Definition of Price Adjustments:
Orange County Price Adjustments:
When a BanCorp agent is completing a comparative market analysis (CMA) they will make price adjustments to sale prices of comparable homes to arrive at an optimum market value for the target home. The objective of these price adjustments is to account for the differences between the comparable homes being used and the subject home. Real estate professionals use price adjustments to more accurately find the current market value of a home. We recommend talking to a BanCorp REALTOR® if you have questions about how to make price adjustments to your home.
Here are a few Examples of Price Adjustments:
If a recent sale in Aliso Viejo sold for $600,000 but is 5% larger than my own house, I may adjust that sale price down by 5% to see what my home would sell for at the same $/Sq. Ft.
My neighbor recently sold their Laguna Niguel home for $800,000. Our homes are very similar except that mine has a new pool and spa that cost $90,000. I would adjust their sale price up by $90,000 to account for that difference and get an estimated value of $890,000 for my home. If the pool and spa were not put in recently you might not be able to add the full value of the pool and spa because of depreciation.
In my condo building a unit on the water in Laguna Beach with my same floor plan but on a lower floor recently sold. I would adjust that sale price up to account for the white water view, based on previous sales, buyers have been paying a $75,000 premium for this view.