phoebe33764
Sophomore Member
- Joined
- Sep 21, 2007
- Professional Status
- Certified Residential Appraiser
- State
- Florida
I have read close to 100 posts and reply's about market adjustments in our forum. Joyce Botts gives excellent responses to the subject. Being an appraiser in Florida as well, market adjustments are necessary. I do understand the concept however, what do you do with regard to making a market adjustment when there are more varibles than just market?
For example, the subject has 1850 sq feet and does conform to the subject in all aspects including size however, the closest sale to the subject is 2.35 miles away and 7 months old. Recent sales in the immediate area are present yet are not similar to the subject in size. There is a sale within the mi, not in the same subdivision as the subject, that has sold 8 months ago slightly larger than the subject.
Finding a matched pair is like looking for a needle in a haystack and to try and attempt a market adjustment when everything is "all over the place" seems sketchy and difficult to explain.
There is only one active listing in the neighborhood similar to the subject.
In the county the subject is located in, there has been an overall decline in sfrs as a whole of 10%. Because of the lack of sales in the immediate neighborhood, how can one make a market adjustment if the data is lacking?
I'm sure that I could find similar homes that have sold recently but I have to go at least 5 miles out (to avoid the market adjustment) but this is an FHA vs conventional appraisal.
Any suggestions? m2:
For example, the subject has 1850 sq feet and does conform to the subject in all aspects including size however, the closest sale to the subject is 2.35 miles away and 7 months old. Recent sales in the immediate area are present yet are not similar to the subject in size. There is a sale within the mi, not in the same subdivision as the subject, that has sold 8 months ago slightly larger than the subject.
Finding a matched pair is like looking for a needle in a haystack and to try and attempt a market adjustment when everything is "all over the place" seems sketchy and difficult to explain.
There is only one active listing in the neighborhood similar to the subject.
In the county the subject is located in, there has been an overall decline in sfrs as a whole of 10%. Because of the lack of sales in the immediate neighborhood, how can one make a market adjustment if the data is lacking?
I'm sure that I could find similar homes that have sold recently but I have to go at least 5 miles out (to avoid the market adjustment) but this is an FHA vs conventional appraisal.
Any suggestions? m2: