Condition, Square Footage Adjustments

[NachoPerito]

The size of the house probably isn't the thing to focus on.

To get close you can take the land out of the sale price and then multiply by 0.5 or 0.6.

For example, a 2,000 SF house sells for $200/SF or $400,000. The land is worth $100k so the building is $300k or $150/SF. Then multiply by 0.5 to 0.6 and you get an adjustment of $75 to $90/SF.

This isn't a rule for all homes, but can be useful in a typical scenario.

 

[KEN SMITH]

The size of the house probably isn't the thing to focus on.

To get close you can take the land out of the sale price and then multiply by 0.5 or 0.6.

For example, a 2,000 SF house sells for $200/SF or $400,000. The land is worth $100k so the building is $300k or $150/SF. Then multiply by 0.5 to 0.6 and you get an adjustment of $75 to $90/SF.

This isn't a rule for all homes, but can be useful in a typical scenario.

This is what I was taught and it works most of the time. Some of the other methods expressed above seem kinda weird or complicated

 

[Joe Flacco]

The size of the house probably isn't the thing to focus on.

To get close you can take the land out of the sale price and then multiply by 0.5 or 0.6.

For example, a 2,000 SF house sells for $200/SF or $400,000. The land is worth $100k so the building is $300k or $150/SF. Then multiply by 0.5 to 0.6 and you get an adjustment of $75 to $90/SF.

This isn't a rule for all homes, but can be useful in a typical scenario.

I don't know about the multiply by .5 to .6 but getting to the price per SF of the improvement is a good way to look at it. I think the different ways of looking at it should tell a similar story.

 

[sputnam]

Do you apply different GLA adjustments to different comps? Again, I think that, in some situations, it may be appropriate - although I'd think those situations would be far and few between - as I'd think the only time it would be necessary would be when a sale is not truly a comparable (i.e. the GLA difference is larger than typical), but nonetheless - (a) you're just asking for a ton of headaches, and (b) the overall impact on the analysis is probably not worth the effort it would take to support the adjustment(s). To each his own, though.

I agree with that... Few and far between.

 

[KEN SMITH]

I agree with that... Few and far between.

Ok. Do you have a better and or simpler method?