10 Common and Costly Adjustments to Appraisal Comps
August 26, 2015 4:25 PM
In the world of property valuations, there's no such thing as the "perfect" comparable sale, because it's nearly impossible for an appraiser to find an exact replica of a subject property. So when a comparable property has a feature that is not the same as the subject property, an appraiser will make an adjustment to the comparable's sale price to account for the difference. From design and architecture styles to energy efficiency, here's a look at some of the most common or costly home features that get adjusted in appraisal reports. The data, from CoreLogic, is based on a national sample of 1.3 million appraisals completed between 2012 and 2015.
Design Style
Frequency of Adjustment: 5.36% Median Adjustment Amount: -$2,000
Energy Efficient
Frequency of Adjustment: 7.72% Median Adjustment Amount: $1,000
Location
Frequency of Adjustment: 18.17% Median Adjustment Amount: -$3,000
View
Frequency of Adjustment: 20.27% Median Adjustment Amount: -$1,000
Heating/Cooling
Frequency of Adjustment: 21.87% Median Adjustment Amount: -$500
Date of Sale
Frequency of Adjustment: 22.64% Median Adjustment Amount: -$3,897
Overall Condition
Frequency of Adjustment: 53.91% Median Adjustment Amount: -$5,000
Porch/Deck
Frequency of Adjustment: 55.88% Median Adjustment Amount: $1,000
Number of Rooms
Frequency of Adjustment: 70.43% Median Adjustment Amount: -$750
Living Area
Frequency of Adjustment: 96.38% Median Adjustment Amount: $720
