Superior Comps, Downward Adjustments

When real estate appraisers are using the sales comparison approach to value property, adjustments are made to account for differences in relevant property characteristics.

Over the past week I got a couple of emails about adjustments, specifically: “why are downward adjustments made to superior comparables?”

This video sorts our the concept that at first might be counter-intuitive by looking at two residential features that are common in Hawaii: Swimming Pools and Ocean Views.

Questions?  Please ask in the comment box below.

Aloha, Chris

About Chris Ponsar
I'm a commercial and high-end residential real estate appraiser in Hawaii. I'm passionate about appraisal and valuation issues in the same way some folks obsess over football, shopping, or bacon. I love this stuff.

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