The problem we address is the development and support of adjustments required to complete the Sales Comparison Approach section of the Uniform Residential Appraisal Report Form 1004.
The traditional method has been to search for paired sales that are equal in every way except the characteristic being analyzed. More recently, statistical analysis is applied to a sample of relevant properties.
After 19 years and over 5,000 appraisals, I have come to understand the limitations of these methods. Paired sales are seldom found. Statistical analysis is credible for large samples that fit the subject. But sample size and sample fit pull in opposite directions.
Our search for a method that is predictive and repeatable has lead us to the Depreciated Cost technique. We have developed calculators to make Depreciated Cost fast and convenient.
Click a tab above to read about The Sample Problem and how Depreciated Cost aligns with USPAP. Then gives us a try at Order Now. There is a Free Trial option, a $15/month recurring subscription and a $150 annual subscription.