ucbruin
Elite Member
- Joined
- Mar 11, 2014
- Professional Status
- Certified Residential Appraiser
- State
- Massachusetts
Dateline: 03.26.2006
Opening post on "Your Thoughts On This"
I am doing a review and I was wondering what anyones thoughts are these comments:
ADJUSTMENTS:
Time: The comparables sales included in this report are considered the best available sales that this market area provides. Sales, which occur within a six-month period, are generally considered current. Sales past six months may warrant an adjustment. None of the selected comparables warrant an adjustment in this appraisal report.
Site Size: Subject and sales differ in site size. Adjustments are made based on a review of sales of similar sites in similar locations and adjusting for market recognized factors effecting utility. Modest site size differences do not warrant an adjustment as their utility to a homeowner is similar.
Views: Subject and sales differ in view quality. Adjustments are made based on comparisons of sales, using the matched pair sales analysis concept.
Design: Purchasers are more concerned with living area and livability than design. Design differences do not significantly affect purchasing decisions. For this reason, no adjustment is made for design.
Quality: Quality adjustments are made based on a review of the Marshall & Swift Residential Cost Handbook and analysis of sales of homes utilizing the matched pair analysis concept.
Age: The subject and selected comparables differ in actual & effective age. Age adjustments are taken from the Marshall & Swift Residential Cost Handbook's Depreciation Schedule. Updates are then taken into account to determine an effective age for the subject and all comparable sales. An adjustment figure is concluded after analysis of all related factors. Comparables with similar effective ages to that of the subject do not warrant adjustments.
Bathroom Fixtures: Subject and sales differ in the number of bathroom fixtures. An adjustment for bathroom fixtures is made based on $2,000 per full bathroom.
GLA: Adjustments for differences in finished Gross Living Area are market derived and are made in the amount of $30 per square foot.
Basement Area: No basement.
Heating & Cooling: Adjustments are made by utilizing electric baseboard systems as a base heating source. Forced air gas, oil or electric units are considered $1,000 superior to the baseboard systems. Wall or swamp air conditioners are given a value of $500. Central air conditioning is given a value of $1,000.
Garages/Carports: Garages are adjusted at the amount $5,000 per space and carports are adjusted at the amount of $2,500 per space in this market area.
Porches/Patios/Decks: These are not considered substantially valuable home features as recognized by the market. For this reason, no adjustments are made for such items.
Fireplaces: The market considers a fireplace or similar wood burning apparatus, to possess market value. Market data indicates a fireplace contributes $1,500 to overall value.
Fencing: No adjustment is made for fencing, as fencing is of minor consequence in a purchasing decision.
Outbuilding(s): Sales are adjusted for such buildings based on utility and the estimated value they contribute to overall market appeal of the subject or sales.
*The comparable sales used in this appraisal report are felt to be the best comparables available at the time of the inspection. Typically, It is very difficult to abstract an exact adjustment for additional features (landscape, views, and overall market appeal). Some of these additional features do not bring in a premium to ALL (majority) potential purchases, especially not dollar for dollar. If an appraiser can not do Paired Sales and abstract an adjustment, no adjustment can be proven or made, even if the upgrade visually enhances the property.
Post #14...
Does anyone else go into that much detail? Thats a lot of bla bla bla to me. I keep it short and simple. That much boiler plate might just confuse the underwriter. I think if the comps are good comps they don't need that much explaining. But then again I live/work in cookie cutter land.
jonathan
Post #16...
From what I can gather about the way this appraiser writes a report, is that he is attempting to make a one size fits all report. maybe adjusting his comments if he is forced to do so. I also could not figure out his references to M/S cost manual, what does that have to do with anything. The "market" should determine the value of individual components. I thank every one for their responses, they only solidified what I was thinking. And it was very insightful of the ones that pegged this guy as a newbie appraiser with a license. His history is 5 years in the buisness including is training period, don't know who his "mentor" was, but He has been in business for about 2-3 years. Works with AMC's and does try to cover his lack of knowldge with this boilerplate verbage. Thanks to you all, by the way as far as the report, the only adjustments he made were based on differences in square footage. The comps were identical to the subject, except minor square footage differences.
Post #18...
I use a very similar format in my Sales Comments, I use a bold font for each line item of adjustment and separate to make it easier to read. But, my comments are specific to the particular property. I kept waiting for a REAL explanation. Like Richard said, maybe in certain situations (cookie cutter world) this is OK. But if I have comps good enough for these type comments, then I don't really need comments, now do I?
https://appraisersforum.com/forums/threads/your-thoughts-on-this.103708/
I would venture to guesstimate a 51% v 49% opinion split regarding is this "boilerplate"....
And I'm not picking on Rex....
It's just coincidence....
Opening post on "Your Thoughts On This"
I am doing a review and I was wondering what anyones thoughts are these comments:
ADJUSTMENTS:
Time: The comparables sales included in this report are considered the best available sales that this market area provides. Sales, which occur within a six-month period, are generally considered current. Sales past six months may warrant an adjustment. None of the selected comparables warrant an adjustment in this appraisal report.
Site Size: Subject and sales differ in site size. Adjustments are made based on a review of sales of similar sites in similar locations and adjusting for market recognized factors effecting utility. Modest site size differences do not warrant an adjustment as their utility to a homeowner is similar.
Views: Subject and sales differ in view quality. Adjustments are made based on comparisons of sales, using the matched pair sales analysis concept.
Design: Purchasers are more concerned with living area and livability than design. Design differences do not significantly affect purchasing decisions. For this reason, no adjustment is made for design.
Quality: Quality adjustments are made based on a review of the Marshall & Swift Residential Cost Handbook and analysis of sales of homes utilizing the matched pair analysis concept.
Age: The subject and selected comparables differ in actual & effective age. Age adjustments are taken from the Marshall & Swift Residential Cost Handbook's Depreciation Schedule. Updates are then taken into account to determine an effective age for the subject and all comparable sales. An adjustment figure is concluded after analysis of all related factors. Comparables with similar effective ages to that of the subject do not warrant adjustments.
Bathroom Fixtures: Subject and sales differ in the number of bathroom fixtures. An adjustment for bathroom fixtures is made based on $2,000 per full bathroom.
GLA: Adjustments for differences in finished Gross Living Area are market derived and are made in the amount of $30 per square foot.
Basement Area: No basement.
Heating & Cooling: Adjustments are made by utilizing electric baseboard systems as a base heating source. Forced air gas, oil or electric units are considered $1,000 superior to the baseboard systems. Wall or swamp air conditioners are given a value of $500. Central air conditioning is given a value of $1,000.
Garages/Carports: Garages are adjusted at the amount $5,000 per space and carports are adjusted at the amount of $2,500 per space in this market area.
Porches/Patios/Decks: These are not considered substantially valuable home features as recognized by the market. For this reason, no adjustments are made for such items.
Fireplaces: The market considers a fireplace or similar wood burning apparatus, to possess market value. Market data indicates a fireplace contributes $1,500 to overall value.
Fencing: No adjustment is made for fencing, as fencing is of minor consequence in a purchasing decision.
Outbuilding(s): Sales are adjusted for such buildings based on utility and the estimated value they contribute to overall market appeal of the subject or sales.
*The comparable sales used in this appraisal report are felt to be the best comparables available at the time of the inspection. Typically, It is very difficult to abstract an exact adjustment for additional features (landscape, views, and overall market appeal). Some of these additional features do not bring in a premium to ALL (majority) potential purchases, especially not dollar for dollar. If an appraiser can not do Paired Sales and abstract an adjustment, no adjustment can be proven or made, even if the upgrade visually enhances the property.
Post #14...
Does anyone else go into that much detail? Thats a lot of bla bla bla to me. I keep it short and simple. That much boiler plate might just confuse the underwriter. I think if the comps are good comps they don't need that much explaining. But then again I live/work in cookie cutter land.
jonathan
Post #16...
From what I can gather about the way this appraiser writes a report, is that he is attempting to make a one size fits all report. maybe adjusting his comments if he is forced to do so. I also could not figure out his references to M/S cost manual, what does that have to do with anything. The "market" should determine the value of individual components. I thank every one for their responses, they only solidified what I was thinking. And it was very insightful of the ones that pegged this guy as a newbie appraiser with a license. His history is 5 years in the buisness including is training period, don't know who his "mentor" was, but He has been in business for about 2-3 years. Works with AMC's and does try to cover his lack of knowldge with this boilerplate verbage. Thanks to you all, by the way as far as the report, the only adjustments he made were based on differences in square footage. The comps were identical to the subject, except minor square footage differences.
Post #18...
I use a very similar format in my Sales Comments, I use a bold font for each line item of adjustment and separate to make it easier to read. But, my comments are specific to the particular property. I kept waiting for a REAL explanation. Like Richard said, maybe in certain situations (cookie cutter world) this is OK. But if I have comps good enough for these type comments, then I don't really need comments, now do I?
https://appraisersforum.com/forums/threads/your-thoughts-on-this.103708/
I would venture to guesstimate a 51% v 49% opinion split regarding is this "boilerplate"....
And I'm not picking on Rex....
It's just coincidence....
