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 example of the equity grid below 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 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. Typically, an equity comparison grid will include at least three comparable properties, sometimes more, and after the adjustment process there will be an indicated value shown at the bottom of the grid. The indicated value is compared to the current market value appraisal of the subject property to determine if the current appraisal is appraised equitably.
Equity Grid Definitions |
Description of Characteristic |
| Parcel | Identification number assigned to each property |
| Address | The physical address that has been assigned to the property. |
| Market Value | Total market value of the subject and each comparable. |
| 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. Market Value | Market value plus net adjustments (adjusted to be like subject) |
| Indicated Value | Median value of all adjusted market values of the comparables. |
