I keep getting push back on this stipulation from a reviewer

[Tim Hicks (Texas)]

Why are we still responding to skippy's, err...deleted member's post?

 

[Tiffany Gibbons]

Per reviewer - The Gross Living Area Adjustment(s) $39.92/SF vary significantly from the average price per square foot of the provided sales ($323/SF)

Not sure how to answer this? GLA adjustment is $40 per S.F. How was my GLA adjustment supported? Everything is bracketed and its pretty clean report, but they won't let this go. Any suggestions or help is appreciated. What do you use to support your GLA adjustment?

You are adjusting the square footage difference only. Not the sales price including the land, amenities, car storage, age, condition, extras, etc. And you should support your adjustment somewhere in your commentary. How are you an appraiser and do not know this?

 

[Terrel L. Shields]

You are adjusting the square footage difference only

Adjusting for GLA requires only the gross living area contribution is used as a basis for determining the adjustment. So, land has to be extracted, outbuildings, pools and even attached garages must be subtracted from the mix. Once you boil down the stew to only the meat in the pot then a simple sensitivity analysis will determine a supported adjustment.

 

[Dublin ohio]

Why are we still responding to skippy's, err...deleted member's post?

After looking at the grid that was posted. I'm surprised it was the GLA adjustment that caught their eye

 

[Terrel L. Shields]

After looking at the grid that was posted. I'm surprised it was the GLA adjustment that caught their eye

The adjustments for fireplace, for instance, impacts the property how? I mean $3k on a 400k home? Really? I quit adjusting for fireplaces 30 years ago. I couldn't justify it with regression. I could figure that it had to do more with the quality than the utility of the FP. I mean, a cheap prefab fireplace, vs a gas log fireplace or a real fireplace or an insert and fireplace. Cost is relatively high, but does the market return much in value that is quantifiable.

 

[Tom D]

AOnce you boil down the stew to only the meat in the pot then a simple sensitivity analysis will determine a supported adjustment.

I like the stew approach for simple minds. The stew is the sf price for the stew. Unfortunately, stupid reviewer, the grid asks for the cost of each vegatable in the stew.

I hope i have answered your question, in a simple way, for you to understand your flawed form thinking.

sincerly
Chef Appraiser

 

[Mile High Trout]

Reviewer is obviously incompetent. Ignore the request.

Defensive statement; My adjusted value indicators of all comps is within a very narrow $k range.

Show them an alternative non official grid example of the adjusted value indicators when applying a total ppsf figure. Suggest only an image snip lest they try to run that through the review system.

Then ask them if the $(total ppsf figure) represents the entire home, and if you apply that adjustment to size, where do the other adjustments come from? Because the output would then exceed the total price by sq ft figure.

This is the distributed proportional allotment argument; If all comps are similar, then the need for adjustment volume is diminished.

Three ranches, all 1,000 sq ft. All same age. All same feature. One has a deck the others do not. All you need is a deck adjustment.

Same theory if they're only slightly different in size. The price ranges from three ranches, 900 sf, 1,000 sf, 1,100 sq ft, all sold from $90,000 to $110,000 dollars. And there were no other differences. Obviously your adjustment range would be $20k max, and if your subject was in the middle at 1,000 sq ft, you'd only cut off one side of the adjustment margin, so your total adjustment would be $10k on either side. 100 sq ft difference, $10k market value deviation indicator = $100 psf adjustment.

Simplify the process. The reviewer is incompetent. Nobody adjusts the total ppsf amount into the sq ft line. That's the whole enchilada, if one did that, they'd have to ignore all other adjustments because they consumed their entire pie of available justifiable adjustment margin on one single adjust.

The total price variance between your subject and the high or low side of the market is your market adjustment limitation cap. Then distribute your adjustments accordingly with the simple principle of distributed allotment. Easy. Simple. Defensible.

Then tell the reviewer they're fired and have a conversation with their boss.