Conditional/quality Adjustments

[J Grant]

The kitchen is an example of what the entire house is like now. Completely redone, inside and out. The design includes significant exterior ornamentation and interiors that are well finished. The workmanship exceeds acceptable standards and many materials and finishes throughout the dwelling have been upgraded from “stock” standards.

So if you don't call that a Q3, then you aren't matching your ratings with the house

But it still is not the below...rating is not just about exceeds acceptable standards upgraded from stock.. And what is considered stock and what is considered above it goes up for each level too. An upgraded kitchen in a Q3 house in my area usually is even of higher quality and materials and design than your kitchen, or my own kitchen- I maxed out my budget on my kitchen, yet I know that would be a starter budget for a Q 3 kitchen upgrading., and a proper Q3 upgrading to a kitchen would cost easily 10k-30k more over what I spent. A Q3 buyer expects more at that level. I see a lot of it here....

Q3Dwellings with this quality rating are residences of higher quality built from individual or readily available designer plans in above-standard
residential tract developments or on an individual property owner’s site. The design includes significant exterior ornamentation and interiors
that are well finished. The workmanship exceeds acceptable standards and many materials and finishes throughout the dwelling have been
upgraded from “stock” standards.

What they call significant ext ornamentation I interpret it as a district architectural style on ext..because some expensive built contemporary homes are austere on the outside as part of the "look"..I am upgrading nearly everything I can in my own late 70;s av quality construction built home and I would always call my home a Q4, just at some point it becomes a highly upgraded Q4.

 

[J Grant]

The kitchen is an example of what the entire house is like now. Completely redone, inside and out. The design includes significant exterior ornamentation and interiors that are well finished. The workmanship exceeds acceptable standards and many materials and finishes throughout the dwelling have been upgraded from “stock” standards.

So if you don't call that a Q3, then you aren't matching your ratings with the house

But it still is not the below...rating is not just about exceeds acceptable standards upgraded from stock.. And what is considered stock and what is considered above it goes up for each level too. An upgraded kitchen in a Q3 house in my area usually is even of higher quality and materials and design than your kitchen, or my own kitchen I maxed out my budget on my kitchen, it would be a base starter budget for a Q 3 kitchen upgrading., the buyers expect more at that level. I see too much of it here....

Q3Dwellings with this quality rating are residences of higher quality built from individual or readily available designer plans in above-standard
residential tract developments or on an individual property owner’s site. The design includes significant exterior ornamentation and interiors
that are well finished. The workmanship exceeds acceptable standards and many materials and finishes throughout the dwelling have been
upgraded from “stock” standards.

What they call significant ext ornamentation I interpret it as a district architectural style on ext..because some expensive built contemporary homes are austere on the outside as part of the "look"..I am upgrading nearly everything I can in my own late 70;s av quality construction built home and I would always call my home a Q4, just at some point it becomes a highly upgraded Q4.

 

[residentialguy]

But it still is not the below...rating is not just about exceeds acceptable standards upgraded from stock.. And what is considered stock and what is considered above it goes up for each level too. An upgraded kitchen in a Q3 house in my area usually is even of higher quality and materials and design than your kitchen, or my own kitchen- I maxed out my budget on my kitchen, yet I know that would be a starter budget for a Q 3 kitchen upgrading., and a proper Q3 upgrading to a kitchen would cost easily 10k more and up over what I spent. A Q3 buyer expects more at that level. I see a lot of it here....

LOL...I did about $200k in upgrading. It is a Q3.

 

[J Grant]

LOL...I did about $200k in upgrading. It is a Q3.

To you it is...we agree to disagree many times...your original photo the house looks like it was bought as a project needing repairs and everything....if you remodeled the ext maybe...

 

[residentialguy]

Whole house, interior and exterior. High end exotic wood flooring, solid alder custom cabinets, high end marble/travertine bathes, solid doors, central sound system for every room in the house, including the 3 car garage. New smart siding and architectural roof. It's a 1500 GLA with finished upgraded walk-out lower level, vaulted main level, tray vaulted master bed with complete upgraded master bath. list goes on & on...

 

[J Grant]

Perhaps in your case yes... as I said there are always exceptions

In general though, the Q 3 houses are always supposed to be "better" than a Q4 house...what a Q house needs to become upgraded, might be the norm in a Q 3 house...in my area and in my experience

 

[RCA]

To you it is...we agree to disagree many times...your original photo the house looks like it was bought as a project needing repairs and everything....if you remodeled the ext maybe...

Isn't it obvious that Qn, Cn doesn't work? Define the market area. If you have geographical competence, you should be able to look at any house, even if it is only MLS pics and and rank it as percentage better/worse in the neighborhood, within +/- 5%. In fact, if you have good regression software and can get your R2 up to around 70-80%, use the regression formula to predict the values for your comps. Then use the residuals to score the comps for CQA (Condition-Quality-Appeal ] 0.0 - 0.5 - 1.0 -...- 9.0 - 9.5 - 10.0. Then judge your subject's rank in the subject market area. Run a regression on the CQA scores against the residuals to get a function for CQA adjustments. Then use that to calculate the adjustment between the subject and the comps for CQA. Then figure out how to take your CQA and apply it to the Condition, Quality, View and any other subjective features. You can avoid the problem of the complex collinear relationships between subjective condition, quality, appeal, view variables and the objective factual variables of GLA, Lot Size, Bathrooms, etc... The method is straightforward, - IF you know your market area.

 

[J Grant]

Bert I don't need regression software to rank a house ! I look at it and inspect it and see the building materials and design, if available what was the original cost to build/price it sold for.

Buyers don't use regression analysis to tell them about a home.

Your program to develop adjustments might work well but since paired sales and line item sensitivity works very well and my years in the market informs me of buyer expectations, why would I need it....if it gets to the point clients only accept regression or computer stats to dvelop adjustments I'll deal with it then, at this point I can't see why I would devote so much time to it.If I had a free time period at some point I might though!

 

[Mr Rex]

Math guys answer to every question? There is a formula for that!

If the question is love between opposite sexes, 1+1 will eventually = 3 or more in most cases.

 

[RCA]

Bert I don't need regression software to rank a house ! I look at it and inspect it and see the building materials and design, if available what was the original cost to build/price it sold for.

It sounds to me that you have a very non-complex area to appraise in. I would guess you are doing relatively new subdivisions; otherwise original cost would be rather irrelevant. At the same time Cn/Qn will probably be more useful in making adjustments.

I work in complex neighborhoods of new to very old custom homes with varying degrees of remodeling over the years. My method is very objective up to a degree - until I get to the ranking of the subject property. That ranking must be done strictly on the subjective factors not considered in the regression to minimize error. There is a reason for using a good regression tool here - to minimize error, maximize objectivity in a very messy housing environment.

The subject here is Cn/Qn. Does it work for you? Fine. If not, I suggest another approach.

But as far as I see, Cn/Qn is so useless, few appraisers make much use of it. Why did you make a $500,000 adjustment for a comp that was Q3 vs the subject that was Q3? Well, the appraiser says even though they are the same the comp was upper Q3. OK. But how did you REALLY arrive at $500,000? No argument.

Buyers don't use regression analysis to tell them about a home.

What does that have to do with anything? Regression creates a superficial model that shows what what buyers pay for different features, in varying quantities and combinations. A good model can capture not only tangible objective features, but intangible features such as appeal, view, quality and condition.