Percent adjustments

[Kevin Mc]

Point being is that it would be the correct way to make a percentage adjustment if one chose to use one. Thats all, nothing more. So dont read more into it then is needed.

In my lengthy career of reviewing (25+), more often than not the appraiser who adjusts on a percentage basis will round the number off. They may round off to the nearest hundred,five hundred, thousand etc....It is usually explained in the report. You may not see that as the "correct way" but I view it as the reasonable and intelligent way. Telling me a home is $36,634 better or worse than the subject as opposed to $35,000 or $37,000 is just flat out absurd. I seriously hope you don't hammer away at appraisers in reviews with such nonsense.

 

[Terrel L. Shields]

Telling me a home is $36,634 better or worse than the subject as opposed to $35,000 or $37,000 is just flat out absurd.

I don't think the issue is the rounding. He simply pointing out that "10%" as an additive adjustment is different than as a negative adjustment using 110% as the denominator. 400,000 ÷ 110% = 440,000 and 110% ÷ 400,000 = 363,363...but that is not correct. I am sorry his math teacher led him astray. 10% LESS than 400,000 = 360,000. We are not working with fractions.

 

[Rlong]

I like the OP thinking, he can round all he (or you) wants after all the adjustments. I will likely stick with $400,000 X 0.9%, BUT I like looking at things like this from multiple perspectives. I believe both are correct (and that $400,000 / 1.1 for a negative adjustment might require a comment.)

Be open minded!

Bob in CO

 

[Kevin Mc]

This was put out there to see the response from my fellow appraisers and I am amazed on the quality of responses. I know that nearly all appraisers would adjust 40K each way and perhaps that is accepted in the market (still wrong). This is just appraisal math and nothing more is intended by this post. Think before you speak.

I like the OP thinking, he can round all he (or you) wants after all the adjustments.
Be open minded!

There will be no rounding, It is wrong. This is anal retentive mental masturbation. It is the equivalent of ironing one's underwear.