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What Method Do You Use For Making A Condition Adjustment?

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JR1972

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Oct 31, 2014
Professional Status
Certified Residential Appraiser
State
Wisconsin
My subject is in C2 and my comp is C3 and I was wondering what other people do to make an adjustment for this? Please do not tell me to find better comps, there aren't any. I have looked through the forums and everyone seems to go bonkers about age, effective age and condition and then it turns into a free for all. I tried Marshall and Swift, but they don't adjust for condition. Any help would be appreciated.
 

bnmappraisal

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Nov 9, 2011
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Certified Residential Appraiser
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Florida
I'll often times make an upgrades (updates) type adjustment instead of condition (separate line adjustment toward bottom of grid)
 

Mike Kennedy

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Sep 28, 2003
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Certified Residential Appraiser
State
New York
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Terrel L. Shields

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May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
everyone seems to go bonkers about age, effective age and condition and then it turns into a free for all.
I'm shocked that you would think our erudite discussions would degenerate into a brawl. :rof: In my opinion you cannot separate age and condition except mechanically, ie- straight line age

I would do a market extracted determination of effective age for the comps. Effective Age appears to be the best proxy for condition.
https://www.ipt.org/iptdocs/Files/Papers/2014AC/028Lennhoff.pdf
https://www.aicanada.ca/article/market-extraction-method-is-not-yet-obsolete/
and the best is Epley's article
http://pages.jh.edu/jrer/papers/pdf/past/vol05n01/v05p041.pdf
 

AMF13

Elite Member
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Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
If you can't dazzle them with brilliance,
baffle them with bullsh!!
This is what you remember 35 years after graduating Whatsamatta U. :peace:
 

Michigan CG

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Certified General Appraiser
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Michigan
I like Terrell's comments in post #3. I find that a $/SF adjustment works well although it needs explanation. Many times it can be derived with sensitivity analysis after all other adjustments are made.
 

Howard Klahr

Senior Member
Joined
Oct 4, 2004
Professional Status
Certified General Appraiser
State
Florida
. I tried Marshall and Swift, but they don't adjust for condition. Any help would be appreciated.
A) The Marshall Valuation Service is a cost based data source. As it is most commonly utilized to support development of an estimated replacement cost new in the cost approach and the depreciation calculation is performed subsequently, one would not expect condition adjustments to be contained within that data source.

B) There are various comparison methods (9 quantitative and 3 qualitative techniques) for the sales comparison approach in order to extract applicable adjustments for specifically identified characteristics, pick one.

In your evaluation of the subject YOU have rated the subject as a C2 and the comp as a C3. Why did you select those ratings? Those reason should guide you in the adjustment process. You have not provided sufficient detail to allow anyone to provide any specific assistance to your request.
 

Tom Woolford

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Joined
Nov 20, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Your market data will determine if an adjustment is warranted, and what it should be. Despite the best efforts to "standardize" quality and condition, the market simply does not function in that manner. I would not be surprised if there were no difference at all in the market analysis, given all other factors being equal.
 

CindyR

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
If you can't dazzle them with brilliance,
baffle them with bullsh!!

WOW - I have not seen that one in years. But it was our standard refrain back in my corporate (pre-appraisal) days. And I must admit the concept remains an option in my current endeavors ;)
 
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