I School Question: Which Appraisal Method Should Be Used With This Problem?

[anthonyb5615]

Comparable price # of rooms pool

1 $100000 5 No Rooms No POOL
2 $91000 4 No 4 ROOMS NO POOL
3 $96000 3 Yes 3 Rooms YES POOL

The appraiser estimates that each bedroom has a worth of $10,000 and a swimming pool a worth of $15,000. Given the above information, what is the estimated value of the subject property using the average derived from the comparable?

I just need to known what appraisal method should be used to figure out the problem.
If comparable should be used should form version be used?

 

[Sid Holderly]

The above does not prove any pool value. Inadequate info. Any form or narrative works with the proper research and statistical support.
Inadequate info for a supportable answer.

 

[Terrel L. Shields]

unquantifiable judgment call?

estimates that each bedroom (pool) has a worth of $10,000

no, the appraiser estimates that the difference is $10k &15k between specific properties for those specific features.

 

[Howard Klahr]

just need to known what appraisal method should be used to figure out the problem.

This is part of the sales comparison approach. You did not provide room count or status of pool for subject property so its not possible to solve based on info provided.

 

[Tom Woolford]

Not enough info to calculate anything. Any adjustment based on that data is a WAG.

 

[J Grant]

Comparable price # of rooms pool

1 $100000 5 No Rooms No POOL
2 $91000 4 No 4 ROOMS NO POOL
3 $96000 3 Yes 3 Rooms YES POOL

The appraiser estimates that each bedroom has a worth of $10,000 and a swimming pool a worth of $15,000. Given the above information, what is the estimated value of the subject property using the average derived from the comparable?

I just need to known what appraisal method should be used to figure out the problem.
If comparable should be used should form version be used?

There is not enough information about the subject to recommend... How many sf is the subject, how many sf are the comps, quality etc. I don't mechanically assign a fixed $ amount to each bedroom and am not aware of appraisers doing so as a typical practice. (software usually does that, is that where you get it from? )

I'd question why 3 bedroom houses are being used as comparable along with 5 bedroom houses...but I am looking at it not knowing the subject or area. We try to use comps most similar to subject ( compare 3 bedrooms to 3 bedrooms). Or if the number of bedrooms vary, use similar sf/appeal. The scant information given above leads to questions rather than an answer.

I can tell you this: appraisals are about asking a series of questions and looking to the market for answers, each step of the process. ( in all the approaches). You repeat the process until the answers start to make sense and then you can reconcile them for the credibly supported value.

 

[devin]

Exactly, there's not enough information to make adjustments , when appraising comparable information as well as subject information is needed, in order to determine the contributory value of the adjustment assigned to that specific feature that needs to be adjusted. Due to lack of information, it's impossible to form an opinion of value with the information given.

 

[Elliott]

Paired sales analysis fails again, plus they give the appraiser "the list."

 

[devin]

Paired sales analysis fails again, plus they give the appraiser "the list."

We don't exactly know what th actual question entails, so it's hard to give advice, based on the information given

 

[Deleted member 134708]

$40k-$100k is subjects most probable price.