are not. Because of this, my adjustments are not very large and they are somewhat generic. They also increase or decrease based on the quality and price range of the market. Large, upscale homes with many amentities "should" have some sort of large, upscale patio or decking system so my adjustments hit them or credit them much harder for any lack. Small, low end houses offering basic shelter, get much lower or no adjustments. The range in between gets my more generic, "standard" adjustments.

I also admit that I do not carefully measure decks and patios (I do measure enclosed porches, sunrooms, atriums, etc.) I generally estimate the size and shape and location relative to the residence and sketch it in based on that. I'll also note the condition and quality and make field notes like small, medium, large or very large. There's just not enough good data in my market to do otherwise. Keep in mind that I work in a large, sparsely populated, rural/semi-rural area. The low end of SFR's is about $75k and the sky is the limit at the upper range (as much as $2-3 million, with a few at $10 million +.)