Step 3 of the Sales Comparison Analysis is where you will be able to make adjustments to the comparable properties in order to get a more accurate valuation. Unlike the standard comp process, you will be able to adjust the home facts of the comp properties if for some reason there is a discrepancy or an update needs to be applied. An additional key feature on this page is the ability to add a row if you need to expand from the displayed elements. This feature is located at the bottom of the list of existing elements. A new row will be inserted, allowing you to add details and assign values to them.
You can also provide a positive or negative dollar-value adjustment amount for various attributes of the comps, such as bedrooms, baths and other fields. Agent users who are not sure what numbers to enter for adjustments in this part of the workflow may want to use the regular Comp Analysis workflow instead. Appraiser users will be familiar with the information to enter here; some agent users may also know it or be comfortable estimating (or want the flexibility to enter whatever number they want). If not, they may want to work with Refined Value or Comp Analysis to perform their work instead.
The last key feature is the ability to “weight” the comps. This will determine how much the comp property weighs in the final valuation analysis. Each comp must be allocated a portion of the 100% total. This percentage determines how heavily the comp property is considered when determining the value of the subject property.
There are three options when weighting comps: “Weight Equally” (which is the default setting), “Auto-Weight”, and the ability to assign a percentage manually.
- “Weight Equally” (the default setting) will automatically assign the same percentage to each comp property.
- “Auto Weight” will assign a percentage to each comp based on the number of adjustments needed to compare it to the subject property (using the gross adjustment percentage value). If you have to make more adjustments to a comp property in order for it to match up to the subject property, the comp property will be assigned a lower percentage than that of a property with fewer adjustments made to it.
- Manual weighting allows you to assign the weighting by entering any number in the column labeled “Comp Weighting.” Go ahead and change the percentage for each comp property, keeping in mind the total percentage must equal 100. You can also set a comp to have a 0% weighting if you would like to keep it in the adjustment grid for comparison purposes but would not like it to have an impact on the valuation estimate.
See this article for more details on weighting comps: http://support.narrpr.com/entries/23760407-How-do-I-weight-the-comps-