I like to export comps so I can chart the per acre values for a particular acreage class (e.g. 5-10 acres) in a histogram in Excel and see how values are distributed in a county.
When I did this I came up a with average and median per acre values that were way different from the "market price/acre" value. Specifically, the market price/acre value was $7,619.58 whereas the average of the 1620 comps was $40,950.49. The median was $12,056.07 (obviously the average was skewed way up by a small number of super expensive properties so I would not rely on that value).
I am curious to know how you guys generate your market price/acre. Thanks much.
I knew you guys had a better recipe. That all makes sense. Once again, thank you for the detailed response.
Hi Scott,
Thanks for reaching out! This is a really good question. The first thing to note is that when you are looking at the target area of 5-10 acres, we are only showing you the comps that are in that range, but not necessarily all of the comps that went into that model.
The pricing shown on the results table has two main parts that are contributing to it. The first is our data pre-processing. This is where we analyze the data for poor attributes (terms deals, houses, duplicates, etc) as well as remove potential outliers. You actually have control over this part in the Advanced Search section on the search page, where you can set up the custom distribution based on your IQR range. The second part is the actual model. Something to note is that we do have a weight system for the for sale and sold comps, in order to value the sold comps higher. We will also looks at surrounding acreages to ensure consistency. So when modeling 5-10 acres, we may also look at 3-5 and 10-15 acres to ensure that we are not being over skewed by specific comps in this range. The hope with this is to produce fluid models across the county.
It's tough to compare just the mean price of the range to our model. I think you are on the right track looking at the median, but even that may not be close to a perfect price point. What we have attempted to do is remove the guesswork out of the excel models, and analyze all of the data for you so that the resulting info that gets run through the actual model is of the highest quality, and produces extremely competitive offer pricing in the areas you are targeting.
The best part is that if you feel the price is too high or too low, you can always adjust it to what you feel is more accurate! We give you full control to make the adjustments as you see fit.
Hopefully this information helps!