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Supporting Adjustments

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Jason Cowan

Sophomore Member
Joined
Dec 12, 2002
Professional Status
Licensed Appraiser
State
Virginia
Does anyone know of any good articles, texts, etc for supporting grid adjustments and/or "market extraction"? I am a newbie, so any help would be greatly appreciated. Thanks for your time.
 

vargasteve

Junior Member
Joined
Jan 21, 2002
Professional Status
Certified Residential Appraiser
State
California
Talk with your mentor / look at DATA - it depends on YOUR location & market factors.

Most new appraisers as you are look for & how to make physical adjustments & how much. That does change depending on price range & location & market area. To exagerate - in Death Valley a pool is worth more than it cost's to build, but in Alaska its totally an over improvement and would most likely detract from the value. Most standard adjustments are minimal. Ideally, you don't make adjustments - you find great comparables. You don't want to make adjustmens, find great comparables - each appraisal will have a life of its own. Each house, location, orientation, and design, materials & so forth are a 'work of art' in a way. A good portion of the substancial factors involve market various details (condition, motivated seller, bad side of street/lake, traffic) that have greatly influenced the SP are not physical (call realtors & ask them the skinny on each comparable - you won't believe what you hear), and learn from your mentor how to translate those details into written explanations ( along with appropriate $ adjustments ) for the report reader's review showing how something sold over / under what its worth or other such details. Monitor inventory levels in your area & you'll see trends & keep your finger on the pulse of the market. On each assignment GET PERSPECTIVE - LOOK at the houses + LOOK at many comparables that you have no intention of using. LOOK at the houses that have sold that are quite different in the area & subject street that you'll never use in a report. LOOK at historical sales over the last few years in the close in area / street that will give you a perspective similar ( or better than ) some experienced appraisers. FARM the DATA, Farm the REALTORS, Farm the location & 'feel' the "appraisal force" from the good side of the universe. :D
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
go to www.magicnumbers.com!
 

Tony Lehn

Junior Member
Joined
Oct 28, 2002
Professional Status
Certified Residential Appraiser
State
Indiana
Try the book "Residential Sales Comparison Approach. Deriving, Documenting, and Defending Your Value Opinion", by Mark Rattermann, MAI, SRA. He is a well known instructor here in Indianapolis. It will definitely help to start figuring out how to look at the adjustments logically.
 

Michael T. Hiester

Freshman Member
Joined
Oct 8, 2002
Mark was my prelicensing instructor. Very knowledgeable and I recommend him as a reliable source. I am planning on reading this book as well.
 
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