Final Reconciliation

[Fritz in NY]

If you can find no matched pairs, I've always used "It has been common to market to adjust for a 1/2 bathroom for $2,500. in this price range x for many years. Due to lack of similar sales, no additional comparable was available to indicate that in current market.

 

[David Mescon]

Long time, no see, David. Glad to see that you are OK although it appears your testosterone levels may be a little high.

What you are saying is that your cost approach is X and your SCA is Y but your reconciliation is higher than both.

Most would argue that the adjustments YOU supplied were not adequate considering your value opinion was outside your adjusted range.

You could argue that you final value estimate was based on adjustments you didn't make quantitatively and rather left to the end to consider qualitatively.

In any event it is not common appraisal practice to opine outside of your adjusted values. But we all aren't rocket scientists.

Hi Mich. Good to be back. Thanks for letting me know about the chemical imbalance - it explains a lot. (I wonder if I can get a disability handout for it? LOL). The rocket scientist comment was in fact tongue-in-cheek. It is common among us lesser, (read non CGA) lifeforms to lack the ability to correlate adjusted values with a level of granularity around the .00002% range, as you suggest. Whether qualitatively derived, quantitatively derived or hybridized, neither I, nor any appraiser I have ever met, would be able to reliably assert with the aforementioned degree of accuracy, the opinion of value to which they opine is more correct as it is within the ubiquitous "range," than one which lies outside that range, but is actually closer to the value or range of values given greatest consideration therein. This has nothing to do with either qualification or quantification - it has to to with reliability, supportability and reasonableness. In the example I gave, I would consider the value to which I opined more reliable than one which was rounded down to the next lowest $5,000, but within "the range." Opining to a non-rounded value six or seven places to the right of a decimal point is almost always non-supportable in any meaningful way. Man, would we have fun in a courtroom! Stay on those toes, though As for this practice not being common, it is much more common than you think. Additionally, common appraisal practice does not equate to sound appraisal practice, as evidenced by the current financial condition rampant appraiser complicity and participation has allowed us to descend into.