Sales Grid Adjustment Comments

[ucbruin]

That is a prime example of "stir the pot". What does my post (that you quoted) say after the first sentence?

Tweak the boilerplate...
Explain the boilerplate...
Provide names of the countless number of agents/sellers/buyers one has spoken to....
List the addresses of the thousands of properties one has appraised and used as comps to show support for the adjustment....

At least you don't deny it's boilerplate....


**********************************************
↑
"I have completed market research to determine if, given the level of GLA adjustments used, bedroom counts between four and more bedrooms should command additional market adjustment from a measurable market reaction. Measurable market reaction from the available market data could not be extracted, therefore no adjustment is made." Such a statement might be taken to mean the appraiser involved didn't just pull a bunch of boilerplate out of their tail feathers versus actually attempting to answer the question about the market preferences.

"That's a great boilerplate, Webbed!"

I guess someone hacked your account for 1 post....

 

[Randolph Kinney]

Unless it's climate they are observing.

Climate is not observed; it is seen when the historical data is faked (adjusted).

Sort of like regression analysis that has data included or excluded so that the trend and adjustments are observed.

 

[Terrel L. Shields]

Unless it's climate they are observing.

Hide the decline, the dog ate my SD card, give it to the university because they don't have to give it up under FOIA even though it was public funds and originally public info...

This is one I am working on today.

Adjustments

Market Conditions- All sales are within the past eight months and within a range that is not different statistically from the change in value over time.

Conditions of sale- No adjustment made and all appear to be arm’s length transactions

Location - No adjustment required as they are similar economic areas within 10 miles.

Land Value - Dollar for dollar from Cost Approach
Dwelling

Age-Condition - Adjusted from sensitivity analysis or paired sales. All the sales were similar effective age (condition). Ages varied but all were either remodels, or 50+ years old with remodeling and or updates. No adjustment was made therefore for "age" (effective age- condition).

SF adjustment - Adjusted from sensitivity analysis, see spreadsheet on previous page. SF adjusted base based at $35 per SF.

Quality - Note that #2 was a high end home built by a lumber company owner. It has features that were superior to the subject and other sales. Therefore, I made an adjustment for quality which seemed reasonable in light of the SF adjustments typically being 40 - 60% of the depreciated cost new. Therefore, by sensitivity I determined a $50,000 adjustment by keeping the indicated $35/SF adjustment at the same level while testing in $10,000 increments. The equations balanced at $50,000. RCN of # 2 would be $30-40 per SF higher than the other sales thus I also examined the depreciated cost new as a basis for supporting the sensitivity analysis. These three items above appear to be driving the contributory value of the property dwelling. Fireplace, bathrooms, etc. do not appear to impact the value and no adjustment was made.

Building Contribution - From cost approach extraction and paired sales/allocation. See Sales write ups. Note Sale 2 contains an arena, and horse barn facilities and is superior to the subject and all the other comparables in terms of farm buildings. There is also paved driveway, entry gate, etc. We have adjusted based on extraction and depreciated costs.

I weighted Sale 2 as the most proximate and I weighted sale 3 as the most similar dwelling and barn property. I gave less weight to sale 1 since the design is dissimilar. Therefore, I estimate the value from the Sales Approach to be, say,
​

 

[residentialguy]

At least you don't deny it's boilerplate.

Nothing wrong with boilerplates. Everyone uses them. All my reports have my name on it already. Why would I type it in every time??? The problem comes when the boilerplate is not adequate or it does not represent the correct situation. Skippies often use generic templates that don't give adequate analysis. That's where the criticism comes in.

 

[residentialguy]

I guess someone hacked your account for 1 post.

Or he is a friend of mine and I was just kidding with Barry


Now, back to OP topic. You've deflected enough with non-helpful posts.

 

[ucbruin]

Or he is a friend of mine and I was just kidding with Barry


Now, back to OP topic. You've deflected enough with non-helpful posts.

Were you????

 

[djd09]

"No adjustment was made due to lack of market data, verified data, or conflicting market data."

Does that blanket it all?

 

[BarrySW1963]

Just like the cost approach to value, you are to state your source so that the client or other intended users can reproduce your results.

Depreciated cost is one method to use to adjust items.

Yes, but numerous examples can be found that suggest/support that people are willing to finance multiples of the depreciated cost of something rather than pay out of pocket to put in something on their own. Meaning, they'd rather finance $5k in extra loan amount at small additional payment amount per month rather than cough up the $1633 the item will cost to put in after closing.

 

[residentialguy]

Were you????

Yes, I was kidding with him

 

[J Grant]

Yes, but numerous examples can be found that suggest/support that people are willing to finance multiples of the depreciated cost of something rather than pay out of pocket to put in something on their own. Meaning, they'd rather finance $5k in extra loan amount at small additional payment amount per month rather than cough up the $1633 the item will cost to put in after closing.

Because the $1633 is "real money", aka their own cash, rather than 5k spread over years with a few extra $ a month payment. That is how property flippers make so much profit, they put in 20k cost improvements and get 60k back in sale price . Depreciated cost is one of those impressive sounding things that in practice can be unreliable for the market reaction based adjustment.