Contributory Value
The amount a component or feature adds to the property's overall value — which is rarely its cost. A $90,000 pool may contribute $25,000; adjustments in the sales grid are measures of contributory value, not cost.
Related Terms
Adjustment
A dollar or percentage modification applied to a comparable sale's price to account for differences between the comparable and the subject property.
Paired Sales Analysis
A technique used to estimate the value contribution of a specific property feature by comparing two sales that are identical except for that one feature.
Over-Improvement (Superadequacy)
An improvement that exceeds what the neighborhood supports — the $400,000 kitchen in a $350,000 market.
More in Market Analysis
View allMarket Conditions
The current state of supply and demand in the real estate market for a particular property type in a defined area.
Absorption Rate
The rate at which available properties are sold or leased in a specific market during a given time period.
Days on Market (DOM)
DOMThe number of days between when a property is listed for sale and when it goes under contract.
Months of Supply
The estimated time it would take to sell all current listings at the current sales pace, calculated by dividing active inventory by the average monthly sales rate.