Adjustments

Transcript

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.

The Adjustments panel

Time Adjustments shows how prices moved, month by month. Here, they rose about 4.5% over the twelve 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. 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.

One rate per row

Close the panel, and select Power Adjust in the grid toolbar. It adds a column of formulas beside the subject: one rate per row, applied to every comp at once. The time adjustment from the panel is already there, on Contract Date. The oldest sales get the largest adjustments.

Area, bedrooms and baths

Next, Finished Area Above Grade. Open its formula, and enter $141 per square foot. Small differences in area don't change value here, so add a threshold: the difference must be at least 100 square feet. Bedrooms: $16,200 per bedroom. A comp with more bedrooms is adjusted down. And Baths: $4,200 per full bath. Half baths are left unadjusted. The adjustments land in every column. The smaller comp 2 is adjusted up; the larger comp 3 is adjusted down.

Concessions

Some adjustments apply to only one sale. You can type an amount straight into a comp's adjustment cell. Comp 2's ten thousand dollar concession is more than is typical in this market, so we adjust for the excess: minus $1,050.

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.

Most or Less weight

Now weigh the comps, in the Comparable Weight row. Comps 2 and 3 are very close to the subject, with similar one-story design and utility, so they get Most weight. Comps 1 and 4 get Less weight. Comp 1 has two more bedrooms and a renovated interior; comp 4 is a split-level in Plantation. Then enter the Indicated Value by the sales comparison approach: $610,000, within the adjusted prices of the four comps, and between the two with the most weight.

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 where each adjustment rate came from. Note what was left unadjusted, and why. Type it yourself, or paste it in from your notes.

Reconciliation

That completes the sales comparison approach. Next, Reconciliation.