Weighted Average for Reconciliation of Sales Approach.

[Terrel L. Shields]

Ultimately, if the comps are equally similar, perhaps the weighted average provides a reasonable answer, but I'd rather eyeball it and decide which comp is the most similar, recent and proximate on my own...gross and net adjustments be damned. I don't know of any program that does all three.

Just finished a report today where the subject is landlocked 10 acres. Woods, surrounded by land. Zero comps in 2 counties that are landlocked. And I found several 10-acre parcels of woods that sold around $1,000 an acre. Can some computer program tell me how to adjust for the access issue? Inquiring minds want to know. I need it.

 

[Tom D]

as long as it's in the range of values why explain. now if at the high end. maybe explain. at the low end nobody cares. but then i have plenty of comps to use, big city, and my range is less than 10% most of the time with several comps being close in value. i sold houses, some of the stuff we do on appraisals has never been done by a buyer.

 

[Appraisal Solutions]

Ultimately, if the comps are equally similar, perhaps the weighted average provides a reasonable answer, but I'd rather eyeball it and decide which comp is the most similar, recent and proximate on my own...gross and net adjustments be damned. I don't know of any program that does all three.

Just finished a report today where the subject is landlocked 10 acres. Woods, surrounded by land. Zero comps in 2 counties that are landlocked. And I found several 10-acre parcels of woods that sold around $1,000 an acre. Can some computer program tell me how to adjust for the access issue? Inquiring minds want to know. I need it.

"Can some computer program tell me how to adjust for the access issue? Inquiring minds want to know. I need it."

No! At least not yet and I hope not ever...but I fear soon.

 

[Tom D]

Can some computer program tell me how to adjust for the access issue? Inquiring minds want to know. I need it.

no, but i got this to explain
The Appraising Residential Properties, 4th Edition, Appraisal Institute, "Other Quantitative Adjustment Techniques”, Page 344 further states: “…In instances where paired sales analysis is not conclusive, the appraiser may apply judgment to resolve the problem." The adjustments resulting from the appraiser's judgment is based on a study and understanding of historic or past buyer preferences. It further suggests that cost and depreciated cost data may be used with the appraiser arriving at the value contribution (not cost new) of certain features. The process of supporting the contribution of individual variables (features) is limited and often difficult to quantify, with adjustment deemed to be qualitatively supported unless otherwise addressed. All methods of supporting adjustments are usually limited by inherent uncertainties within the applications themselves.

an avm could never figure out you access either.

 

[Terrel L. Shields]

appraiser may apply judgment to resolve the problem." The adjustments resulting from the appraiser's judgment is based on a study and understanding of historic or past buyer preferences.

Exactly but it's flipped on its head since Covid lockdowns. Environmental easements are generally a negative since its future use is dictated by the easement. So it's going to be a double negative and a lot of explaining.