Best Method To Determine Location Adjustment?

[Joe Flacco]

I'm actually working on a new construction right now just outside of the beltway and the price difference with the same product inside of the beltway would be greater than the difference in site values. The cause is market conditions for the product being different inside and outside of the beltway.

 

[Mr Rex]

So it would be equal if exactly same quality? Do you suggest that there is no adjustment attributable to location, its all quality of construction?

 

[Joe Flacco]

So it would be equal if exactly same quality? Do you suggest that there is no adjustment attributable to location, its all quality of construction?

Your question is not making any sense to me.

 

[Mr Rex]

The thread is about location adjustments. You are talking about QOC adjustments. Is there or is there not an adjustment attributable to a location in or outside the beltway?

 

[Joe Flacco]

The thread is about location adjustments. You are talking about QOC adjustments. Is there or is there not an adjustment attributable to a location in or outside the beltway?

I didn't talk about quality of construction adjustments.

Yes, there is a adjustment attributable for a location inside and outside of the beltway in McLean. If using comps from both sides, the data is suggesting that the difference is greater than the difference in site value for new construction. The cause of the difference being greater than the difference in site value is the difference in market conditions.

 

[Mr Rex]

You said the differences in value are attributable to better construction quality. You seem to be talking out of both sides of your mouth to cover your prior comments.

 

[Joe Flacco]

You said the differences in value are attributable to better construction quality. You seem to be talking out of both sides of your mouth to cover your prior comments.

I didn't bring up construction quality, but yes, difference in construction quality in two different neighborhoods could cause a sale price difference greater than the difference in site values. Improvements in both neighborhoods could be best described as Q3 quality construction but that is a pretty big range. A Q rating has a pretty wide range.

 

[Mr Rex]

I didn't bring up construction quality, but yes, difference in construction quality in two different neighborhoods could cause a sale price difference greater than the difference in site values. Improvements in both neighborhoods could be best described as Q3 quality construction but that is a pretty big range. Maybe $50 per SF of improvement kind of big range.

The cause is market conditions for the product being different inside and outside of the beltway.

 

[Joe Flacco]

The cause is market conditions for the product being different inside and outside of the beltway.

I don't know why you think that sentence has anything to do with construction quality. Anyways, no point trying to argue with you since you think that contributory value of a site is a valuation concept.

 

[gregb]

In most cases, a group analysis is the preferred method in my market area to establish if a location adjustment is warranted.

http://www.appraisers.org/docs/defa...support-of-a-location-adjustment.pdf?sfvrsn=2