Sales Grid Adjustment Comments

[DWiley]

Maybe million dollar homes in Ohio sell for that range but based on fannies charts and the typical sale price to GLA in ohio , they are doing a straight price to GLA analysis.

I had a condo in Ohio where the appraiser was using the $40/SF that his mentor taught him, even though the data in the report itself clearly indicated it should be about $275 - $300/SF (pretty easy to do sensitivity analysis when you have condos with the same room counts varying only by size). At the original $40/SF the indicated values extended over a $150,000 range. Using the rate indicated by the sales data in the report the indicated value band was reduced to less than $20,000.

Fannie has never suggested using any specific adjustments or adjustment rates. What they have said is to have actual market support and not rely on 20+ year old rules of thumb.

 

[timd354]

I had a condo in Ohio where the appraiser was using the $40/SF that his mentor taught him, even though the data in the report itself clearly indicated it should be about $275 - $300/SF (pretty easy to do sensitivity analysis when you have condos with the same room counts varying only by size). At the original $40/SF the indicated values extended over a $150,000 range. Using the rate indicated by the sales data in the report the indicated value band was reduced to less than $20,000.

Fannie has never suggested using any specific adjustments or adjustment rates. What they have said is to have actual market support and not rely on 20+ year old rules of thumb.

I appraised a very high end condo unit in DC where the GLA adjustment was in $650/sf....I remember that the UW had a tough time wrapping her head around that one but that amount was easy and and obvious to defend and as soon as the chief appraiser looked at my report, it was approved. I also remember thinking at the time that I am sure some clueless appraisers would have used a GLA adjustment of $30 or $40/sf because that is the amount that they always used for a GLA adjustment.

 

[djd09]

$275 - $300/SF

Where? There is no 300 per square foot in ohio.

 

[djd09]

My house is about $400k with 1350 sf GLA. That's $296 sf according to your suggested adjustment calculations

That is according to Fannies suggested adjustment calculation. Not mine. I do not just divide the price by square footage.

 

[DWiley]

Where? There is no 300 per square foot in ohio.

You may be right. The report I looked at had comps selling between $474/SF and $539/SF. That's certainly NOT $300/SF
Small condos in big city.

 

[timd354]

You may be right. The report I looked at had comps selling between $474/SF and $539/SF. That's certainly NOT $300/SF
Small condos in big city.

I know that there are condo projects in Columbus that have had units sell for over $500/sf. You would think that an appraiser in Ohio would be aware of that.

 

[residentialguy]

That is according to Fannies suggested adjustment calculation.

Where did they suggest that? I just saw an example.

 

[Artemis Fowl]

 

[Mr Rex]

Fannie couldn't find Fannies fat arse with both hands on her hips, but we as a civilized society we are in her hands. Hope and Change 2017. Make America Great Again.

 

[djd09]

Nearly 95% of comps analyzed had net adjustments less than 15%, suggesting that appraisers strictly adhered
to the net adjustments guideline. Fannie Mae’s concern is that the adjustments might be artificially low.

https://www.fanniemae.com/content/announcement/ll1502.pdf

Page 5. Graph median price per square foot. Fannie vs appraiser.

What is fannies adjustment?