Q2 vs Q3 formula to adjust?

[jay trotta]

I would never rely on or consider anything assessor related other than size of the house.

You must Win every appraisal Tax appeal in your market area ??

 

[J Grant]

Following is the explanation I put in my addendum to support how I derive my quality adjustments..

Quality adjustments were derived via the following quality rating schedule per the Michigan SAB Cost Guides which the appraiser as a
former County Equalization Appraiser has used for years; these ratings are derived via Marshall & Swift quality/cost metrics which were used
to rate the quality of the improvements for both the subject and comparables. The quality adjustments in the grid are derived by applying
the percentage difference to the extracted value of the improvements which is redundantly supported by both the appraiser and the
assessor's opinion of quality. It is the appraiser's opinion that the quality rating of the subject's improvements was approximately a Q3 (or
per the MI SAB, a BC) which was the basis for determining the quality adjustments used (if applicable) in the sales comparison grid.

The above is an impressive sounding mess, sorry to say. It has enough official sounding verbiage that it has been passing the readers but it would not pass a forensic std 3 review ( assuming reviewer was competent )

The Q RATING can cite assessor Q schedule as one source ( though the Q rating is supposed to be the appraiser's opinion ). So if your opinion for the Q rating matches the assessors , then fine - explain.

But using the Q ADJUSTMENT derived from SAB cost guides is a problem.

 

[Zoe]

Use comparables, not adjustments.

i.e. if you can use Q3 comps, the better off you are.

yeah but the options are plentiful on cost/income/sales to support the adjustment. And it can be qualitative adjustment instead of quantitative. I am quantitative to my detriment. Quantitative analysis is excessively important in commercial appraisal analysis. And it is good. Qualitative is easier sometimes in residential.

 

[Michigan CG]

Or the experts on this site could provide a cogent supportable answer to the question....

Please chime in and answer the original question. You have a license.

 

[ucbruin]

Please chime in and answer the original question. You have a license.

Of all the forumites....
You of all people should recall....
That I'm a "By The Book" type guy....

I knew you couldn't resist!!!!

 

[Michigan CG]

That I'm a "By The Book" type guy....

You can do it. Pretend you are going to court and you have to defend this adjustment to a jury. Some people have given pretty good hints above. Surely you wouldn't tell the judge that you have a list of adjustments.

 

[ucbruin]

You can do it. Pretend you are going to court and you have to defend this adjustment to a jury. Some people have given pretty good hints above. Surely you wouldn't tell the judge that you have a list of adjustments.

Who should I pretend is the plaintiff????

 

[Rlong]

You have some good advice... You have to have a good understanding of the two ratings definitions. But, just spend some time with a cost book (less apparent when you use the online tools. Calculate the percentage differences between their ratings... KNOW some of these percentages. In my market I usually adjust 5% to 20 or even 25% for quality (with the high being rare, as this is really a different class, but would usually be because a needed it due to location or a bracketing issue. Quality tends to be one of the bigger adjustments in the grid so being familiar with the percentage of cost DIFFERENCES in the cost book (and your market) really helps

 

[J Grant]

The best supported adjustments tend to have multiple prongs of support, and how much weight or relevance to which arms of the support can depend. For example, Q 2 vs Q 3 shows X $ depreciated cost and YX $ in sales approach and interviewing agents shows a buyer reaction for Z$....reconcile it to best evidence and the gold standard is usually sales because cost formulas are good reference, but if $ from a cost formula is not returned in same percentage in prices , it is the market that speaks.

Reminder do not forget market exposure !! A value opinion, and an adjustment for Q or C is part of that opinion, is linked to a market exposure estimate.

If A Q2 house MVO is higher $ but it takes twice as long to sell as a Q3, house, that longer market exposure estimate must be part of the opinion to be credible.

 

[glenn walker]

Who should I pretend is the plaintiff????

Stacy Abrams