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 adjusted. Typically, a sales comparison grid will include at least three comparable sales, sometimes more, and after the adjustment process there will be an indicated value shown at the bottom of the grid. The indicated value (median value of adjusted sales prices) 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.
Comp Grid Definitions |
Description of characteristic |
| Parcel | Identification number assigned to each property |
| Address | The physical address that has been assigned to the property. |
| Sales Date & Sales Price | The date that the comparable sold and the price it sold for. |
| Neighborhood | This lists the group of similar properties that the property has been assigned to. |
| Living Area | Outside measurements of living area (including all heated and cooled area) |
| Class | Quality of construction assigned to the property. |
| Act/Eff Yr Blt | Actual year built and effective year built of the property. |
| Land Value | Total market value of the land. |
| Adjustments | |
| Living Area / Adj | Value of all living area for comp / Difference between subject and comp |
| % Good/ Adj | Percent Good (Depreciation) of comp based on age / Difference in value from depreciation between subject and comp |
| Non-Res Segment / Adj | Value of all improvement segments not considered living area (i.e., porches, garages, pools) / Difference in value between subject and comp |
| Land Value / Adj | Value of total market value of land for comp / Difference in value between subject and comp |
| Neighborhood Adj | Difference in adjusted values assigned to different neighborhoods (locations) using market data. |
| Quality Adj | Difference in value assigned to living areas by base unit price determined by total living area and quality |
| Total Adjustments | Net of all adjustments |
| Adj. Sales Price | Sales price plus net adjustments (adjusted to be like subject) |
| Indicated Value | Median value of all adjusted sales prices of the comparables. |
