Market Conditions Adjustment

Go to https://www.appraisal-lab.com/sales-comparison and review the market conditions data and the adjustments applied to the comparable sales. Test the reasonableness of the 0.20% monthly market conditions adjustment using the rent, vacancy, effective rent, price-per-unit, and capitalization-rate trends presented on the page. Identify which market indicators support the adjustment, which challenge it, and whether another adjustment rate or no adjustment could also be reasonably supported. Show your calculations and explain your reasoning.

Comparable Analysis

Go to https://www.appraisal-lab.com/sales-comparison and compare the subject with each comparable using all available sale, income, and physical information. Identify any property characteristics that differ materially but received no adjustment or qualitative consideration in the Sales Adjustment Grid. Explain whether those differences are likely to affect buyer pricing and what market evidence could be researched to determine whether an adjustment is warranted.

GIM Test of Reasonableness

Go to https://www.appraisal-lab.com/sales-comparison and review the Gross Rent Multiplier (GRM) data for the subject and comparable properties.

Use the comparable GRMs as an independent test of the concluded value in the Sales Comparison Approach.

For each comparable:

1. Identify the comparable’s GRM.
2. Apply that GRM to the subject’s gross rental income to calculate an indicated value for the subject.
3. Calculate the corresponding indicated value per unit.
4. Compare each indication with the concluded value of $305,000 per unit and $13,725,000.
5. Identify which comparable GRM indications provide the strongest support for the concluded value and which produce materially higher or lower indications.
6. Explain whether any comparable GRM should receive less weight based on differences in occupancy, rent levels, unit mix, location, age, condition, amenities, or other property characteristics.

Then calculate the average and median indicated values produced by the comparable GRMs and compare those results with the concluded value.

Conclude by explaining whether the GRM analysis supports, challenges, or provides mixed support for the $305,000-per-unit value conclusion. Do not simply accept the concluded value; use the GRM analysis as an independent Test of Reasonableness.

Overall Test of Reasonableness

Go to https://www.appraisal-lab.com/sales-comparison and act as an appraisal reviewer. Review all of the comparable sale, market conditions, income, physical, adjustment, and reconciliation data presented on the page. Test the reasonableness of the concluded value of $305,000 per unit and $13,725,000. Do not simply accept the stated conclusion. Identify the evidence that supports the conclusion, the evidence that challenges it, whether the weighting of the comparable sales is logical, and any additional analyses that could strengthen or weaken the conclusion. Also compare the conclusion with the subject's listing price, contract price, and assessor's value and explain what those benchmarks do—and do not—tell you about reasonableness.