United States Patent [19]
`Hough
`
`111111111111111111111111111111111111111111111111111111111111111111111111111
`US005414621A
`5,414,621
`[11] Patent Number:
`[45] Date of Patent: May 9,1995
`
`[54] SYSTEM AND METHOD FOR COMPUTING
`A COMPARATIVE VALUE OF REAL ESTATE
`
`[76]
`
`Inventor:
`
`John R. Hough, 19014 Capehart Dr.,
`Gaithersburg, Md. 20879
`
`[21] Appl. No.: 846,932
`
`[22]
`
`Filed:
`
`Mar. 6, 1992
`
`[51]
`[52]
`
`[58]
`
`[56]
`
`Int. CI.6 ........................ G06G 7/52; G06F 15/30
`U.S. Cl ..................................... 364/401; 364/406;
`364/408
`Field of Search ............... 364/400,401,402,408,
`364/406
`
`References Cited
`U.S. PATENT DOCUMENTS
`4,648,037 3/1987 Valentino ............................ 364/408
`4,742,457 5/1988 Leon et al. .......................... 364/408
`4,831,526 5/1989 Luchs et al. ........................ 364/401
`5,006,998 4/1991 Yasunobu et al. .................. 364/513
`5,032,989 7/1991 Tornetta .............................. 364/401
`5,083,270 1/1992 Gross et al. ......................... 364/408
`
`OTHER PUBLICATIONS
`Gazis-"Real Estate Investment Analysis System", IBM
`Technical Disclosure Bulletin, vol. 13, No. 11, Apr.
`1971, pp. 3274-3275.
`
`Primary Examiner-Gail O. Hayes
`Assistant Examiner-Joseph Thomas
`
`Attorney, Agent, or Firm-Jacobson, Price, Holman &
`Stern
`ABSTRACT
`[57]
`A system and method for determining comparative
`values of comparable properties based on assessment
`percentages and sales data of the comparable properties
`to ultimately determine a value for a subject property.
`In a first embodiment, the "assessment percentage" is
`the "base property tax" for the subject property and
`comparable property. A price/tax factor is computed
`for each comparable property by dividing the sale (or
`sold) price of the comparable property by its base tax.
`The price/tax factor for each comparable property is
`then multiplied by the base tax of the subject property
`to generate a net comparative value for each compara(cid:173)
`ble property. To take into account appreciation for
`recently sold comparable properties, an average appre(cid:173)
`ciation is obtained for the area in which the subject and
`comparable properties are located. The average appre(cid:173)
`ciation is pro rated to determine the comparative value
`for each comparable property. On the basis of the com(cid:173)
`parative values and other pertinent information, the
`value of the subject property may be set by a real estate
`agent, bank, appraiser, etc. In second and third embodi(cid:173)
`ments, the "assessment percentage" is the "assessed
`value" and "phase value", respectively, which are used
`to compute the comparative values in a manner similar
`to the first embodiment.
`
`5 Claims, 20 Drawing Sheets
`
`PROPERTY CURRENTLY
`FOR s~ J "'"
`6 ~L\'
`
`SUBJECT
`PROPERTY
`
`PRICE
`
`PRICE
`
`PRICE
`
`TAX
`I:-.IFO.
`
`TAX
`INFO.
`
`TAX
`INFO.
`
`TAX
`INFO.
`
`TAX
`INFO.
`
`TAX
`INFO.
`
`TAX
`INFO.
`
`SALE
`PRICE
`
`SALE
`PRICE
`
`SALE
`PRICE
`
`SALE
`TERMS
`
`SALE
`TERM
`
`SALE
`TERMS
`
`I
`I
`____ .J
`100
`REMOTE USER STATION IN
`MULTIPLE USER NETWORK
`
`

`
`u.s. Patent
`
`May 9, 1995
`
`Sheet 1 of 20
`
`5,414,621
`
`FIG. 1
`
`PROPERTY CURRENTLY
`
`SUBJECT
`
`RECENTLY SOLD
`
`~"6 PRrERTY.,&--_p_R~C;.ERTYj \~--"'t
`
`PRICE
`
`PRICE
`
`PRICE
`
`TAX
`INFO.
`
`TAX
`INFO.
`
`TAX
`INFO.
`
`TAX
`INFO.
`
`TAX
`INFO.
`
`TAX
`INFO.
`
`TAX
`INFO.
`
`SALE
`PRICE
`
`SALE
`PRICE
`
`SALE
`PRICE
`
`SALE
`SALE
`TERMS TERM
`
`SALE
`TERMS
`
`18
`
`MULTIPLE LISTING
`COMPUTER DATABASE
`
`21
`
`PROPERTY
`DATA
`
`TAX
`
`16
`
`14
`
`I I PRINTER!- COMPARATIVE
`
`12
`COMPUTATION , - - - - ' - - -1
`UNIT
`
`104 102
`
`DISPLAY
`TERMINAL
`
`108
`
`I
`I
`,10
`I
`
`I
`L ___ _
`
`,...----.17
`TABLE
`STORAGE
`DISPLAY
`I
`TERMINAL -15
`BANK
`I
`_ ____ ...J
`100
`REMOTE USER STATION IN
`MULTIPLE USER NETWORK
`
`TABLE
`STORAGE
`
`t
`
`

`
`u.s. Patent
`
`May 9,1995
`
`Sheet 2 of 20
`
`5,414,621
`
`FIG. 2
`
`IDENTIFY COMPARABLE PROPERTY
`
`I
`22 -[ ACCESS PROPERTY INFORMATION
`
`FOR COMPARABLE AND SUBJECT
`PROPERTIES
`
`20
`
`INPUT DATA ON SUBJECT
`PROPERTY
`
`' - 24
`
`26 -
`
`INPUT DATA ON COMPARABLE
`PROPERTIES
`
`IMPLEMENT ASSESSMENT ANALYSIS
`ROUTINE TO DETERMINE COMPARATIVE - 28
`VALUES
`
`ADJUST FOR HOME IMPROVEMENT
`AND OTHER FACTORS
`
`,-2 9
`
`DETERMINE AVERAGE, AND "HIGH"
`AND "LOW" VALUES
`
`r--30
`
`-,-
`
`31
`
`I PRINT OUT COMPARATIVE VALUES
`
`SET SELLING PRICE BASED ON
`COMPARATIVE VALUES
`
`r--32
`
`34
`
`COMPARE RESULTS FOR EACH
`ASSESSMENT PERCENTAGE VALUE;
`INVESTIGATE FURTHER TO DETERMINE
`REASON(S) FOR DIFFERENCE(S)
`
`

`
`u.s. Patent
`
`May 9, 1995
`
`Sheet 3 of 20
`
`5,414,621
`
`FIG. 3
`
`28
`
`\
`
`DETERMINE BASE TAX FOR EACH
`COMPARABLE PROPERTY AND SUBJECT
`PROPERTY
`BASE TAX = TOTAL PROPERTY TAX -
`(FFBC + OTHER CHARGES)
`~---------------~I------------------~
`
`50 --l
`
`52-
`
`COMPUTE PRICE I TAX FACTOR =
`SALES PRICE / BASE TAX
`FOR EACH COMPARABLE PROPERTY
`
`I
`COMPUTE NET VALUE FOR EACH
`COMPARABLE PROPERTY = BASE TAX
`OF SUBJECT PROPERTY X PRICE I TAX 1-5
`4
`FACTOR FOR EACH COMPARABLE
`PROPERTY
`
`5
`6
`L
`
`DETERMINE APPRECIATION FOR EACH
`COMPARABLE PROPERTY =
`
`AVERAGE APPRECIATION
`NUMBER OF
`X MONTHS SINCE
`SALE OF
`COMPARABLE
`PROPERTY
`
`12 MONTHS
`
`58-
`
`COMPUTE COMPARATIVE VALUE FOR EACH
`COMPARABLE PROPERTY = NET VALUE +
`APPRECIATION
`
`

`
`~
`
`o .....
`r:I'1 [
`
`Q
`N
`
`VI
`\C
`\C
`I-l
`~
`
`f
`
`'"'C a a
`c= •
`
`•
`00
`
`,.---------------SUBJECT PROPERTY -TAX ACCOUNT NUMBER
`
`FOR
`
`MONTH AND YEAR
`STREET
`HOUSE NUMBER
`TAX ACCOUNT ID
`
`~
`~
`e\
`...
`.t::;...
`~
`.t::;...
`...
`U1
`
`FIG. 4
`
`FORMULA
`
`PAGE DOWN
`
`PAGE UP -
`
`TAB -
`
`REMARKS T ABLE PRINT
`
`-
`
`F5 --F9
`
`F3
`
`~ __ --____ --__ --------------------HOME FEATURES--------------------------------~
`
`SAVE
`
`F2
`
`EXIT
`ESC
`MODEL
`FENCED YARD
`DINING ROOM
`KITCHEN·
`PARKING
`DECK
`REC. ROOM
`FAMILY ROOM
`BASEMENT
`FIREPLACE
`EXTERIOR
`BATHS
`BEDROOMS
`STYLE
`TYPE
`LOT SIZE
`AGE
`
`

`
`~
`~
`e\
`-..
`.t::;...
`~
`.t::;...
`-..
`til
`
`r U1
`
`~
`e.
`
`U1
`\C
`
`to
`
`",\C
`~
`~
`
`'"'C a a
`e • 00
`
`•
`
`FORMULA
`
`PAGE DOWN-
`
`PAGE UP
`
`. TAB
`
`FIG. 5
`
`EXIT
`ESC
`MODEL
`FEN
`D
`K
`P
`D ~==================================================================
`R
`F
`E
`F
`E
`B
`B CLOVERDALE PL
`13424.
`S CLOVERDALE PL 13421
`T ~================================================================
`TAX ACCOUNT
`L
`A
`
`SAVE REMARKS TABLE PRINT
`
`F9
`
`F5
`
`F3
`
`F2
`
`[F 4 ] -TAX NUMBER
`[ESC] -EXIT
`
`[SEARCH] -STREE1.' NAME
`[ENTER] -SELECT
`
`90000
`12211
`
`Germantown
`Germantown
`
`SELECT SUBJECT PROPERTY
`
`CITY
`
`ADDRESS
`
`~--~-------------------------SUBJECT PROPERTY-TAX ACCOUNT NUMBER
`
`FOR
`
`MONTH AND YEAR
`STREET
`HOUSE NUMBER
`TAX ACCOUNT ID
`
`

`
`--~
`.t::;...
`~
`--.t::;...
`U1
`
`~
`
`N o
`o .....
`00 =-~ .-t-
`
`0"1
`
`Ut
`\C
`\C
`I-l
`
`f
`
`",\C
`
`'"'C a a
`
`•
`~ • 00
`
`--------------------------------HOME FEATURES----------------------------~
`
`t----------------SUBJECT PROPERTY -SPECIAL FEATURES (5 lines)
`
`FOR
`
`MONTH AND YEAR
`STREET
`HOUSE NUMBER
`TAX ACCOUNT ID
`
`FIG. 6
`
`SAVE
`[F2]
`
`EXIT
`[ESC] -
`
`-MO
`FE
`DI
`KI
`PA
`DE r--REMARKS(cid:173)
`REC. ROOM
`FAMILY ROOM
`BASEMENT
`FIREPLACE
`EXTERIOR
`BATHS
`BEDROOMS
`STYLE
`TYPE
`LOT SIZE
`AGE
`
`

`
`--~
`.t::;...
`~
`--.t::;...
`til
`
`~
`
`~
`o .....
`00 [
`
`-....l
`
`OJ
`\C
`\C
`;...a
`\C
`~ «"
`~
`
`~
`
`•
`00
`~ •
`
`'"'C i
`
`FIG. 7
`
`COMPS SOLD
`
`FEATURES
`
`PAGE DOWN-"
`
`F5 --F9 --TAB --PAGE UP -
`
`PRINT
`
`-
`
`F3
`
`SAVE
`
`F2
`
`EXIT
`ESC
`
`~------------------------------------. FORMULA ----------------------------~
`
`o
`o
`o
`o
`
`BASE TAX
`SPECIAL TAX
`FFBC
`TAX BILL
`
`...----------------SUBJECT PROPERTY -TOTAL TAX BILL
`
`FOR
`
`MONTH AND YEAR
`STREET
`HOUSE NUMBER
`TAX ACCOUNT ID
`
`

`
`~
`N
`--0\
`.t::;...
`~
`--.t::;...
`U1
`
`~
`So
`
`r 00
`
`~ (11
`
`",\0
`~
`~
`
`'"'C i
`e • rJ).
`
`•
`
`FIG. 8
`
`FORMULA
`PAGE DOWN
`
`SUBJECT
`PAGE UP -
`
`TAB
`
`F9 -
`
`F5
`
`F3
`
`HOME FEATURES
`
`CaMPS SOLD ---TAX ACCOUNT NUMBER
`
`SAVE REMARKS TABLE PRINT NEXT
`. F2
`
`EXIT
`ESC
`MODEL
`FENCED YARD
`DINING ROOM
`KITCHEN
`PARKING
`DECK
`REC. ROOM
`FAMILY ROOM
`BASEMENT
`FIREPLACE
`EXTERIOR
`BATHS
`BEDROOMS
`STYLE
`TYPE
`LOT SIZE
`AGE
`
`MONTH AND YEAR
`STREET
`HOUSE NUMBER
`TAX ACCOUNT ID
`
`

`
`--~
`.t::;...
`~
`--.t::;...
`U1
`
`~
`
`~
`C .....
`\C
`.-t-
`tD
`
`00 go
`
`~
`~
`~
`~
`
`Ut
`~
`
`UNSOLD
`
`PAGE DOWN
`
`a
`a
`a
`0.0
`a
`0.0
`a
`0
`0.00
`0
`
`a
`a
`a
`a
`a
`
`~
`
`c= • rJ).
`
`'"'C
`•
`
`FEATURES
`
`PAGE UP -
`
`0
`a
`0
`0
`
`FORMULA
`
`TOTAL T~.1{ BILL
`
`COMPS SOLD -
`
`TABLE PRINT NEXT
`
`TAB
`o
`o
`o
`0.0
`o
`0.0
`o
`o
`0.00
`o
`0
`
`FIG.9
`
`F9 -
`
`F3 --F5
`
`o
`a
`a
`0.0
`a
`0.0
`a
`a
`0.00
`a
`a
`a
`a
`0
`0
`
`SAVE
`-F2---
`
`EXIT
`ESC
`ADJUSTED VALUE
`ADJUSTMENT
`V~.LUE
`NET APPREC %
`NET # MONTHS
`YEAR APPREC %
`NET VALUE
`SUBJECT TAX
`FACTOR
`SALE PRICE
`
`LIST PRICE
`
`BASE TAX
`SPECIAL Tl\.1{
`FFBC
`TAX BILL
`
`•
`
`MONTH AND YEAR
`STREET
`HOUSE NUMBER
`TA..X ACCOUNT ID
`
`

`
`~
`~
`0\
`...
`.t::;...
`~
`.t::;...
`...
`U1
`
`N o
`c .....
`~
`tD a
`00 =(cid:173)
`
`OJ
`\C
`\C
`1-\
`
`",\C
`~
`~
`
`'*
`~
`'"'C a
`•
`~ • 00
`
`FORMULA
`PAGE DOWN
`
`COMPS SOLD
`PAGE UP -
`
`HOME FEATURES
`
`TAX ACCOUNT NUMBER
`
`-
`
`UNSOLD
`
`FIG. 10
`
`TABLE PRINT NEXT
`
`TAB
`
`F9 -
`
`F5 -
`
`REMARKS
`
`F3
`
`SAVE
`F2
`
`EXIT
`ESC
`MODEL
`FENCED YARD
`DINING ROOM
`KITCHEN
`P~..RKING
`DECK
`REC. ROOM
`F~.l1ILY ROOM
`BASENENT
`FIREPLACE
`EXTERIOR
`BATES
`BEDROOt1S
`STYLE
`TYPE
`LOT SIZE
`AGE
`
`MONTH AND YEAR
`STREET
`HOUSE NUMBER
`TAX ACCOUNT 10
`
`

`
`1-6
`~
`...
`.t::;...
`1-6
`.t::;...
`...
`U1
`
`PAGE DOWN·-
`
`FEATURES
`PAGE UP -
`
`FIG. 11
`
`TABLE PRINT NEXT
`
`TAB
`
`F5 --F9 -
`
`----F3
`
`F2
`
`SAVE
`
`EXIT
`ESC
`
`~
`~
`~
`
`00 =- ('D
`
`Q
`N
`c ""I)
`
`(J1
`\C
`\C
`~
`
`~ =
`
`~\C
`'<
`
`'"'C a ('t) = ~
`c= • 00
`
`•
`
`0
`
`0
`0
`0.00
`0
`
`0
`0
`0
`0
`
`LOW:
`
`0
`
`HIGH:
`
`0
`0
`0.00
`0
`
`0
`0
`0
`0
`
`FORMULA
`
`•
`
`TOTAL TAX BILL
`
`UNSOLD
`
`0
`0
`
`0
`0
`0.00
`0
`
`0
`0
`0
`0
`
`AVG VALUE SOLD
`AVG VALUE UNSOLD
`
`VALUE
`SUBJECT TAX
`FACTOR
`LIST PRICE
`
`BASE TAX
`SPECIAL TAX
`FFBC
`TAX BILL
`
`MONTH AND YEAR
`STREET
`HOUSE NUMBER
`TAX ACCOUNT ID
`
`

`
`u.s. Patent
`
`May 9, 1995
`
`Sheet 12 of 20
`
`5,414,621
`
`****************
`
`FIG. 12
`HOMES SOLD
`
`****************
`
`SUBJEC'l'
`
`ONE
`
`TWO
`
`THREE
`
`STREET : Haple Leaf
`NUMBER:
`10055
`
`Naple Leaf
`9910
`
`Maple Leaf
`10001
`
`Tambay
`9933
`
`TAX BILL:
`FFBC:
`SPEC TAX:
`BASE TAX:
`
`I'10NTH #:
`YEAR:
`
`1462
`260
`o
`1202
`
`10
`91
`
`FEATURES
`10
`age:
`1400
`lot size:
`type:ATT/ROW
`style:TH
`3
`bedrooms:
`baths:FB2,HB2
`exterior: WOOD
`fireplee:FR
`basement:FIN,W/O
`fame rm.:BASEMENT
`rec. rm.:
`deek:NO
`parking:OFF STREE
`kitehen:TBL SPACE
`dining:FORMAL
`fned yrd:
`model:HAMPSTEAD
`REMARKS:
`BACKS TO \VOODS
`NEW CARPET
`
`SOLD $:
`
`BASE TAX:
`FACTOR:
`SUBJ TAX:
`NET VALU:
`YR APPR%:
`NET # MO:
`APPRE+/-:
`VALUE:
`
`POINTS:
`CLOSING:
`IMPROVED:
`ADJUST:
`
`ADJ VALU:
`
`1524
`260
`0
`1264
`
`5
`91
`
`11
`2100
`END UNIT
`TH
`
`3
`FB2,HB2
`BRICK
`LR
`FIN
`BASEMENT
`
`NO
`OFF STREET
`TBL SPACE
`FORMAL
`
`WHITFORD
`NEW CARPET
`NEW APPLIANCES
`OAK FLOORS
`144500
`1264
`114.3196
`1202
`137412.1
`4
`5
`1.666666
`139702.3
`
`1300
`2800
`
`-4100
`
`1523
`260
`0
`1263
`
`4
`91
`
`11
`2100
`END UNIT
`TH
`
`3
`FB2,HBl
`BRICK
`LR
`FIN
`BASEMENT
`
`NO
`OFF STREET
`TEL SPACE
`FORMAL
`
`WHITFORD
`
`135000
`1263
`106.8883
`1202
`128479.8
`4
`6
`2
`131049.4
`
`0
`1500
`
`-1500
`
`1554
`260
`o
`1294
`
`4
`91
`
`10
`2100
`END UNIT
`TH
`
`3
`FB2,HB1
`BRICK
`LR
`FIN
`BASEMENT
`
`NO
`OFF STREET
`TBL SPACE
`FORMAL
`
`WHITFORD
`WET BAR
`
`135000
`1294
`104.3276
`1202
`125401.8
`4
`6
`2
`127909.8
`o
`o
`
`135602.3
`
`129549.4
`
`127909.8
`
`

`
`u.s. Patent
`
`May 9,1995
`
`Sheet 13 of 20
`
`5,414,621
`
`*****;:***:~** **
`ONE
`
`SUBJECT
`
`FIG. 13
`HOHES NOT SOLD
`
`TWO
`
`**************
`
`STREET : Haple J~eaf
`NUMBER:
`10055
`
`Maple Leaf Maple Leaf
`10046
`9904
`
`TAX BILL:
`FFBC:
`SPEC TA..,{:
`BASE TAX:
`
`1462
`260
`o
`1202
`
`FEATURES
`age:
`10
`lot size:
`1400
`type:ATT/ROW ,
`style:TH
`bedrooms:
`3
`baths:FB2,HB2
`exterior:WOOD
`fireplce:FR
`basement:FIN,WjO
`fame rm.:BASEMENT
`rec. rm.:
`0
`deck:NO
`parking:OFF STREET
`kitchen:TBL SPACE
`dining: FORMAL
`fncd yrd:
`0
`model: HAlvtPSTEAD
`REMARKS:
`0
`BACKS TO WOODS
`NEW CARPET
`
`1328
`260
`o
`1068
`
`1348
`260
`o
`1088
`
`11
`1400
`ATT/ROW
`TH
`
`3
`FB2,HBI
`BRICK, WOOD
`
`FIN
`BASENENT
`o
`
`NO
`OFF STREET
`TBL SPACE
`COUNTRY KIT
`YES
`FALLSTON
`
`11
`1870
`END UNIT
`'l'H
`
`3
`FB2,HB2
`BRICK
`
`FIN
`BASEMENT
`o
`
`YES
`OFF STREET
`TBL SPACE
`COUNTRY KIT
`
`UPGRADED
`HRDW FLOORS
`BACKS WOODS
`
`BASE TAX:
`FACTOR:
`SUBJ TAX:
`VALUE:
`
`SALE $:
`ADJUST:
`
`130900
`
`1068
`122.5655
`1202
`147323.7
`
`129900
`
`1088
`119.3933
`1202
`143510.8
`
`THREE
`
`Maple Leaf
`10069
`
`1346
`260
`o
`1086
`
`11
`1400
`ATT/ROW
`TH
`
`3
`FB2,HBI
`BRICK, WOO
`
`FIN
`BASEMENT
`o
`
`NO
`OFF STREET
`TBL SPACE
`COMBO
`
`BAR
`GD SHAPE
`
`127900
`
`1086
`117.7716
`1202
`141561.4
`
`AVERAGE NET OF NOT SOLD: 144132.0
`AVERAGE NET OF SOLD
`: 131020.5 HIGH: 137571. 5
`
`LOW:128400.l
`
`

`
`u.s. Patent
`
`May 9,1995
`
`Sheet 14 of 20
`
`5,414,621
`
`FIG. 14
`
`28'
`
`\
`
`52'
`
`,
`
`COMPUTE PRICE l ASSESSED VALUE FACTOR
`= PRICE / ASSESSED VALUE
`FOR EACH COMPARABLE PROPERTY
`
`COMPUTE NET V ALUE FOR EACH
`COMPARABLE PROPERTY = ASSESSED V AI..UE
`OF SUBJECT PROPERTY X PRICE I ASSESSED -5 4'
`VALUE FACTOR FOR EACH COMPARABLE
`PROPERTY
`
`!
`
`5 6
`/ '
`
`DETERMINE APPRECIATION FOR EACH
`COMPARABLE PROPERTY =
`
`AVERAGE APPRECIATION
`
`12 MONTHS
`
`NUMBER OF
`X MONTHS SINCE
`SALE OF
`COMPARABLE
`PROPERTY
`
`58~
`
`COMPUTE COMPARATIVE VALUE FOR EACH
`COMPARABLE PROPERTY = NET VALUE +
`APPRECIATION
`
`

`
`u.s. Patent
`
`May 9, 1995
`
`Sheet 15 of 20
`
`5,414,621
`
`:'::'::': **:': ** ** **,"* ,<"
`
`FIG. 15
`HONES SOLD
`
`****************
`
`SUBJECT
`
`ONE
`
`TWO
`
`THREE
`
`STREET : 1'1aple Leaf
`NUMBER :
`10055
`
`Naple Leaf
`9910
`
`Maple Leaf
`10001
`
`Tambay
`9933
`
`ASSESSED
`VALUE:
`
`HONTH #:
`YEAR:
`
`45080
`
`10
`91
`
`49310
`
`47690
`
`50300
`
`5
`91
`
`4
`91
`
`4
`91
`
`FEATURES
`10
`age:
`1400
`lot size:
`type:ATT/ROVI
`style:TH
`bedrooms:
`3
`baths:FB2,HB2
`exterior:WOOD
`fireplee:FR
`basement:FIN,W/O
`fame rm.:BASEMENT
`ree. rm.:
`deek:NO
`parking:OFF STREE
`kitchen:TBL SPACE
`dining: FORMAL
`fned yrd:
`model: H..l\MPSTEAD
`REMARKS:
`BACKS TO WOODS
`NEW CARPET
`
`SOLD $:
`ASSESSED VALUE SOLD:
`FACTOR:
`ASSESSED VALUE SUBJECT:
`NET VALU:
`YR APPR%:
`NET # MO:
`APPRE+/-:
`VALUE:
`
`POINTS:
`CLOSING:
`IHPROVED:
`ADJUST:
`
`ADJ VALU:
`
`11
`2100
`END UNIT
`TH
`
`3
`FB2,HB2
`BRICK
`LR
`FIN
`BASEMENT
`
`NO
`OFF STREET
`TBL SPACE
`FORMAL
`
`WHITFORD
`NEW CARPET
`NEW APPLIANCES
`OAK FLOORS
`144500
`49310
`2.930440
`45080
`132104.2
`4
`5
`1.666666
`134305.9
`
`1300
`2800
`
`-4100
`
`11
`2100
`END UNIT
`TH
`
`3
`FB2,HBl
`BRICK
`LR
`FIN
`BASEMENT
`
`NO
`OFF STREET
`TBL SPACE
`FORMAL
`
`WHITFORD
`
`135000
`47690
`2.830782
`45080
`127611.6
`4
`6
`2
`130163.8
`o
`1500
`
`-1500
`
`10
`2100
`END UNIT
`TH
`
`3
`FB2,HBl
`BRICK
`LR
`FIN
`BASEMENT
`
`NO
`OFF STREET
`TEL SPACE
`FORMAL
`
`WHITFORD
`WET BAR
`
`135000
`50300
`2.683896
`45080
`120990.0
`4
`6
`2
`123409.8
`o
`o
`
`130205.9
`
`128663.8
`
`123409.8
`
`

`
`u.s. Patent
`
`May 9,1995
`
`Sheet 16 of 20
`
`5,414,621
`
`*********,~****
`
`FIG. 16
`HOt1ES NOT SOLD
`
`**************
`
`SUBJECT
`
`ONE
`
`TIvO
`
`STREET : I'llaple Ileaf
`NUMBER:
`10055
`
`Maple Leaf Maple Leaf
`10046
`9904
`
`THREE
`
`Maple Leaf
`10069
`
`ASSESSED
`VALUE:
`
`45080
`
`41900
`
`42450
`
`41930
`
`FEATURES
`10
`age:
`1400
`lot size:
`type: ATT / Ro\v
`style:TH
`bedrooms:
`3
`batl1s:FB2,HB2
`exterior: WOOD
`fireplce:FR
`basement:FIN,W/O
`fame rm. : BASEMENT
`rec. rm.:
`0
`deek:NO
`parking:OFF STREET
`kitehen:TBL SPACE
`dining:FORNAL
`fned yrd:
`0
`model:HAMPSTEAD
`0
`RE~~S:
`BACKS TO WOODS
`NEW CARPET
`
`11
`1870
`END UNIT
`TH
`
`3
`FB2,HB2
`BRICK
`
`FIN
`BASEMENT
`o
`YES
`OFF STREET
`TBL SPACE
`COUNTRY KIT
`
`UPGRADED
`HRDW FLOORS
`BACKS WOODS
`
`11
`1400
`ATT/ROW
`TH
`
`3
`FB2,HBI
`BRICK, WOOD
`
`FIN
`BASEMENT
`o
`NO
`OFF STREET
`TEL SPACE
`COUNTRY KIT
`YES
`FALLSTON
`
`130900
`
`SALE $:
`ADJUST:
`ASSESSED VALUE SOLD:
`41900
`FACTOR:
`3.124105
`ASSESSED VALUE SUBJECT:
`45080
`NET VALU:
`140834.6
`
`129900
`
`42450
`3.060070
`45080
`137947.9
`
`11
`1400
`ATT/ROW
`TH
`
`3
`FB2,HB1
`BRICK/WOO
`
`FIN
`BASEMENT
`o
`NO
`OFF STREET
`TBL SPACE
`COMBO
`
`BAR
`GD SHAPE
`
`127900
`
`41930
`3.050321
`45080
`137508.4
`
`AVERAGE NET OF NOT SOLD: 138763.7
`AVERAGE NET OF SOLD
`: 127426.5 HIGH:133790.8
`
`Lo\v: 124878.0
`
`

`
`u.s. Patent
`
`May 9, 1995
`
`Sheet 17 of 20
`
`5,414,621
`
`FIG. 17
`
`COMPUTE PRICE I PHASE V ALUE FACTOR
`= PRICE / PHASE VALUE
`FOR EACH COMPARABLE PROPERTY
`
`28"
`
`'"
`
`,
`52'
`
`COMPUTE NET VALUE FOR EACH
`COMPARABLE PROPERTY = PHASE VALUE
`OF SUBJECT PROPERTY X PRICE I PHASE t-5 4"
`VALUE FACTOR FOR EACH COMPARABLE
`PROPERTY
`
`5 6
`
`L
`
`DETERMINE APPRECIATION FOR EACH
`COMPARABLE PROPERTY =
`
`AVERAGE APPRECIATION
`
`12 MONTHS
`
`NUMBER OF
`X MONTHS SINCE
`SALE OF
`COMPARABLE
`PROPERTY
`
`58 -
`
`COMPUTE COMPARATIVE VALUE FOR EACH
`COMPARABLE PROPERTY = NET VALUE +
`APPRECIATION
`
`

`
`u.s. Patent
`
`May 9, 1995
`
`Sheet 18 of 20
`
`5,414,621
`
`**"'*************
`
`FIG. 18
`HOMES SOLD
`
`****************
`
`SUBJECT
`
`ONE
`
`TWO
`
`THREE
`
`STREET Maple Leaf
`NUMBER
`10055
`
`Maple Leaf
`9910
`
`Maple Leaf
`10001
`
`Tambay
`9933
`
`PHASE
`VALUE:
`
`112703
`
`123293
`
`119226
`
`125760
`
`MONTH #:
`YEAR:
`
`10
`91
`
`FEATURES
`10
`age:
`1400
`lot size:
`type:ATT/ROW
`style:'rH
`bedrooms:
`3
`baths:FB2,HB2
`exterior:WOOD
`fireplce:FR
`basement:FIN,W/O
`f am. rm.: BASEr1ENT
`rec. rm.:
`deck:NO
`parking:OFF STP~E
`kitchen:TBL SPACE
`dining: FORMAL
`fned yrd:
`model:HAHPSTEAD
`REMARKS:
`BACKS TO WOODS
`NEW CARPE'f
`
`SOLD $:
`PHASE VALUE SOLD:
`FACTOR:
`PHASE VALUE SUBJECT:
`NET VALU:
`YR APPR%:
`NET # MO:
`APPRE+/-:
`VALUE:
`
`POINTS:
`CLOSING:
`IMPROVED:
`ADJUST:
`
`ADJ VALU:
`
`5
`91
`
`4
`91
`
`4
`91
`
`11
`2100
`END UNIT
`TH
`
`3
`FB2,HB2
`BRICK
`LR
`FIN
`BASEMENT
`
`NO
`OFF STREET
`TEL SPACE
`FORMAL
`
`WHITFORD
`NEW CARPET
`NEW APPLIANCES
`OAK FLOORS
`144500
`123293
`1.172004
`112703
`132088.4
`4
`5
`1.666666
`134289.9
`
`1300
`2800
`
`-4100
`
`11
`2100
`END UNIT
`TH
`
`3
`FB2,HB1
`BRICK
`LR
`FIN
`BASEMENT
`
`NO
`OFF STREET
`TBL SPACE
`FORMAL
`
`WHITFORD
`
`135000
`119226
`1.132303
`112703
`127613.9
`4
`6
`2
`130166.2
`o
`1500
`
`-1500
`
`10
`2100
`END UNIT
`TH
`
`3
`FB2,HBl
`BRICK
`LR
`FIN
`BASEMENT
`
`NO
`OFF STREET
`TEL SPACE
`FORMAL
`
`WHITFORD
`WET BAR
`
`135000
`125760
`1. 073473
`112703
`120983.6
`4
`6
`2
`123403.3
`o
`o
`
`130189.9
`
`128666.2
`
`123403.3
`
`

`
`u.s. Patent
`
`May 9, 1995
`
`Sheet 19 of 20
`
`5,414,621
`
`**;.:*;~*********
`
`FIG. 19
`HOt-lES NOT SOLD
`
`**************
`
`SUBJECT
`
`ONE
`
`TWO
`
`STREET : Maple Leaf
`NUMBER:
`10055
`
`Maple Leaf Maple Leaf
`10046
`9904
`
`THREE
`
`Maple Leaf
`10069
`
`PHASE
`VALUE:
`
`112703
`
`104770
`
`106136
`
`104836
`
`FEATURES
`10
`age:
`1400
`lot size:
`type:ATT/ROW
`style:TH
`bedrooms:
`3
`baths:FB2,HB2
`exterior:WOOD
`fireplce:FR
`basement:FIN,W/O
`fame rm.:BASEMENT
`rec. rm.:
`0
`deck:NO
`parking:OFF STREET
`kitchen:TBL SPACE
`dining: FORMAL
`fncd yrd:
`0
`model:HAMPSTEAD
`0
`REM..~S:
`BACKS TO WOODS
`NEW CARPET
`
`11
`1870
`END UNIT
`TH
`
`3
`FB2,HB2
`BRICK
`
`FIN
`BASEMENT
`o
`
`YES
`OFF STREET
`TBL SPACE
`COUNTRY KIT
`
`UPGRADED
`HRD~'l FLOORS
`BACKS WOODS
`
`11
`1400
`ATT/ROW
`TH
`
`3
`FB2,HB1
`BRICK ,WOOD
`
`FIN
`BASEMENT
`o
`
`NO
`OFF STREET
`TBL SPACE
`COUNTRY KIT
`YES
`FALLSTON
`
`SALE $:
`AD.JUST:
`PHASE VALUE SOLD:
`FACTOR:
`PHASE VALUE SUBJECT:
`NET VALU:
`
`130900
`
`104770
`1. 249403
`112703
`140811. 5
`
`129900
`
`106136
`1. 223901
`112703
`137937.3
`
`11
`1400
`ATT/ROW
`TH
`
`3
`FB2,HB1
`BRICK, WOO
`
`FIN
`BASEMENT
`o
`NO
`OFF STREET
`TEL SPACE
`COMBO
`
`BAR
`GD SHAPE
`
`127900
`
`104836
`1.220000
`112703
`137497.7
`
`AVERAGE NET OF NOT SOLD: 138748.8
`AVERAGE NET OF SOLD
`: 127419.8 HIGH:133790.8
`
`LOW: 124871. 4
`
`

`
`u.s. Patent
`
`May 9, 1995
`
`Sheet 20 of 20
`
`5,414,621
`
`FIG. 20
`
`DIAL MULTIPLE LISTING DATABASE
`AND/OR TAX ASSESSMENT OFFICE
`
`120
`
`SPECIFY ADDRESS OR TAX
`IDENTIFICATION NUMBER FOR
`A PARTICULAR PROPERTY
`
`~-122
`
`RETRIEVE DATA AND RECOGNIZE
`PARTICULAR "SLOTS" DESIGNATED
`FOR THE DATA
`
`COORDINATE DATA INTO PARTICULAR
`"SLOTS" TO FILL ENTRIES OF DATA,
`INCLUDING PROPERTY DATA AND
`ASSESSMENT DATA FOR THE
`PARTICULAR PROPERTY
`
`124
`
`126
`
`YES
`
`

`
`1
`
`5,414,621
`
`SYSTEM AND METHOD FOR COMPUTING A
`COMPARATIVE VALUE OF REAL ESTATE
`
`2
`each valve, and the results of each computation com(cid:173)
`pare with each other, to serve as a check and balance.
`For example, if a subject property has property taxes
`at $1,000 per year and a sold property has property
`5 taxes at $1,200 per year and sold for $120,000, it is desir(cid:173)
`able to know what the subject property is worth in
`relation to the sold property. The present invention
`determines how much that difference is.
`According to a first embodiment of the present inven(cid:173)
`tion, the "base property tax" for the subject property
`and comparable property is determined by subtracting
`from the total property tax any front foot benefit
`charges (FFBC) and other special charges. Next, a
`price/tax factor is computed for each comparable prop(cid:173)
`erty by dividing the sold (or for sale) price of the com(cid:173)
`parable property by its base tax. The price/tax factor
`for each comparable property is then multiplied by the
`"base property tax" of the subject property to generate
`a net comparative value for each comparable property.
`To take into account appreciation for recently sold
`comparable properties, an average appreciation is ob(cid:173)
`tained for the area in which the subject and comparable
`properties are located. The average appreciation is pro
`rated to determine the comparative value for each com(cid:173)
`parable property. Finally, on the basis of the compara(cid:173)
`tive values and other pertinent information, the value of
`the subject property may be set.
`According to the second embodiment of the present
`invention, the "assessed value" of the subject and com(cid:173)
`parable properties are used to determine the compara(cid:173)
`tive values. A price/assessment percentage factor is
`computed for each comparable property, much the
`same way as the pricelbase tax factor in the first em(cid:173)
`bodiment. Next, a net comparative value for each com(cid:173)
`parable property is computed by multiplying the price
`assessment percentage factor for each comparable prop-
`erty by the assessed value of the subject property. Then,
`appreciation is accounted for on a pro rated basis in the
`same manner as in the first embodiment.
`According to the third embodiment, the "phase-in
`value" of the subject and comparable properties is used
`to generate the price/assessment percentage factor.
`Next, a net comparative value for each comparable
`property is computed by multiplying the price/assess-
`ment percentage factor for each comparable property
`by the phase value of the subject property. Then, appre-
`ciation is accounted for on a pro rated basis in the same
`manner as the first and second embodiments.
`In each of the embodiments, the net comparative
`values may be adjusted for improvements to property
`and/or terms of the sales contract for sold comparable
`properties.
`The terms "phase-in value" and "assessed value" may
`have specific meanings in particular jurisdictions. How(cid:173)
`ever, they may be used in other jurisdictions under
`different terms.
`The above and other objects and advantages of the
`present invention will become more readily apparent
`when reference is made to the following description
`taken in conjunction with the accompanying drawings.
`
`BACKGROUND OF THE INVENTION
`The present invention relates to a system and method
`for computing the value of real estate.
`It is often necessary to determine the value of prop(cid:173)
`erty, particularly in real estate sales, mortgage transac- 10
`tions and other transactions relying on the current fair
`market value of property. A common method for deter(cid:173)
`mining the value of property is the comparative market(cid:173)
`ing analysis (CMA). However, CMA has some deficien(cid:173)
`cies. It involves "guess work" on the part of the ap- 15
`praiser and, therefore, often lacks accuracy.
`Banks, appraisers and investors in the secondary mar(cid:173)
`ket that buy mortgages need accurate fair market value
`information of property. Moreover, a standard in the
`property appraising industry would be helpful for spot- 20
`ting "bad" appraisals.
`
`40
`
`SUMMARY OF THE INVENTION
`It is a primary object of the present invention to pro(cid:173)
`vide a system and method for determining the value of 25
`real estate which is more accurate than methods hereto-
`fore known.
`It is another object of the present invention to pro(cid:173)
`vide a system and method for determining the value of
`real estate based on property tax and other property 30
`assessment data.
`It is yet another object of the present invention to
`provide a system and method for determining the value
`of real estate which is trusted by sellers, buyers, apprais(cid:173)
`ers, bankers and investors in the secondary market of 35
`mortgages.
`It is still another object of the present invention to
`save time in determining values of property.
`It is yet another object of the present invention to
`provide long term storage of comparative values.
`Briefly, the present invention relates to a system and
`method for determining comparative values of compa(cid:173)
`rable properties based on combining and comparing
`assessment data and sales data of the comparable prop- 45
`erties to ultimately determine a value for a particular
`property, called the subject property.
`In theory, tax assessors evaluate the value of property
`in the same manner as a bank appraiser, by the compara(cid:173)
`tive market analysis (CMA) technique. The tax assessor 50
`applies a formula to that value to determine property
`taxes. The property may be reviewed periOdically.
`Once the assessed value is determined, a phase-in for(cid:173)
`mula may be used to increase the value every year for a
`definite period of years. The tax assessment related 55
`value may be property tax, "assessed value" or "phase
`value", all of which are referred to hereinafter generally
`under the term "assessment percentage". Therefore,
`according to the present invention, by knowing the
`property taxes paid on property, it is possible to deter- 60
`mine the value of property by applying a processing
`scheme to the tax assessment data. A comparison is
`made of recently sold and unsold property to determine
`a factor. This factor is then applied to data concerning
`the subject property to determine the value of the sub- 65
`ject property. In jurisdictions having multiple assess(cid:173)
`ment percentage vales, it is contemplated that the pres(cid:173)
`ent invention may be performed independently using
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`FIG. 1 is a block diagram of the system according to
`the present invention.
`FIG. 2 is a flow chart illustrating generally the steps
`of the method according to the present invention.
`FIG. 3 is a flow chart illustrating in detail the steps
`for determining the comparative values of comparable
`
`

`
`5,414,621
`
`3
`properties according to the first embodiment of the
`present invention.
`FIGS. 4-11 are illustrations of the display screens
`used to enter the information concerning the subject
`and comparable properties.
`FIGS. 12 and 13 are sample computer print outs of
`the results according to the first embodiment of the
`present invention.
`FIG. 14 is a flow chart illustrating in detail the steps
`of the method according to the second embodiment of 10
`the present invention.
`FIGS. 15 and 16 are sample computer print outs of
`the results according to the second embodiment of the
`present invention.
`FIG. 17 is a flow chart illustrating in detail the steps 15
`of the method according to the third embodiment of the
`present invention.
`FIGS. 18 and 19 are sample computer print outs of
`the results according to the third embodiment of the
`present invention.
`FIG. 20 is a flow chart diagram illustrating the steps
`of downloading property and assessment data from a
`multiple listing database, which data is automatically
`operated on by the present invention.
`
`4
`nallS, a printer 16, a table storage bank 17, and modem
`19 (the purpose of which is described hereinafter). The
`keyboard 12 and display terminal 15 are used to enter
`the data concerning each of the comparable properties
`5 and the subject property (FIGS. 4--11). As will be de(cid:173)
`scribed hereinafter in more detail, this data includes
`assessment data and property data. "Property data"
`includes current selling price or sales price if recently
`sold, number of months since sales contract if recently
`sold, terms of the sales contract such as seller paid clos(cid:173)
`ing costs and finance fees (points) and information con(cid:173)
`cerning the features and amenities of the property/(cid:173)
`house. "Assessment data" is data related to the "assess-
`ment percentage", including tax rate, tax district, and
`the property tax, "assessed value" and "phase value".
`The comparative computation unit 14 operates on the
`data supplied by the keyboard, and in particular the
`"assessment percentage" and sales data, to compute
`comparative values for each of the comparable proper-
`20 ties. Comparative computation unit 14 is a computer
`such as personal computer, or a larger mainframe com(cid:173)
`puter, which runs computer program code for imple(cid:173)
`menting the assessment analysis and has internal storage
`25 memory for storing the program code and also interacts
`with the table storage bank 17 for storing and retrieving
`data related to the various properties. The comparative
`values are ultimately displayed on display terminal 15,
`and printed out by the printer 16 together with other
`information on each of the comparable properties and
`the subject property.
`Alternatively, the assessment and property data con(cid:173)
`cerning the comparable properties and subject property
`may be accessed and downloaded from a multiple lis-
`35 ting computer database 18 via modem 19, under control
`of the comparative computation unit 14. Most multiple
`listing computer databases store property data and may
`also store tax information for properties, as shown sche(cid:173)
`matically in FIG. 1. If the tax data is not stored in the
`database 18, it may be automatically downloaded from
`a tax assessment office 21, if the office has automated
`facilities; or other available data base access to the data(cid:173)
`base 18 from the comparative computation unit 14
`(FIG. 20).
`Turning to FIG. 2, a general outline of the steps
`according to the present invention are shown. The first
`step which is necessary in the first embodiment is to
`identify comparable property (recently sold and cur(cid:173)
`rently for sale) in the same tax district and class (and
`hence same tax rate) as the subject property, shown at
`step 20. This may be done through the use of the table
`of data stored in the storage bank 17, as will be ex(cid:173)
`plained hereinafter, or by "in-the-field" investigations.
`It is preferable, but not necessary, that the comparable
`properties be in the same general location or neighbor(cid:173)
`hood, and perhaps even the same street, to serve as the
`best "comparable properties". Next, in step 22, the
`property information including assessment data and
`property data for the comparable properties are ac(cid:173)
`cessed. The assessment data may be obtained directly
`by accessing the database 18, or tax assessment records
`for a particular jurisdiction. Next, the user inputs the
`assessment data and property data for the subject prop(cid:173)
`erty in step 24 and then for the comparable properties in
`step 26. In sum, the total of the assessment data and
`property data includes a wide variety of information
`(FIG. 4) including the address of the property; property
`tax information including total property tax, "assessed
`
`65
`
`DETAILED DESCRIPTION OF THE
`DRAWINGS
`Glossary of Terminology
`Assessment Percentage
`A general term used to describe the tax assessed pa- 30
`rameter of a subject property or comparable property.
`It may include a phase value, a base tax or an assessed
`value, as well as other values assigned various terms in
`different jurisdictions, which relate to the value of the
`property.
`Price/Assessment Percentage Factor
`The result of the division of the sales price by the
`assessment percentage.
`Net Comparative Value
`The property value determination reached by the 40
`inventive system and process before adjustments
`are made.
`Comparative Value
`The result when adjustments are made to a net com(cid:173)
`parative value for appreciation, improvements 45
`made after the tax assessed date, sales concessions,
`etc.
`Base Tax
`The total property tax minus FFBC and municipal
`charges. It is the true property tax on a property 50
`based