In the Neighborhood Section, you have the option of defining both a Neighborhood and a Similar Market Area. How these are used is defined below:
We calculate The 1004MC, One-Unit housing and Inventory numbers based on the boundaries you define using the Neighborhood Selection Tool.
Similar Market Area
The area you define under Similar Market Area will be the source of comps that fall outside of the subject’s Neighborhood. This option should be utilized if there are insufficient comparable properties in your subject's neighborhood.
Common scenarios include appraising unique properties or when the neighborhood has low market movement or is sparsely populated.
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