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Unsupported Adjustment

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Opinions, thoughts, insight?

Review of an appraisal with $ 20,000 screen porch adjustment. Subject is a townhome with all comps in the subdivision. Sq ft. adjustment of GLA is $ 70 sq ft. GLA ranges from 1,000 sq ft to 1,700 sq ft. Subject does not have screen porch. Sq. footage of optional screen porch is approx. 100 sq ft. Price range for these properties range from $ 210,000 to $ 265,000. $ 20,000 for a screen porch??? What am I missing here? There isn't a full kitchen or a fireplace, just wood and screen.
 

Michigan CG

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Probably added an extra zero and didn't check it. Cut it to $2000.

And why would any appraiser make an adjustment that is less than 1% of the value?

If it is a $20,000 adjustment then we have another idiot in the industry. A logical person would conclude cost is significantly less.
 

CindyR

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Oct 26, 2003
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Arizona
Probably added an extra zero and didn't check it. Cut it to $2000.
I agree - probably just a typo but should certainly have been corrected. And yes, i would make such an adjustment. (The $2000 - not the $20,000)
 

Terrel L. Shields

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nd why would any appraiser make an adjustment that is less than 1% of the value?
Seen them make 3 or 4 down to $500. You might bet they needed to shrink the spread and couldn't think of anything else.
 

Riick

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Aug 14, 2007
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Delaware
Not the OPs decision to make, IMNSHO.

The MARKET is what supports the adjustment.
If that appraiser found that the spread between homes
with/without screen porches was $20k, then
(given that something else was not ignored) that is the correct adjustment.
Does $20k *sound* unreasonable? Yes.
Does that matter? No.

Top line Toyota with all the goodies costs $39,000
Virtually identical car with Lexus label costs $51,000
Does $12,000 sound like too much for the LLabel - Yes
Does that matter to the buyer who wants the silly Lexus - No.
 

Terrel L. Shields

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May 2, 2002
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Arkansas
$500 adjustments to shrink the spread? Anyone think about credibility and support?
He did $20K to pull in the spreads but there are tons of $500 -$1000 adjustments found in residential reports at least around here over the year.
 
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