Bob, the percentage approach to concession adjustments I thought came more on the front end through mortgage origination approaches. Such as the buyers need closing cost assist of downpayment assist. Typically we can use a percentage there to be pretty close to the average figures for those pricing scales.
For adjusting the concession amount within the grid, proportional adjustments would not be appropriate if such concessions represented a straight line reduction of net to seller for every dollar that was concessed.
Hence, dollar for dollar is the only way to go.
If I'm doing a concession adjustment, I assume net to seller reduction, and dollar for dollar is the only honest adjustment which properly depicts the market reaction. The market being the seller, the reaction to being asked to take less is an exact reduction in net, from the concession. Dollar for dollar is the only appropriate adjustment to use for typical seller concessions.
Lee, you should quote your article on this matter more often. It's relevant and a good read. "Today, tomorrow, and yesterday"; concessions apply in whole. Or something along those lines.
Face the facts; Any leeway appraisers are given or proposed to be given through flexible analysis process is merely a backstop for lenders to push deals through the door when otherwise honest math hinders the process.
To adjust dollar for dollar concessions in typical residential markets for mortgage lending considerations, or not to adjust dollar for dollar concession in typical residential markets for mortgage lending considerations.
If anyone cries about my dollar for dollar adjustment approach, they can cry to me like those aggressive predatory lenders used to, and vainly try and convince me that a dollar given in concession does not result in a dollar less in the pocket of the seller. As if.....
