Friday, November 2, 2018

Homebuyers Must Demand to See the Contributing Comps – Spatially

Comparable Sales ("comps") from the other side of a major artery or from the lakefront (if the subject is not) can be significantly pricier, thus improperly inflating the value of the subject property you might be interested in.

So, ask your real estate salesperson to show the comps, contributing to the valuation of the subject property, spatially (on the map)!

The same idea is equally applicable to the existing homeowners planning to challenge their property tax assessment. Ask your Tax Assessor to show the comps (that contributed to the market value leading to the assessed value of your home) on the map. 

Since Assessors (of larger jurisdictions) heavily depend on Automated Valuation Models (AVMs) based on statistical algorithm, this is often a serious problem. If their valuation is strictly AVM-based, it would be difficult for them to decompose the valuation, comp-wise. Conversely, if you are shown the comps on the map, you could easily relate to them, leading to total or partial acceptance or rejection, nonetheless authoritatively. 

Here is a snapshot of spatial comps: 

(Click on the image to enlarge)
Comp #7 is lakefront while the subject isn't so it cannot be a contributing comp. Similarly, #1, 8 and 10 could come from an incompatible neighborhood, potentially skewing the valuation as well. 

I picked the spatial graphic from Homequant.com as I own and operate it, to avoid having to deal with any copyright issues. My Homequant site is totally self-directed (no modeled values), totally free (no strings), and requires no login or registration whatsoever. Please use the site/system that works best for you.


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