Besides age, sq. ft., garages, and lot sizes what other things do you make adjustments for and what amount do you use for that adjustment? Your input would be greatly appreciated!

Is there a specific bpo you have in mind?As far as adjustments the amount varies,you can have rooms of different square footage and also a comp 1/2 mile away the land could be worth 20 k more an acre.There is no one adjustment to fit everything.

Pools/spas, decks, outbuildings, location, surrounding properties... varies by property.

Number of bathrooms...usually about $8000 per bath. I make an adjustment for location if the subject property is on a heavily travelled route or close to a major highway and the comp isn't. That amount varies.

I think you all forgot the most important adjustment........... CONDITION.

[QUOTE]Member
Member # 10094

posted 06-04-2006 04:17 PM
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I think you all forgot the most important adjustment........... CONDITION

I do not think anyone forgot the most important adjustment. On the forms I have seen ,you do not adjust for condition. INSTEAD, you are asked to rate the property. For example: good,fair, poor,exellent ect. I enjoy taking some down time to share, learn and laugh a little too when I visit this forum. It seems like some people have nothing better to do but monitor all opinions and degrade people. This site is meant to be helpful. Absolutely nothing is accomplished with this approach. This reminds me of what I teach my children, "make decisions that make you feel good about yourself".........

Treebird...yes, you're right.

I also try to use comps that are similar in condition. Unless a subject property needs total renovation, condition adjustments aren't usually necessary.

On the competitive listings you sometimes have to adjust for the location of the listing agents head too... I haven't figured out quite how to explain that in the comments yet.

Gary - LOL! I love it when the most similar active listing is priced way over the value I'm giving the subject. Of course when you show that that comp's DOM is 9 months and most homes in the area sell in 2 months, I think they get it.

RealDeal, You're right.
Treebird- Even though you may have to classify the subjects and the comps as to their condition, that doesn't mean you don't have to factor in the condition differences in your adjustments. If a house is superior in condition, you have to subtract something from it's price to arrive at the subject's value, or add if the comp is inferior. While it's best to use comps that are in similar condition, that isn't always feasible, so you have to adjust for those differences. If you have two identical properties (subject and a comp), except the comp has a noticeably bad roof and sold for $100,000 you cannot just say its condition is fair and the subject is good, but still price the subject at $100,000. It would be worth more than the one with a bad roof. Condition DOES require adjustments, not just clicking a box...
Also, any extras that you think will make a difference in what someone would be willing to pay, like maybe fireplaces, basements, decks, fences, etc. You know your market and what people are looking for (or should, to do this type of work)- adjust for those things that seem to be especially important to the average buyer.

Zepher, most of us here understand exactly what you are saying. I was referring to the amount that you enter on the forms. Of course you adjust for all those factors. I didn't know I would have to break it down in counter parts to make my point. You really put it in a nut shell for everyone. I did not agree with Real Deals BREIF comment. Anyway, I am done with this topic. I need to get on with the day. Have a great one yourself!

Here is the list

Any Consessions for Sale price
Time adjustments (if within 6 months - None
Location - Cul de Sac, corner lot
SF of Lot
View
Condition
Age (if effective age exceeds 10 years)
Baths
SF of GLA (Dont adjust for rooms since that would double dip)
Central AC
Garage Spaces
Fireplaces
Pool, Spa

This is assuming that the comp is similiar

Hope that helps