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Jack Schlenk's Blog

By Jack Schlenk | Appraiser in Chicago, IL

Subject Hypothetical Market Values

Market Values based on the subject market data, The reader is to fill in the data where noted.

The subject prior sale was (date) @ (dollars). It is assumed the subject's sales price was supported by the market data in the time period (date).

Subject Hypothetical Market Values

Attached, Single Family, 2-4 units in MLS (number or area)
 # sales, subject date of market data, $ Low - $ High, avg $, median $, dom  
 # sales, date todays market data, $ Low - $ High, avg $, median $, dom

Ratio's  Average %    Median %

Based on this market data the subject's present estimated values would be
 subject prior sale price X Avg % =$Value, Subject prior sales price X Median % = $Value

Same formula for the subject's type of property.

Same formula for the subject's type of property and the number of bedrooms and baths.

The ratio's average and median percents times the subject prior sales price may help support
the subject present value opinion, and or support or not support the subject prior market value opinion.

A good appraisal report will have a hypothetical scenario and data to support the value opinion in the appraisal report.

It the appraisal report lack data to support the value opinion and statements it may not be a creditable report.  

Jack Schlenk
Illinios License(s), Certified RE Appraiser & Managing RE Broker
773 685 8300 jack327@sbcglobal.net

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