Electronic Appraiser reports contain important information used in the automated valuation process, these include: A reliable value for each home, detail on the subject property, comparable properties, sales price per square foot, assessed value/sales price ratio, comparable detail, demographic information, comparison tables, School and Hospital Information plus so much more! These items are further explained below:
Detail of the Subject Property This is a detailed report on the analyzed property with recent history as to sales price, current owner, tax assessed value and a description of the size of both the structure and property. This information is used as the basis to find Comparable properties.
Comparable properties These are properties which exhibit similar characteristics to that of the property being analyzed. The living area size and distance from the property being analyzed are key components in estimating the value. Properties of similar size and characteristics in the same area tend to have similar values. Comparable sales relate to sales prices of Comparable properties.
Sales Price Per Square Foot This is a mathematical calculation obtained by dividing the sales price of a comparable property by its size in square feet. Thus a $200,000 home that was 2000 sq. ft. would have a sales price per square foot of $100.00. An average of the sales price per square foot of Comparable properties can then be used to estimate value.
Assessed Value/Sales Price Ratio This is a mathematical calculation where the tax assessed value (the value the local taxing authority has placed on the property) is divided by the most recent sales price. Most tax assessments are lower than actual sale value but the ratio is used as a valuation tool.
Demographic Information This is information on the location and characteristics of the community the property is located. A census tract is a geographic designation established by the U.S Census which is assigned a designated number to keep track of population trends and census information.
Price Trends This compares the price trend of the zip code in which the subject property is located as well as the price trend in the county that the property is located. The property which is being analyzed is referred to as the subject and is abbreviated on the bar graph as Sub. The subject property will always be delineated in another color as depicted in the graphs and charts noted on the report.