GLA Adjustments

[OG80]

Did the GLA of $257.92 a sf come from RE agent GLA where they add in the land - it just seems high for a 450k avg price range where half of more of the value is land and workshops? Idk, I can not see the comps the quality or what they cost to build new.
Overall suggestion - I like to start out with smaller adjustments and see what develops and then enlrage the ones that need it per data and results , rather than start out with large aadsjumns throwing values all over the place and them maybe have to scale down -

I do small acreage equestrian zoned ( some folks do not keep horses they just like the acreage and privacy) land contributory value is often far lower per acre for developed properties then it is per acre of vacant land sales.

It's what MLS reports

 

[J Grant]

It's what MLS reports

MLS reports sf as inlcuidng the land many times and thus can be much higher than the contributory value per sf appraises derive.

 

[J Grant]

I appreciate the clarification and comments. I haven't turned in the report yet so I can take out Comp 1.

Take it out if you want but IMO comp 3 seems more out of whack with such smaller acreage- why did comp 1 sell for less?
The fact that it has larger acreage, the adjustments you are making per acre can be too high - or the quality of the dwelling of comp 1 is low - i can not possibly know that of course but you can know it

 

[Fernando]

Let me respond to your comments please.
A % of GLA is common where I am from.
So, if sf adjustment is 'high' in your opinion, give me a % you feel would be better.
The market (went out further, etc) is declining. 16+%
If you look (know) barns (it's really for the Wkshop/Barn) then they can certainly be different. One has 3 bays, one has 1 I believe. One is newer. Barns/Wkshops are all different. You can't just say they are all the same $$$.
Cost To Build is $98/sf.
"weird small garage adjustment" - its for a carport.
Land adjustments are taken from sales 2.5 mile radius of subject. Can't get any better than that imo.
Sometimes, people have to sell and sometimes people get a great deal. It happens. I can't make it up. So, how would you adjust?
I just did a quick AVG of GLA's within 6 miles on 2+ acre lots and the Avg GLA is $257.92
There are a LOT of comments on here, but not a lot of solutions / help. Just saying it's easy to get on here and tell them how bad their doing and not offer anything that may prove to be helpful. Just sayn....

That's interesting.
I never use % of GLA.
I use % for condition differences. Never been called out.

 

[J Grant]

Take it out if you want but IMO comp 3 seems more out of whack with such smaller acreage- why did comp 1 sell for less?
The fact that it has larger acreage, the adjustments you are making per acre can be too high - or the quality of the dwelling of comp 1 is low - i can not possibly know that of course but you can know it

try lowering the price per sf to $75 a sf just to see what happens ( you can always change it, and try the $ per acre contributory value much lower than you have and see what happens - your adjusted range should become more narrow after applying adjustments instead of bigger which is what is happening now.

 

[Fernando]

try lowering the price per sf to $75 a sf just to see what happens ( you can always change it, and try the $ per acre contributory value much lower than you have and see what happens - your adjusted range should become more narrow after applying adjustments instead of bigger which is what is happening now.

Yeah, I do that and see if it really make significant changes to appraisal value.
Appraisal is an Art.

 

[J Grant]

Appraising is not rote, even if the software companies or those demanding proof want it that way—the reality is that the RE market is not always a formula.

Sometimes, more acreage does not command more $ for various reasons.

adding that MLS price per sf, they often divide the sale price by sf of the house ( that is what it is so high )

 

[Zoe]

Appraisers use these services to do Sales Grid adjustments, without understanding what they are doing. You can see that from the questions that come into this forum. They have no idea how these services calculate the adjustments. And believe me, even Zillow with its high-paid engineers, can get things wrong - probably because the engineers don't understand WTF is supposed to happen with adjustments. I betcha, in many cases, the time adjustments are screwed up, not so much perhaps taken in isolation from other features, but features have overlap, time overlaps with all other features, I would bet that at least from time to time they are indeed getting time adjustments messed up. I know this because I see multi-million-dollar homes that I appraised several years ago, with prices that take off into the outer space, which indicates mistakes are being made, big mistakes.

The appraiser must obtain statements from the services regarding the algorithms they are using and promise to be notified of any changes to these algorithms. Not just that they are using multi-linear regression, but also how they are utilizing the model provided by the statistical analysis tool to calculate the adjustments. They need the model and the code that performs the adjustments. You should be able to answer, as an appraiser, how the adjustments were calculated for a given comparable.

You know, you DO know, the whole system is screwed up. And the GSEs sit back and let it happen - Well, they clearly are not doing their job. They know it. And their excuse is? Reality? They don't need more than 5-10% accuracy, because it's not that important to them ---> "all in all." They have credit checks, they rely more directly on the purchaser's income than the property value. Sure, they do get screwed over at times, but they can take the loss; Well, as long as the taxpayer can rescue them if they get into deep ****. And so, that is the way it is.

It's a frigging mess. There is, in fact, no hope—except to replace the current appraisal system, lock, stock, and barrel.

But the world is changing. Times are going to get very, very hard; the economy may collapse in another 10 years or so.

Are you selling something? Do you realize how every piece of real property is very unique?

 

[Fernando]

Are you selling something? Do you realize how every piece of real property is very unique?

Hey Zoe I heard the lady who owns In&Out is moving from CA to Tennessee.
Got me curious....is Tennessee a great place to raise a family or tax savings?

 

[Zoe]

Appraising is not rote, even if the software companies or those demanding proof want it that way—the reality is that the RE market is not always a formula.

Sometimes, more acreage does not command more $ for various reasons.

adding that MLS price per sf, they often divide the sale price by sf of the house ( that is what it is so high )

Just go find new comps. Tell them these comps were not good. Surely one or two of them were good.

The market condition adjustments really bother me. Fed is talking about possibly lowering fed funds rate due to weak housing market.

These were recent sales and I don't don't know subject market.