SALES COMPARABLE APPROACH
**all documents needed to comlete assignment are attached below
This assignment encompasses what you learned the past few weeks.
For this project, you’re required to fill out the attached fillable PDF form (all of the required fields are highlighted in blue) and summarize your adjustments and findings in the fillable Word Document attached below.
More details you’ll need to complete the project:
Sales Comparison Approach (attached below. AP2_Grid blank-3 copy): All fields highlighted in the PDF are required to be filled in.
ADJUSTMENTS: Remember that you’re making adjustments based on making the comparable similar to the subject. For example, if the Subject has a Pool/Spa and the comparable does not, adjust the comparable with a positive (+) adjustment to show the effects of the pool/spa on market value and to make that sale comparable to the subject property. Make adjustments based on the following information (for this caliber home in this market):
*If there is a difference in a line item but you determine that an adjustment is not warranted, put a zero (0) on the line item.
*Round adjustments to the nearest $500.
*Assume that property values are stable and demand/supply is in balance.
*Location: For adverse locations, typically those with neutral (N) locations are adjusted negatively ($5k+) to show the effects on market value.
*Site: Typical adjustments are $2.00/sf when there is a +/- 2,000 sf difference in site area.
*Age: Typical adjustments range from $500-$1,000/year when there’s a +/- 5 year difference.
*Bathroom: Adjustments are usually $2,000-$4,000/half bath when there’s a difference.
*Gross Living Area (GLA): There’s already been an adjustment considered at $65.00/sf when there is a +/- 100sf difference in GLA.
*Garage: Adjustments vary from $2,000-$5,000/garage when there’s a +/- 1-car garage difference.
*Fireplace: Adjustments are typically $500-$1,500/fireplace when there’s a difference.
*Outdoors: BBQ’s are typically adjusted $2,000+ depending on the caliber. Pool/Spa is typically adjusted anywhere from $15k-$40k depending on the market influence.
*APN #: There’s no need to adjust for these. Providing an APN # in the grid makes it easier for the bank(/reviewer) to locate the property tax records.
EFFECTIVE DATE: This is a retrospective dated appraisal with an Effective Date of 06/28/2021. Please use this date in the report (Effective Date of Data Sources and Date of Inspection/Effective Date).
VALUE: With the adjustments you’ve used, and the Gross Adjusted Value you’ve determined for each comparable, determine an indicated value by sales comparison approach and fill out the PDF accordingly.
Summary of Sales Comparison Approach (attached below. AP2_Summary blank copy):
Use this separate word document to explain the following, in your own words:
*The adjustments you made (or reasoning for a “0” adjustment) line-by-line. Do so by starting at the top and making your way down, line-by-line, as outlined in the word document
*How you came up with the indicated value by sales comparison approach. Whether you gave weight to one/two comparable’s over the other’s OR if you used all comparable’s in determining the value for the subject. Explain in detail the reasoning of coming up with the value. This needs to be thorough as you are explaining the value conclusion and banks want to know how exactly you came up with your findings. You should be able to confidently explain and back up your Indicated Value by Sales Comparison Approach.
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