Residential Comp Equity Grid Explained

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 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.    “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 IDProperty identification number
Situs AddressPhysical address of property
Neighborhood AdjustmentGroup of properties with similar market characteristics
Actual Year BuiltThe year the property was built
Living AreaTotal square footage of livable area based on outside measurements
ClassOverall quality rating of the improvement
Class AdjValue difference between quality of comparables
Improvement ValueTotal value for all structures on the property
Segments & AdjValue difference between the subject and comparables
Effective Year Built AdjValue adjustment made for age of improvements
Segments & Adj SubtotalTotal area for living and garage area
Land Value AdjTotal value adjusted for characteristics of the property
Market ValueTotal appraised value of the property
Market Price / SQFTMarket value divided by living area (improvement SQFT)
Net AdjustmentValue of adjustments + or –
Indicated ValueTotal value after adjustments
Indicated Value / SQFTAdjusted price per Square foot
Median Value / SQFTMedian value per Square foot
Median ValueMedian value of the property

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Contact Information

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

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

Temple Office:
205 E. Central Ave.
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