Concession Adjustments

[BRCJR]

I do believe I was reading the question wrong, in hindsight.

I admit I made a mistake. I am inclined to agree it is not required to place a 0 in the sales grid on the adjustment line.

 

[GA Benny]

Page 30 of the UAD appendix D:

+(-) $ Adjustment


If a feature or aspect of the subject property differs from a feature or aspect of a comparable property and the appraiser determines that no adjustment is warranted, the appraiser must enter a zero (0) in the adjustment line. The zero (0) will indicate to the reader/user of the report that the appraiser considered the difference and determined that no adjustment should be made. When the features for the subject and comparable sale(s) are the same and no adjustment is warranted, leave the field blank - do not enter or default to zero.

This is where you must interpret the guideline. Since the concessions are not a feature or aspect that is compared to the subject, is it exempt from this rule?

 

[J Grant]

The implicit sale of subject for the SCA never has concessions...(even if concessions are present in a subject purchase contract). Therefore there is no difference between subject and comps when comps have no concessions, thus, no zero

 

[GA Benny]

The implicit sale of subject for the SCA never has concessions...(even if concessions are present in a subject purchase contract). Therefore there is no difference between subject and comps when comps have no concessions, thus, no zero

I might agree but on the other hand, the justification for putting a zero for the adjustment is to let the client/reader of the report know that an adjustment was considered but not made. Whether "required" or not, may be good practice. Its all grey area, so probably no right or wrong answer.

 

[J Grant]

What is there to consider? The subject has no concesion, comp has no concession

 

[GA Benny]

What is there to consider? The subject has no concesion, comp has no concession

But the question is if there is a concession but you are not making an adjustment.

 

[J Grant]

In that case I would put a zero

 

[hastalavista]

I might agree but on the other hand, the justification for putting a zero for the adjustment is to let the client/reader of the report know that an adjustment was considered but not made. Whether "required" or not, may be good practice. Its all grey area, so probably no right or wrong answer.

I would agree with you (for UAD compliant reports).

There may be a concession of $900 that was negotiated after the purchase price was set and not related to the property but some unique situation of the transaction (title company delayed something due to an error on the title company's side; buyer got mad and was going to walk, seller tells buyer they'll pay for the title insurance in full to keep the buyer from walking). That's a concession that I explain in the report but wouldn't adjust for in the grid. A "zero" for that makes sense.

 

[J Grant]

If a concession was present in a comp and we believe it has no affect on price, then we can put a zero ( no adjustment), but along with that the concession amount would be entered in concession line