REM 300 Lecture Notes - Lecture 13: General Linear Model, Appraisal Institute, Fide

• School: Ryerson University
• Department: Real Estate Management
• Course: REM 300
• Professor: David Scofield

Document Summary

If a particular characteristic is better for the comparable house relative to the subject property, then the adjustment is a deduction from the sales price. If a particular characteristic is worse for the comparable house relative to the subject property, then the adjustment is an addition to the sales price. Data published by the appraisal institute (or another source) from paired-sales analysis or multivariate regression (hedonic models) or another method. Form 700 for residential appraisal includes a table for the sales comparison adjustments: key characteristics are included, with space for the appraiser to add more items. Typical practice in residential appraisal is to have 3 comparable sales. The 3 adjusted sales prices are then reconciled to determine a single value for this approach: appraisers might average the 3 adjusted sales prices, or may weight the three prices differently. A small number of adjustments indicates a better comparable, so it could be weighted more heavily.