Residential Comp Equity 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. To ensure that a property is appraised equitably (or similar) as compared to other properties like it, the appraisal district will use an Equity Grid. During the equitable appeal of a property, the appraisal district will use the most similar properties available, typically in same neighborhood, and close in age, size, and attributes. These properties will be placed in an equity grid, that is similar the Sales Comparison Grid In any comparison. Once place in the Equity Grid, appropriate adjustments are required prior to compare the subject to the selected comparable properties. The goal of adjustments, is to adjust the appraised (market) value of the selected comparables to make it like the subject.
The appraised (market) value 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 appraised (market) value of that comparable, with the result of this calculation being the indicated value for each comparable used. “Subject’s Indicated Value” via the equity comparison. Typically, an equity comparison grid will include at least three comparable properties, 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.
Equity 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|
|Actual Year Built||The year the property was built|
|Living Area||Total square footage of livable area based on outside measurements|
|Class||Overall quality rating of the improvement|
|Class Adj||Value difference between quality of comparables|
|Improvement Value||Total value for all structures on the property|
|Segments & Adj||Value difference between the subject and comparables|
|Effective Year Built Adj||Value adjustment made for age of improvements|
|Segments & Adj Subtotal||Total area for living and garage area|
|Land Value Adj||Total value adjusted for characteristics of the property|
|Market Value||Total appraised value of the property|
|Market Price / SQFT||Market value divided by living area (improvement SQFT)|
|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|
411 E. Central Ave.
Belton, TX 76513
301 Priest Dr.
Killeen, TX 76541
205 E. Central Ave.
Temple, TX 76501
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P.O. Box 390
Belton, TX 76513
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