Newz: Appraisal Adjustments, How Freddie and Fannie Inflated Home Prices, FHA to Adopt UAD 3.6
August 29, 2025
What’s in This Newsletter (In Order, Scroll Down)
- LIA AD Navigating Value Revisions in Appraisals
- Appraisal Adjustments: Types, Methods, and Cheat Sheet Appraisal By Kevin Hecht
- Inside Artificial Heart Inventor’s $4.8 Million Midcentury Modern Salt Lake City Utah Home
- Inflated Prices, Taxed to Death, by Jeremy Bagott
- Can the direction a home faces affect its value? By Ryan Lundquist
- The Competence to Perform an Assignment, by Timothy C. Andersen, MAI
- FHA to adopt UAD 3.6
- MBA: Mortgage applications decreased 0.5 percent from one week earlier
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Time Adjustment Changes for Appraisers
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Appraisal Adjustments: Types, Methods, and Cheat Sheet Appraisal By Kevin Hecht
Excerpts:
Types of Appraisal Adjustments
Appraisal adjustments can take several forms, depending on the property characteristics being compared. Each type of adjustment addresses a different element that may influence value. Below are descriptions of common adjustment categories and their uses, followed by a “cheat sheet” chart with examples.
- Qualitative Adjustments
- Quantitative Adjustments
- Transactional Adjustments
- Market Conditions Adjustments
- Property Adjustments
- Locational Adjustments
Common Methods for Making Appraisal Adjustments
A long list, from matched paired sales to Cost Analysis
Appraiser Survey: What’s Your Go-To Method for Adjustments?
Paired sales/matched pair analysis (Most popular answer!)
“I typically cover rural areas where sales are scarce and there is not enough data for meaningful statistical analysis to be performed. Due to this, paired sales analysis is the most reasonable and defensible analysis position available.”
“I use linear regression to understand market changes and to calculate any necessary market change adjustments.”
“Depends on what item is being adjusted. If it is site or GLA, it is usually a percentage of the per acre or per square foot sales price. Other items are usually paired sales analysis or consideration for depreciated cost.”
To read more, Click Here
My comments: Comprehensive lists and interesting appraiser comments. I quit doing grid dollar adjustments many years ago. A person from our state regulator, speaking at a local appraisal meeting, said they would require support for all adjustments. I started by doing Plus and Minus grid adjustments and then went to “total property comparison” with a value. I do a qualitative analysis comparing the comps.
The only supported dollar adjustments I make are for market conditions and high dollar features such as a fantastic view of the Golden Gate Bridge from very high up a hill.
Inside Artificial Heart Inventor’s $4.8 Million Midcentury Modern Salt Lake City Utah Home
Excerpts: 4 bedrooms, 4.5 baths, 5,447 sq.ft., 0.55 acre lot, built in 1957
The mastermind behind the one-of-a-kind estate was none other than Swiss architect Eduard Dreier, who brought Bauhaus principles to the modernist movements of Utah and Nevada.
Lovingly restored and awarded the Utah Heritage Award for Restoration and Renovation, this 5, 447 sq ft architectural gem blends timeless Dreier elements-exposed steel beams, walls of glass and cantilevered roof line, granite rock walls-with warm modern luxury. The 1,110 sq ft glass-and-steel attached guest house, designed by Dreier protge Brent Groesbeck in 2016, floats above the main home, expanding living where entertaining is elevated to an art form.
To read more, Click Here
To see the listing with 43 photos and a video tour, Click Here