Our Similarity Score examines all the properties in a given census tract and analyzes which attributes e.g. bedrooms, GLA, etc impact the values of the properties in the tract.
Example:
In one tract, bedrooms might be more valuable than GLA while garages have no impact on value.
In tract two, GLA is more valuable than bedrooms so the addition of a garage has a huge impact on property value.
For each attribute, HouseCanary predicts what the adjustment would be and aggregates what the overall gross adjustments is predicted to be. The smaller the potential adjustment, the more similar the property is to the subject.
Prior sale or listing prices are not taken into account in the Comp similarity score.
The following icons are used to indicate similarity:
High similarity, 0 - 15% predicted gross adjustment
Medium similarity, 15-25% predicted gross adjustment
Low similarity, 25% + predicted gross adjustment.
Unknown similarity. This means either the property is an outlier or data is missing for an important attribute for the census tract, e.g. GLA is identified as an important attribute in the census tract but the GLA data is missing for the comparable.
If you update any attribute that has an impact on value, the similarity score will also be updated.