For Specific help with an #ERMismatch or #InvERFactor error see the page ERMismatch ERROR MESSAGE in SCA pages


The SCA grid with ER Factor or land-mix calculation can be replicated four (4) times within a single appraisal assignment or potentially displaying 16 sales total.  Primary features include the following adjustments:


  • Split-land and building adjustment (land adjustment ER procedure applied) 
  • time adjustment (annual versus monthly and simple versus compound options)
  • five (4) user-defined feature adjustments
  • sales comparison summary with two (2) reporting options, or “multiplier basis” and “unit basis”


Page Explanation


The "sale numbers" (Sales 6-9 in this example) are user defined.  The appraiser can call the sales directly into the form using "d" or "i"

numbers.  However, AgWare suggests pulling the sales into the "report container", number to your liking, then use those assigned numbers

to populate the grids (cost, income, and SCA).  


The “Reimport Sales button is used to “re-populate” the grid after changes in the subject or "base criteria" along the left side of the grid.


The yellow arrow is an optional grid.  If four (4) SCA pages are used displaying 16 sales for this approach, the user could label them SCA Grid #1, SCA Grid #2, etc.  Or, the Cost Approach as Grid #1, Income Approach Grid #2, and SCA Grid(s) #3-#6.  This type of labeling is intended to assist a non-appraiser to follow any accompanying narrative.





Subject (green box) is populated from the new "Subject QuickStart" or can be entered manually --- which is repetitive.  Again, Sales (6-9 shown in grid) can be called in:


    • directly from DataLog using “d-numbers”, e.g., numbers automatically assigned by the program and specific to each sale
    • directly from DataLog using “i-numbers” for each sale (upper left corner of sale record) the user manually enters their specific number for the sale record, or
    • as shown above, pull sales from DataLog into the Clickforms container (the demonstration appraisal in AgWare’s documentation examples); then using the “tool” tab and “auto-number sales” function which assigns numeric numbers sequentially to each, or 
      • you can manually number the sales in the manner desired.  Repeat the procedure for as many grids used (4 pages possible = 16 sales), and/or
    • a third option:  enter the “d” or “i” numbers at the bottom of the classic QuickStart Page.  Note:  there are only 10 cells possible for the Sales Comparison Approach if you apply this option at the bottom of QuickStart.


The yellow boxes are manual entry “type-ahead” fields to identify the elements for the “adjustment” section of the grid, e.g., size, access, water, appeal, etc.  Those fields correspond with the sales in your DataLog, including the “fixed” cells:


  • Location
  • Multiplier unit
  • Multiplier No.
  • Legal Access
  • Physical Access
  • View, and 
  • Utilities, or


Any of the “variable fields C through N can also be used (again, type-ahead fields).  The Subject and Sale “responses” to those variable fields will be displayed respectively --- if they do not display, hit the “Reimport Sales” button at the top of the page.



The next section of the SCA grid involved traditionally included numerous calculations.  However, the 2019 ASFRMA textbook reduced the “land-mix” adjustment to one calculation using the ER Factor.  Only Sale 5 is highlighted for the discussion here --- every other sale has the same calculations procedures.  


NOTE:  The users may desire to go to AgWare’s website ((agware.com)/Help/DataLog – the second page labeled “3 Ways to

Calculate the ER”)) for explanation.  It is basically the percent change (Δ % --- shown on financial calculators) between the Sale versus

the Subject.  In this example (first grid), the Sale’s ER at 78% versus the Subject at 78.05% results in only a $4/acre adjustment

(yellow).  NOTE:  this is not the percent difference, but the percent change.


The improvement adjustments are calculated on the “Improvement SCA Adjustment Grid” --- a separate page with its own “help” section ----  and shown at $105/acre for Sale 5 (purple box).



The “time-adjustment” or market conditions adjustment begins with the “Adjust to Date” box shown in red.  For this example, 1/1/2020 used.  Two options are available via “pull-down” selection boxes (green):


  • Periods (monthly or yearly)
  • Rate (compound or simple).


The yellow arrow shows the time-adjusted land and time-adjusted improvement contributions are added together as the "adjusted subtotal" after time using that "blended $/Acre" moving down on the next series of adjustments (physical and economic characteristics).


The “split-time” adjustment page has become the new standard for AgWare.  This is to address markets where time adjustment for land is different than for improvements.  Simply, land may be moving (up/down/neutral) but buildings moving at a different rate, or not at all.  In this example, only the land was adjusted upward at 0.5%/month (compound).  For reviewers, the land component may be dominant and represent the majority of total value --- essentially reflecting any upward improvement market change is offset by depreciation.    


               

The Subject features are shown in yellow.  There are five 3-line “blocks” to adjust the sales to the subject criteria (four blocks or four adjustments are shown (live water, physical access, size [deeded acres], and productivity)).  The “100% ER Factor” is displayed (pull-down box contains two other alternatives: percentage and qualitative).   The 100% ER Factor procedure can be misunderstood initially, i.e., pairings measured from the 100% line (allocated price for the 100% land row) must be calibrated to the Subject’s ER Factor.  Simply, the SCA Grid uses the “blended” or overall price per acre --- thus, the “pure pairing at 100%” must be adjusted to the Subject’s ER to account for the difference between the sale and subject for each element.


The “Live Water” feature shown as the first adjustment (after land-mix and time) was measured from pairings at $1,500/acre.  When applied to Sale 6, the first improved sale, the downward -$1,500/acre adjustment is calibrated to the Subject’s ER of 78.05% = -$1,171/acre downward adjustment to move the Sale’s live water feature to the Subject with no live water.  The same applies for Sale 9 --- the last column.

The remaining adjustments are addressed in the same “calibrated” manner from the gross adjustment measured.


When “percentages” are selected from the pull-down option below, -20% is entered on the “Percent” line and ClickForms automatically calculates the dollar amount, or reports -$1,213/acre.



When “qualitative” is selected below from the pull-down option, enter the Sale’s “Superior” status on the “Qualitative” line, and “Downward” on the Adjustment line.  This merely signals something less than the land-mix, time, and “other” adjusted subtotal (shown as “Downward”) is appropriate.



Summary:  There are three adjustment options for each feature.  ASFMRA recommends “quantification” when possible, then apply “qualitative” statements for the remaining differences that cannot be measured.


Conclusion:


For the Sales Comparison Approach, the $/unit conclusion is reconciled at the bottom of the page, and rounded in accordance with the market (users should review the sales used and opine whether they are "unit-based" or "rounded" gross sales prices.