Net/Gross Adjustments - greater than 100%; is this possible/acceptable

[Lindseyw]

Use the best available. Do buyers look at gross and net adjustments when they look at alternative properties to buy in your market? If a typical buyer could not get your subject, what would they look at next most likely.

Buyers usually don’t understand gross/net adjustments. Sometimes there are no options but properties that are non-comparable. Hopefully the appraiser knew the area but I’ve had to use some rough comps and max gross was in the 40% range for gross adjustments.

 

[Terrel L. Shields]

everal local realtors reveals that the "excess land" essentially has little

Find large sites and use to estimate the land value. If comps are on smaller sites, find sites that are small and estimate the comp values. Make a dollar for dollar adjustment because land does not depreciate, only change in value. I'd take an agent's word with a grain of salt. Space has value.

 

[ZZGAMAZZ]

Find large sites and use to estimate the land value. If comps are on smaller sites, find sites that are small and estimate the comp values. Make a dollar for dollar adjustment because land does not depreciate, only change in value. I'd take an agent's word with a grain of salt. Space has value.

The subject is 39 acres. The largest sale of vacant or improved land within 49 sq miles (7 mi x 7 mi) and 1000 days is 5 acres. (And I'm not sure how to determine the negative implications of the HUGE boulders strewn throughout the subject lot).

 

[Sadie]

reviewing a very detailed appraisal for an ATYPICAL property... what are your thoughts???

subj is a 10,000 sf [signif above-avg GLA] historical 4-unit multifam dwelling that is also a premium riverfront property w/water view, has above-average amenities, and situated on abv-avg acres/site.

NOTHING like it -- even when search expanded 25 miles (also atyp for a high density area)

Subj has higher appeal as a SFR / estate home & is in a 1-unit SFR zone (2-4's = grandfth use) -> thus, 2-4 fam is indica to be H&BU

The val range for 2-4 fam units (typ sf = 1000-3000 sf) is 100k - 350k -> so subj's estim val clearly is an outlier

To complt SCA, this is what appsr did:
- blended a 16 comps/listings showing mix of "best local multis", at least one multi that was a similar riverfront prop, most comparable "SFRs" in both muni and/or were similar waterfronts, at least 1 SFR that possessed sim GLA
- result is a "range of prob value"

However -- due to significant differences [in size, lot size, location, amenities, etc.] this resulted in some comps having gross/net adjustments 100%-200%; as part of review -- I've researched what comps were avail the OA appsr and generally agree with those selected, as comp data is a) limited and b) due to subect's atypical combo of value impacts

Given the above-- are such [high %] adjustments reasonable?? Has anyone run across a situation/instance like this?

I think you answered your own question. You did the research and found the same information as the OA. The only issue you have are the high % of the adjustments. Fannie/Freddie and USPAP don't care about the % amounts. You seem to have found the report credible so why do you care?