HIT’s Top Of Market Value defined as Grid Analysis Model; HIT’s COMPALATOR™

Let’s get technical for the technical guys. What are these values Home Investor Tool (HIT) is flashing and what they mean. This entry is one attempt to get to the bottom line of how HIT defines Top Of Market (TOM) and why it’s a big deal Not everyone wants the technical back story – turn back now or get some no Doze.

HIT uses Grid Analysis to determine its core values: TOM – Top of Market, MA – Market Average – and Whole Sale. Grid Analysis in a list of values that allows the analyst to systematically identify, analyze and rate the performance of relationships between these values. Appraisers use Grid Analysis to evaluate property and is a core Decision Matrix for lenders and investors.

HIT’s defines TOM is Top Of the Market for a fixed up property of like kind.  It is based on the highest sold prices, which are bracketed for gross living area (GLA) and aligns with year built and the core amenities – lot size, garage spaces, bedrooms, baths and pools, design and construction quality.  Proximity and closed date are the first lines of demarcation and we will reach out until we have at least 3 properties that align with the subject. HIT always has 6 comps before selecting the highest rated. Subdivision is given additional weight. Since this is the top of the market no adjustments are made for condition.

To be conservative HIT scrubs to eliminate the top and bottom comps from consideration unless there is compelling evidence they are relevant.  Though we are identifying which properties in this area have produced “like kind” in fixed up condition, it has been our experience that the very top and the very bottom tend to be the exception, not the norm. HIT does not eliminate relevant comps, just the aberrations.

HIT’s TOM is the most that a property like the property in question can bear in this market area. HIT also provides the middle of the market or “Market Average” and the verifiable bottom on the market or “Wholesale” value.

HIT’s value model is transparent; the values of the fields and the adjustments are clearly defined in the Adjustment Grid. HIT rates the comps as well. In all cases the value is the midpoint of the comps used adjusted values. To replicate this value assumes market forces remain persistent and demand and market confidence are consistent. HIT is a real estate app that attempts to use an Decision Matrix by defining relevant and quantifiable values and adjusting for the differences. This analysis is not an extrapolation or estimate; it is calculation driven and is deemed to be reliable though not guaranteed.

HIT’s is agnostic on its values – TOM is based on the parameters defined, manipulation of the fields and their values. If the User wants a more personal version they can use the exclusive COMPALATOR ™ provided in the app for Professional, Wholesale and even Retail Members. HIT goes one step further by providing all the available evaluation models – Grid Analysis, CMA,  AVM, Market Trends . In this way the User decides which, if any, is reliable for their investment dollars.

HIT is a real estate app that provides a wide range of values from the known models from so the Members can decide among those provided or others.