Need help on 2-4 unit appraisal

[buell007]

I need some help in determining the appropriate method to determine the value per unit, value per room and bedroom at the bottom of the comparable grid on page 3 of this report, small residential income property appraisal report. Are these values supposed to be the median, average, or just my opinion of which comparables were most similar in determining this value? I cant seem to find any references out there and all my sample reports I have pulled off of other appraiser websites are all done completely different. Are there no rules here? Just want to know the correct way to do this if any. Thanks!

 

[Michigan CG]

Analyze the comparable properties' value indicators along with property shortcomings, benefits and features and just like single-family appraising, measure the data to determine an opinion of Market Value.

Do not use medians or averages to define market value. You might be a little over your head here.

 

[Kevin Mc]

just my opinion of which comparables were most similar in determining this value?

That will work.

 

[ZZGAMAZZ]

I use ACI and always wondered why those cells didn't auto-fill...and then I started filling them in myself and it was remarkable how each cell when factored by the respective physical characteristics, e.g., rooms, gba, bedrooms, etc., nearly always equaled the opinion of value established by the GRM...kinda like the chicken and the egg in the same nest with the chicken asking "who gives a f....?"

 

[CANative]

The fannieform does not calculate the price per unit, room, etc. correctly because it does the calculation based on the adjusted sale price of the comp divided by it's own number of units and rooms. This is incorrect because after adjusting the sales prices for differences between the subject and the comps the comps "become the subject."

To make the correct calculation you have to divide the comps adjusted sales price by the SUBJECT'S characteristics (i.e. if the comp had 3 units, sold for 200k and adjusted to 300k and had 12 rooms - but the subject had 10 rooms - you would divide the 300k by 10 rooms not 12 rooms)

Example: correct - $300k / 10 rooms = $30 per room. incorrect $300k / 12 rooms = $25 per room.

If the subject and the comps are all very similar or exactly the same, the calculation error will not be apparent. But if there are a lot of differences in these characteristics then the error becomes obvious.

This must be carefully explained in the report.