Percent adjustments

[zydeco2go]

Over my many years appraising I have treated a percent adjustment this way. Example: Comp #1 ($400,000 sale) is inferior to subject lets say 10% a + adjustment of $40,000 is made, Comp #3 ($400,000) is 10% superior and my adjustment is -$36,364 not $40,000 as that is proper math. Many (nearly all) appraisals that I review dont use proper math Im thinking, or perhaps Im all wet here. Ive never second guessed this until now, hmm maybe Ive lost my mind.

 

[Mr Rex]

I think you have slipped a gear with your "proper math" unless you want to share how 10% of $400k is both $40k and $36,364 because of an inferior/superior adjustment. As my high school math teacher demanded, show your work, at least you get partial credit.:icon_idea:

 

[Riick]

?? I am confused, why the $$ difference between + and - adjustment ??
Why is that proper math ?

/

 

[AlwaysLearning]

Over my many years appraising I have treated a percent adjustment this way. Example: Comp #1 ($400,000 sale) is inferior to subject lets say 10% a + adjustment of $40,000 is made, Comp #3 ($400,000) is 10% superior and my adjustment is -$36,364 not $40,000 as that is proper math. Many (nearly all) appraisals that I review dont use proper math Im thinking, or perhaps Im all wet here. Ive never second guessed this until now, hmm maybe Ive lost my mind.

Your last sentence must be true, unless you do show this "proper math".

 

[Hamlet]

Don't you mean that $360000 is what the superior comp would adjust to after taking off the 10% (400000 x .10 = 40000. 400000 - 40000 = 360000)?

 

[AlwaysLearning]

I think that only a mortgage broker (or LO) could come up with this "proper math"

 

[Elliott]

You don't ask buyers and sellers how they see adjustments?
Do they say, "One of the properties was 10% better." Or do
they say, "That property was in an area that has prices $25,000
higher."

 

[jimmyfrank]

Over my many years appraising I have treated a percent adjustment this way. Example: Comp #1 ($400,000 sale) is inferior to subject lets say 10% a + adjustment of $40,000 is made, Comp #3 ($400,000) is 10% superior and my adjustment is -$36,364 not $40,000 as that is proper math. Many (nearly all) appraisals that I review dont use proper math Im thinking, or perhaps Im all wet here. Ive never second guessed this until now, hmm maybe Ive lost my mind.

You ain't that good at reading the market; you are trying to be too precise in your adjustments.

 

[biker4ever]

me thinks you are just adjusting across the board....

 

[Walter Kirk]

Adjustments should reflect market reaction. I don't think that I have ever heard of a buyer requiring anything other than a round number adjustment.