Working with Grids & Comps

There are four types of grids in the appraisal template:

1. Land
2. Sales (Improved property)
3. Commercial lease, including office, retail, industrial and general commercial (leases analyzed on a per square foot basis)
4. Multifamily lease

All grids follow the same model — this article will use the Sales Grid as an example. 

Working with the Sales Analysis Worksheet

Overview

The sales grid worksheet has four primary tables:

1. The sales grid — actually two tables: Comps 1-3 and Comps 3-6. The combined grid has a max of six comparables.
2. Sales grid reconciliation
   1. Validation table (optional table for validating the sales and EGIM analyses)
3. EGIM Analysis (optional). Land and Lease grids feature an optional Comp Summary table.
4. Subject and comparable maps (optional settings for road, satellite, hybrid and terrain map styles)

Sales Analysis Worksheet Table Layout

Tables are organized stepwise, down and right. This allows for independent row and column management (hide/show rows) for each table.

Setup the Analysis Grid

Set the Analysis Premises

Start by selecting the premises for the analysis. Each valuation analysis is assigned to an appraisal scenario which determines the effective date of the analysis, the property right analyzed and the context of the analysis, typically as is, or as stabilized. Appraisal scenarios are established on the Appraisal Premises & More sheet.  There are typically two analyses, As Is and As Stabilized. 

1. Select the appraisal premises (Premises are established for scenarios 1-4 on the Appraisal Premises & More sheet).
2. Select the grid name - for example 'Sales Grid 1'. The name will distinguish this grid from others in the reconciliation worksheet and Appraisal Data Table.
3. Select the unit of analysis for the grid and value estimate — this will automatically populate the grid.
   1. $/Sq Ft GBA — price per square foot gross building area
   2. $/Sq Ft RA  — price per square foot rentable area
   3. $/Unit — price per unit

Subject Data

The subject column of the analysis grid automatically populates from subject description sections of the document and spreadsheet.

Add Comps to Data Sheet #

• Grids are designed to work with Data Sheets which serve as containers for up to 50 comps. Comps are selected from the data sheet to populate the grid.
• Comps are added to Data Sheets by searching and importing from the database, or by hand entering comp data. Hand entered comps are automatically saved to the database.

• Data Sheets are associated to a grid by selecting the data sheet name in cell D9, which is usually preselected for you when templates are created. This table shows the default data sheet associations for StartDeck appraisal templates:

• Comps are added to the grid by selecting the property name at the top of each comp column (row 9) on the grid:

Adding Comps to the Grid:

1. Start by selecting the data sheet (D9) that contains your comp data.
2. For each comp, select Property Name* (row 9) to populate the grid. Note that each property must have a unique name. For properties without a name, use the address.
   *The default filter is Property Name, however any field can be used.
3. Comps may be changed at anytime by selecting a different property name.

Changing a comp does not change adjustments. 

Removing a Comp from the Grid

To remove a comp from the grid, select the double dash from the dropdown:

Comp Adjustments

Grids are busy tables! Turn on highlighting to show adjustment cells.

Adjustments Overview

1. The order of Property Rights, Financing and Conditions of Sale are fixed and adjustments applied, if any, are cumulative. Each adjustment is applied to the subtotal of the previous adjustment (Calculations are not displayed on the grid due to space constraints - unhide rows to view).
2. The Market Trends adjustment is applied to the Adjusted Unit Price. The remaining adjustments are additive and the order of the categories is unimportant. These adjustments are made against the Market Trends Adjusted Price.
3. The Location adjustment is unique in that it is set manually for the subject and comparables.
4. The remaining adjustments are user selections via the in-cell drop down list of database fields. Selected fields will populate the subject and comparables. For example, if GBA is selected, GBA will populate the subject and comparable columns.
5. Net and Gross Adjustments are measured against the original price, before any adjustments are applied. We recognize that regional practices may differ and measure net/gross adjustments against the time adjusted price.

Notes

There are hidden rows for additional adjustment categories, but add rows sparingly as additional rows may extend the table onto the next page when merged to the doc.  

Options for adding more rows: Reduce row height and/or hide other rows where possible. On the doc side, reduce page margins and table cell padding. Best practice: avoid high density grids, that is grids packed with data, very little white space and small fonts. 

Because the grid includes both cumulative and additive adjustments, net and gross percentages may appear to total incorrectly. See calculations and notes by clicking the + sign next to 'Gross Adjustment Calculations’ at the lower left corner of the Grid.
 

We encourage you to experiment with these adjustments, observe and cross-check the dollar and percentage calculations. The math is not intuitive but important to understand.

Weighting Comps and Reconciliation

Most Weighted Comps

All adjustment grids have a checkbox option at the bottom of each comparable labeled 'Most Weighted'. 

Comps selected as 'Most Weighted' are distinguished as the best indicators of value for the subject. 'Most Weighted' comps are broken out separately in the Reconciliation table.

Grid Reconciliation

The Reconciliation table breaks out ranges of value by low, average, median and high comparable values. These ranges are presented in three formats:

1. Unadjusted unit values. This range represents the baseline for the analysis. Ideally, we would like the subject's reconciled value to be within this range as that shows a level of similarity between the comps and subject.
2. Adjusted Unit values. Here we should find a tighter range as the adjustment process should bring the comps closer to parity with the subject. The subject's reconciled unit value should, without exception, be within this range. The tighter the range the better.
3. Adjusted 'Most Weighted' values. This range represents the best and most similar comps to the subject and should show the tightest range of the three scenarios.

We can think of the unadjusted and adjusted unit values as forming the big picture, while the most weighted comps drill down and zero in on the highest probability of the subject's value. 

Sales Grid Validation (Optional)

The Validation table provides a set of checks to consider for the Sales Analysis. These basic tests of reasonableness provide a guide for analyzing the components and reliability of the analysis.

The following items are included in the Sales Analysis Validation table:

• Sales Dates - All Comps
• Sales Dates - Weighted Comp
• Unadjusted $/Sq Ft GBA - All Comps
• Adjusted $/Sq Ft GBA - All Comps
• Adjusted $/Sq Ft GBA - Weighted Comps
• Net Adj. Weighted Comps
• Gross Adj. Weighted Comps
• EGIM - All Comps
• EGIM - Weighted Comps

1. Validation analyses are baseline analyses that should be considered as a high level guide, not an indication of reliability.
2. Validation criteria is set at the template level and should be adjusted to reflect local market standards. Range criteria checks that EGIM indications are within the range shown by the comparables.
3. Validation analyses will auto populate and display a green check mark confirmation in the text, or a red X for indication outside of the recommended validation criteria.
4. A validation check list is provided for review appraisers.

Linking Grids in the Document #

Grids are copied and pasted as link tables in the Google doc. From the Actions menu (introduced May 28, 2024) select 'Copy Grid & Comps 1-3'. This will select the sales grid portion of the sheet. Next press Control-C to copy, then switch to your document and paste as a linked table:

There are important points to understand when pasting from sheets to docs:

1. Google will not link a table with more than 400 cells — exceeding this limit is common which is why we have separated the grid into two tables (Comps 1-3 and 3-6).
   For example a simple grid with six comps contains over 700 cells. The sheet will be pasted as an unlinked table, with a significant loss of formatting.
2. A minor loss of formatting is common. Fortunately, formatting corrections made in the doc are undisturbed by updating the linked table. Typical formatting issues are cell borders, cell alignment or numeric formats.

To avoid these issues, all grids are presented as two tables: Comps 1-3 and Comps 4-6. Each table is pasted as a link. 

Alternatively, a screenshot can be pasted as an image in the doc. This usually requires a large monitor to capture the entire grid and setting the page to landscape in docs.  If you use this option remember to update the image after grid edits. 
 

Note: For ease of viewing and working with grids, the grids can be combined, then unmerged for copy and paste actions. Simply click ‘Toggle Grid View’ at the top center of the worksheet.

Working with Lease Grids

Lease grids use the same model as the Land and Sales grids.  Functionality specific to multifamily and commercial lease grids are discussed here.

Commercial Lease Grid & Benchmark Rents # 

Commercial lease grids are based on specific space types within a given property, for example 'Mid-Size Retail' or 'Small Office'. Rent projections are made for each space type represented by the subject property. Space types are selected from the drop-down list at the top of the grid.

Tip: Instead of preparing multiple grids for each space type, a benchmark rent can be developed to project rents for other similar spaces. These benchmark rent projections can be adjusted to estimate rent for additional space types. For example, if the benchmark rent for Mid-Size Retail is $20/SF, a size adjustment of -x% can be applied to estimate the rent for "Large Retail" space. 

Detailed or Simplified Grids

There are two adjustment sections on the lease grid. The first section deals with the general terms of the lease, such as expenses that may or may not be included in the lease, escalation clauses and the like. These adjustments are made as dollar per comparison unit - most often dollar per square foot. 

The second adjustment section addresses location, building quality, condition, etc. 

Based on local practice and scope of work, one or both of these adjustment sections may be hidden to display a simplified grid. 

Multifamily Lease Grid

The multifamily lease grid is unique from all other grids in that rents for several space types are displayed for each comparable, and comparisons are qualitative rankings of inferior, similar or superior. 

Projections are made for all multifamily space types at the Multifamily Projections table (this table is down and right from the grid).  Multifamily rents are projected on a monthly basis – rent per square foot and per room are calculated from the monthly rent. 

Comp Data for Comp Sheets

Each comp on a given grid has numerous description fields that are merged to the linked document via s_fields to populate comp sheets. Some of these fields are located on the analysis grid, with additional fields located below the grid in the hidden comp details section. These fields merge automatically to comp descriptions in the document. 

Document view showing comp sheet with merged s_fields. Below is a land comp example. Merged fields display as green during the report writing process, then changed to black for final report publication.

Analysis Metadata # 

Analysis metadata captures data about the analysis, such as number of comps, high, low, average indicators, dates and more. This table is located below each grid and populates automatically. A complete summary of valuation metadata is presented here. 

These tables are hidden from view by default but can be easily viewed by expanding rows.

These data points are (optionally) imported to the Appraisal Data table and saved to your database. 

Subject and Comparable Maps # 

All grid worksheets have map tables. These tables allow for customizing map names, map types and address/geocode settings. Maps can be easily accessed using worksheet navigation links or from the StartDeck Tables sidebar navigation.

Related Articles

Comparables and Appraisal Database

Database Search and Editor

Adding Records to the Database

How to Setup the Database

Appraisal Data Schema

Appraisal Data Schema FAQs

How to Get More Help

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• Request a web meeting here