Adjustments

Adjustments

With the comps in place, we adjust each one for how it differs from the subject, using the market's evidence, then decide how much weight each one gets. Open the Adjustments panel in the right rail. It analyzes the closed sales in the market we imported.

Time and features

Time Adjustments shows how prices moved, month by month. Here, condo prices have eased: down 1.88 percent over the six months before the effective date. Apply puts that price index on the grid's Contract Date row. Each comp is adjusted for the months between its contract date and our effective date, downward here, since prices have eased since those sales. Feature Adjustments estimates a rate for each feature, like finished area, bedrooms and baths, from the same sales. Treat these rates as support. The rate you apply is your call, based on all the evidence.

Which rates to apply

Close the panel, and select Power Adjust in the grid toolbar. Its column holds one formula per row, applied to every comp at once. The time adjustment from the panel is already there, on Contract Date. The panel's area and bath rates are estimates from a mixed pool of flats and townhouse units. Tested against these four sales, they weren't reliable enough to support adjustments, so we leave those rows unadjusted. Instead, the differences are handled by weighting: the two Harvest sales match the subject's layout and size most closely, and the larger comp 4 gets less weight. We'll say so in the commentary.

Net and gross

Net Adjustment Total and Adjusted Price update as you go. Back in the Adjustments panel, Analysis shows each comp's net and gross adjustments as a share of its price, so a heavily adjusted sale stands out. These are all small.

Weigh the comps

Now weigh the comps, in the Comparable Weight row. Comps 2 and 3, the Harvest sales, have the most similar configuration and consistent recorded prices, so they get Most weight. Comps 1 and 4 get Less weight. Comp 1's MLS price, $274,000, conflicts with the $245,000 on its recorded deed; comp 4 is larger and more extensively updated. Then enter the Indicated Value by the sales comparison approach: $250,000, in line with the two Harvest sales, and below the less-weighted comps 1 and 4.

Explain the analysis

Last, explain the analysis. Open the Sales Comparison Approach section. In Reconciliation of Sales Comparison Approach, say which sales got the most weight and why, and how the time adjustment was measured. Note what was left unadjusted, and why: area and baths, concessions, view and parking, and the subject's flood zone. Type it yourself, or paste it in from your notes.

Reconciliation

That completes the sales comparison approach. Next, Reconciliation.