Sales Comparison Approach

The Sales Comparison Approach

One subject, three comps, and a grid that finally shows only what matters. This is the Sales Comparison Approach on the redesigned URAR, in about six minutes. We'll cover how the grid decides which rows to show, how adjustments work now, and where each feature belongs.

Every row earns its place

The old grid was a fixed form. Every row printed, whether it had anything to say or not. The new grid is dynamic, and each row shows up in one of three ways. Always rows print on every report. View, for example, is always in the Site block. If Applicable rows switch on by themselves when a property has the feature. If a comp sits in a hazard zone, the Hazard Zone row appears. If Relevant rows are the appraiser's call. Bring one in when it supports an adjustment or helps tell the story, even when the adjustment is zero. Leaving out a row that mattered can mislead the reader. Optional never means unimportant.

Gray, dash, or zero

There are two kinds of empty cell, and they mean different things. A gray cell can never hold data. The subject has no proximity to itself, and Days on Market has no adjustment column. A dash means the row is in play, but it doesn't apply to this property. One comp has a pool, so Water Features appears, and everyone else shows a dash. And a zero adjustment is a statement. The appraiser saw the difference and concluded it doesn't move value.

Three ways to adjust

Most adjustments are line items, made right on the row where the difference shows up. Four subsections take a single roll-up adjustment instead: Project Information, Water Frontage with Private Access, Energy Efficient and Green Features, and Vehicle Storage. Outbuildings get one lump-sum adjustment for each outbuilding. And the quality and condition detail rows take no adjustment at all. We'll see why in a moment.

Subsections, top to bottom

Here's the full lineup, from top to bottom. General Information, Site, Dwellings, Units, Quality and Condition, Vehicle Storage, and the Summary always appear. Project Information, Water Frontage, and Outbuilding appear when the property calls for them. Project Information, for example, kicks in for a condo, co-op, or condop, and can be brought in for a PUD when fees or amenities differ. Green Features, Property Amenities, and Additional Properties Analyzed Not Used appear when the appraiser decides they're relevant. Six subsections also accept added rows for anything atypical: General Information, Site, Dwellings, Units, Vehicle Storage, and Outbuilding.

Structures, then units

The Dwellings block describes each structure that is a dwelling. Outbuildings are handled on their own. When there's more than one dwelling, each answer can be listed side by side in the same row, or combined. Gross Building Finished Area is a single total across every dwelling: every level, standard and nonstandard area, common areas, and ADUs. Units carry the bedroom and bath counts. A single-family home shows one unit. A two to four unit property is laid out unit by unit, so the differences are visible without digging through an addendum.

Describe here. Adjust there.

Quality and condition now gets real detail in the grid. Exterior rows appear when the homeowner is responsible for all exterior maintenance, and they repeat for each dwelling. Interior rows repeat for each unit, and ADUs get their own interior block whenever the subject or any comp has one. These rows explain the ratings. They never carry adjustments. Every quality and condition adjustment lands in one place: the Overall Quality and Overall Condition rows, on the one to six scales, where one is the highest.

Where does the garage go?

Property Amenities covers features only the owner gets to use, grouped into five categories: outdoor accessories, outdoor living, water features, whole home, and miscellaneous. HOA amenities, views, and waterfront improvements are reported elsewhere. Now, the garage question. An attached garage, or a detached one used only for parking, lives entirely in Vehicle Storage. A detached garage with an ADU splits in two. The ADU goes to Units, and the parking stays in Vehicle Storage. A detached garage with a workshop and a bath splits too. Parking in Vehicle Storage, workshop in Outbuilding. That's why ADU space and parking never count toward an outbuilding's finished area or room counts.

Weigh every comp

The Summary closes the grid with net adjustments, adjusted prices, and a weight for every comp. There are three weights: Most, Less, and No Weight. And more than one comp can be Most. No Weight is for a comp you kept in the grid but didn't rely on, like a sale that wasn't a typical market transaction. Single-family reports show price per finished area above grade. Two to four unit reports show adjusted price per unit, per bedroom, and per gross building finished area. Then the reasoning goes into the Reconciliation of the Sales Comparison Approach.

Analyzed, not used

Finally, there's a place for the sales you looked at and set aside. Additional Properties Analyzed Not Used lists each one's address, status, sale date if it closed, and the reason it wasn't used. It's also where properties raised during a reconsideration of value end up. Two things don't belong here: land sales, and comps that sit in the grid with No Weight.

Five things to remember

Quick recap. One. Rows appear Always, If Applicable, or If Relevant. Two. Gray means never, a dash means not for this property, and zero means considered. Three. Line items, four roll-ups, and one adjustment per outbuilding. Four. Describe quality and condition in detail, but adjust only in the Overall rows. Five. Weigh every comp, and document the ones you left out. That's the Sales Comparison Approach. Next up: rental information and the income approach.