What are appraisal adjustments?
Keeping this in consideration, how do appraisers determine adjustments?
Adjustments are made to the comparable properties to show if they are superior or inferior to subject. The adjustments are calculated on the comparable properties, not the subject. If a comp sold for $180,000, then you will add or subtract adjustments to account for positive or negative features.
Likewise, how does an appraiser adjust for square footage? When all the square footage differences are added, averaged and divided by 200 square feet – the result is the difference in actual prices per square foot for two different time periods. The last difference column will result in a market extracted time adjustment per day (average).
Hereof, what are acceptable net adjustments on an appraisal?
Generally, adjustments should not exceed 10% for line items, 15% for net adjustments and 25% for gross adjustments. If any adjustments exceed stated guidelines an explanation must be provided including reasons for not using more similar comparable sales.?
What is a condition adjustment?
It means the overall quality, condition, location, view, etc. of that property falls within the definition of the rating range, but still may need to be adjusted accordingly to reflect the market reaction to the variances on a property-specific basis.