Residential Comp Sales Grid Explained

Single-family residential properties are valued using mass appraisal models and methods that use sales of all comparable properties to the subject property.  During the market appeal of a property, the appraisal district will use the most similar properties available, close in age, size, and attributes, and compare only those using a sales comparison grid.  This ‘Sales Comparison Approach’ is similar to that that a fee appraiser would use to appraise a property for banks and mortgage companies for financing.  In any comparison, appropriate adjustments are required prior to comparing the subject to each one.  The goal of adjustments, is to adjust the sales price of the comparable sale to make it most like the subject as if it sold on January 1 of the current tax year.

The example of the sales comparison grid on the following page is presented to assist property owners as they prepare for informal meetings with TADBC appraisal staff and/or protest hearings before the Appraisal Review Board (ARB).

The sales price of each comparable is adjusted to the subject and the sum of positive and negative adjustments is shown in the grid as “Net Adjustments”. The net adjustment amount is then added to or subtracted from the sales price of that comparable, with the result of this calculation being the indicated value for each comparable used.    “Subject’s Indicated Value” via the sales comparison approach. Typically, a sales comparison grid will include at least three comparable sales, sometimes more, and after the adjustment process there will be an indicated range of value shown at the bottom of the grid. The indicated value is then divided by the living area of the subject property to derive an indicated value per square foot of the subject property. The indicated value range and/or indicated value per square foot range is compared to the current market value appraisal of the subject property to determine if the current appraisal is reasonable and supported by comparable sales.  The results are then listed in the Median Value per square foot and Median Value for the subject property.

Comp Grid Definitions

Description of characteristic

Prop ID Property identification number
Situs Address Physical address of property
Neighborhood Adjustment Group of properties with similar market characteristics
Market Value Total appraised value of the property
Market Price / SQFT Market value divided by living area (improvement SQFT)
Sale Price Adj Sale price of comparable+/- any adjustments made above
Sale Date Date of sales contract
Land Value Adj Difference in Lot/Acre value of sugject and comparable (subject land vale – comparable land value)
Class Overall quality rating of the improvement
Class Adj Value difference between quality of comparables
Living Area Total square footage of livable area based on outside measurements
Actual Year Built The year the property was built
Effective Year Built Adj Value adjustment made for age of improvements
Segments & Adj Total area for living and garage area
Net Adjustment Value of adjustments + or –
Indicated Value Total value after adjustments
Indicated Value / SQFT Adjusted price per Square foot
Median Value / SQFT Median value per Square foot
Median Value Median value of the property

 

 

What is a Property Tax Appraisal?
Contact Information

Belton Office:
411 E. Central
Belton, TX 76513
Phone: 254-939-5841

Killeen Office:
301 Priest Dr.
Killeen, TX 76541
Phone: 254-634-9752

Temple Office:
205 E. Central
Temple, TX 76501
Phone: 254-771-1108

Mailing Address For ALL Locations:
P.O. Box 390
Belton, TX 76513

Hours of Operation:
Monday – Friday
8:00am – 4:45pm