Improvements candidates for comparisons are taken from the set of compatible Sale Comparisons when running the Model. These are the same Sales are that selected for meeting the Model’s Sale Criteria, and maximum age. 


If a traditional land mix adjustment is being used, sales must have an adjustable land mix for their improvements to be considered.


When valuing an individual Improvement, the pool of Improvements is filtered to only include Improvements whose Class and/or Type as well as Unit Type match those of the Subject Improvement. Comparison Improvements must also have values defined for RCN/Unit, Remaining Life, and Age. If any of these fields is empty, the Improvement will be excluded from use as a Comparison.


Improvement Rating


The remaining Improvements in the pool are rated using a fixed set of Improvement Comparison Values. The Comparison Improvements are rated by scoring them against the Subject Improvement in four ways:


1.        Class/Type


2.        RCN/Unit


3.        Total Size


4.        Age


The Class/Type rating will score the Improvement as a “1” if the Type matches the Subject. If the Type does not match the Subject but the Class does, then the score will be a “0.9”.


An average score is calculated based on those 4 factors with all factors being considered at an equal weight. 


When all Comparison Improvements have been rated, the top-scoring Improvements are chosen based on the maximum number of Comparison Improvements to use as set by the Model. 



Remaining Life Adjustment


If the Model is configured to Adjust Improvements, then the Comparison Improvements have a Remaining Life Adjustment applied to their $/Unit value. The computation for Remaining Life Adjustment is as follows:


       [ValueRemainingPerYear] = [Comparison’s $/Unit] ÷ [Comparison’s Remaining Life]


       [RemainingLifeDifference] = [Subject’s Remaining Life] – [Comparison’s Remaining Life]


       [Remaining Life Adjustment] = [ValueRemainingPerYear] * [RemainingLifeDifference]


After applying the adjustment, the adjusted $/Unit value of the chosen Comparison Improvements is averaged and applied to the Subject Improvement to estimate its value.