“Rules of Thumb” relating to Adjustments

[Kelly Githens]

My name is Kelly Githens. I’m an Investor and Appraiser in Oregon. I’m creating a comprehensive Real Estate Investing Tool focusing on houses. A main part of the Tool is a valuation grid patterned after the FNMA Form 1004. I’m running into an issue with how to explain to Investors how to make adjustments. I’ve been exposed to and picked up various “Rules of Thumb” relating to Adjustments (For example A Gross Living Area adjustment would be to take the price per Square Feet of Gross Living Area and divide by two). I’m hoping some folks out there would be willing to share their Rules of Thumb or thoughts on where to go to find them. 

I Need “Rules of Thumb” for the following adjustments:

• Location (both positive and negative factors)
• Lot size
• Street appeal
• Quality
• Condition
• Bedrooms
• Bathrooms
• Unfinished basement area
• Finished basement area
• Functional utility
• HVAC
• Parking
• Garage
• Amenities
• Other