• Welcome to AppraisersForum.com, the premier online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

How To Calculate GLA Adjustments?

Status
Not open for further replies.
S

Sbps30

Sophomore Member
Joined
May 22, 2013
Professional Status
Licensed Appraiser
State
California
I was wondering how other appraisers determine the GLA adjustments on single family and condo appraisals. I have been using general adjustments according to the region. Recently I got a letter from Fannie Mae saying that I can't have general adjustments for all my appraisals in the region. How do you all come up with appropriate adjustments for GLA and do you have to do research for every appraisal you do?
 
I use Aggregate sales analysis (which generally is unreliable but all rocks have to be turned over) as well as paired sales analysis. This will get me in the ball park, and sensitivity analysis on the grid will get a final number. Generally I don't bother with small adjustments as they are statistically insignificant, and even larger differences sometimes don't really have a statistically significant result. I know some appraisers feel compelled to make an adjustment for GLA regardless of how large or small it is. But if potential buyers don't seem to give a crap about a 100s.f. difference, than why should I. There is such a thing as being overly accurate, and it generally isn't credible.
 
Tom Woolford said:
I use Aggregate sales analysis (which generally is unreliable but all rocks have to be turned over) as well as paired sales analysis. This will get me in the ball park, and sensitivity analysis on the grid will get a final number. Generally I don't bother with small adjustments as they are statistically insignificant, and even larger differences sometimes don't really have a statistically significant result. I know some appraisers feel compelled to make an adjustment for GLA regardless of how large or small it is. But if potential buyers don't seem to give a crap about a 100s.f. difference, than why should I. There is such a thing as being overly accurate, and it generally isn't credible.
Click to expand...
:clapping: :clapping: :clapping:
 
 
a friend of mine got the same letter as every report she did was at $55 psf. gotta change that up to stay ahead of the man!
 
We have a formula.

Simplified, it is the following:

Average sale price of comps minus average land value of the comps divided by average Bldg SF of comps then multiple by 57%

Or more simplified:

Hey, the comps are selling for around $600k, land values are about $200k, comps are around 2500 SF, so the adjustment is $91/SF

We got the 57% ratio from a study of new home developments and analyzing the different sized plans within the development.
 
NachoPerito said:
We have a formula.

Simplified, it is the following:

Average sale price of comps minus average land value of the comps divided by average Bldg SF of comps then multiple by 57%

Or more simplified:

Hey, the comps are selling for around $600k, land values are about $200k, comps are around 2500 SF, so the adjustment is $91/SF

We got the 57% ratio from a study of new home developments and analyzing the different sized plans within the development.
Click to expand...

looks good but what do you do for condos?
 
Digger88 said:
looks good but what do you do for condos?
Click to expand...

We will estimate the land value ratio based on age and location of the condos. Almost always between 20% and 50% of the sale price.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com
Back
Top