Lot size adjustments

[Joe Flacco]

If possible please walk through the calculations, especially because they are improved properties. Also, all columns might not be dislayed here, bur the basis $/sqft of each isn't displayed.

Those are all land sales

 

[ZZGAMAZZ]

Those are all land sales

I double-checked the first few against generic online realtor sites--which confirmed the selling prices and lot sizes, but also descibed specific residential improvements...

 

[Joe Flacco]

I double-checked the first few against generic online realtor sites--which confirmed the selling prices and lot sizes, but also descibed specific residential improvements...

Yeah, but the improvements have no value. The improvements will be razed.

 

[ZZGAMAZZ]

Yeah, but the improvements have no value. The improvements will be razed.

Well, in my personal opinion, walking the AF gingerly through the process, possibly in less than six steps. would provie a hella lot of appraisers with an improved knowledge of Extraction---Allocation???--better than most CE courses.

 

[RCA]

Lemme dumb it down for my personal benefit: if the adjusted values of all comps in the SCA are identical, would Reconciliation need to be addressed, or any specific comparable property. or any specific factor, prioritized ["weighted'} above others?

One nice little thing about using MARS and the RCA approach, is that asking the appraiser to use different comps isn't going to change the value. All he can get are some new explanations about why different comps had different sales prices. MARS will be run on all frigging possible comps - hundreds or thousands if you want, and adjust all of them to the exact same price to the penny. The appraiser will have to go and break down the new comparables residuals into value components, but whatever he does, however he breaks down the residual for each comp, because the sum of the values of the residual value components (e.g. condition, quality of construction, functional utility, etc) must always equal the residual for the comparable, the adjusted sales prices will always be the same, and likewise the value conclusion from the SCA. So, much of your work is already done for handling any new comps the client might want. And, why would he want them if the values are not going to change - and you certainly are going to charge him for the extra work.

 

[ZZGAMAZZ]

One nice little thing about using MARS and the RCA approach, is that asking the appraiser to use different comps isn't going to change the value. All he can get are some new explanations about why different comps had different sales prices. MARS will be run on all frigging possible comps - hundreds or thousands if you want, and adjust all of them to the exact same price to the penny. The appraiser will have to go and break down the new comparables residuals into value components, but whatever he does, however he breaks down the residual for each comp, because the sum of the values of the residual value components (e.g. condition, quality of construction, functional utility, etc) must always equal the residual for the comparable, the adjusted sales prices will always be the same, and likewise the value conclusion from the SCA. So, much of your work is already done for handling any new comps the client might want. And, why would he want them if the values are not going to change - and you certainly are going to charge him for the extra work.

Presuming an OV based exclusively on the SCA, is the mathematical certainty of MARS compatible with the definition of an "opinion"?

 

[Tom D]

And of course, I am wasting my time telling this audience.

I do agree with you. If i only just understood what you were saying most of the time. And i'm probable one of the most appraisal savants on this site. There are a coulpe more smarter here than me. Saying that to keep some of you as friends.

Earth to mars, earth to mars. Sorry sir, brain not responding.

 

[ZZGAMAZZ]

One nice little thing about using MARS and the RCA approach, is that asking the appraiser to use different comps isn't going to change the value. All he can get are some new explanations about why different comps had different sales prices. MARS will be run on all frigging possible comps - hundreds or thousands if you want, and adjust all of them to the exact same price to the penny. The appraiser will have to go and break down the new comparables residuals into value components, but whatever he does, however he breaks down the residual for each comp, because the sum of the values of the residual value components (e.g. condition, quality of construction, functional utility, etc) must always equal the residual for the comparable, the adjusted sales prices will always be the same, and likewise the value conclusion from the SCA. So, much of your work is already done for handling any new comps the client might want. And, why would he want them if the values are not going to change - and you certainly are going to charge him for the extra work.

Question: Because of your absolute trust in the absolute certainty of the OV based upon MARS, do you literally express that sentiment in the reconciliation section of an appraisal report? On one hand it might be considered as unnecessary puffery, although OTOH the certainty that you profess--if indeed supported quantitatively--is revolutionary to the extent that I personally would make sure to put it in the face of a client who questions its accuracy. [Just curious because of what appears to be rare, "absolute" factor in an industry based on interpretations.]

 

[ZZGAMAZZ]

I do agree with you. If i only just understood what you were saying most of the time. And i'm probable one of the most appraisal savants on this site. There are a coulpe more smarter here than me. Saying that to keep some of you as friends.

Earth to mars, earth to mars. Sorry sir, brain not responding.

. . . calling oneself a "savant" while advising others that you're placating them by including them in your rarified status is damn interesting, but only if humor was intended--although your perspectives always enhance a topic IMO. The more n more that I interact with the AF, the less n less certain that I am about anything!!!