Bracketed GLA

[Susan Hartigan]

I thought bracketed GLA meant that comps could be anywhere within the subject's GLA +/- 20%. Another appraiser friend of mine thinks the comps must be above and below the subject's GLA limited by 20%? Which is it

 

[JRS at OBX]

Above and below is my understanding.

 

[The Warrior Monk]

I thought bracketed GLA meant that comps could be anywhere within the subject's GLA +/- 20%. Another appraiser friend of mine thinks the comps must be above and below the subject's GLA limited by 20%? Which is it

There's no USPAP rule with regard to this matter, though certain lenders may have guidelines.

I personally prefer to have any category the significantly affects value bracketed (or equal to). For my market area that usually means location, lot size, quality, condition, and GLA.

 

[Kevin Mc]

Don't beat yourself up with it......

more often than not your GLA will be bracketed without you even keeping notice of it. Few lenders will call you on it provided your comps are recent quality comps and there are times it isn't possible(over-improvements, new spot builts etc....).

 

[Debra]

I always try to bracket 25% GLA above and below if possible and to bracket the age also...

 

[Charles Witt]

I try to bracket if powssible but my range is much narrower. After 10-15% the accuracy of adjustments seem to fall apart in my opinion.

 

[James Micozzi]

Debra,

If I understand your post correctly, you always bracket the GLA as well as the age. Even when you have good comps with practically identical GLA and age?? That does not seem to be the correct thing to do. why bother? To satisfy some underwriter stips? here in NYC, in most cases, I find good comps (recent sales, within 3-6 months, same style, similar GLA, usually within a 100 Sq. Ft. range) and use them. I do not go out of my way to find comps to bracket the GLA or age. It does happen occassionally in certain areas in the city or on Long Island.

 

[Fred]

Bracketing individual attributes with three sales isn't going to work out any better than juggling three balls with one hand - and for the same reason.

Clearly, the most important "bracket" is aggregate quality. You can have a sale that is both larger and newer, but still inferior to subject. You can have another sale that is both smaller and older, but still superior to subject.

 

[Debra]

Yes, of course, I use the best all-around comparables and usually don't have to go as far as 25% GLA difference. I usually start out with up to 9 sales and maybe a few listings and narrow down to the closest, most recent and overall best comparables (usually 3/4 sales and maybe 1 listing). I'm just saying, for example, that if I have comparables larger than the subject and for my last comparable I had 2 more to choose from and they were identical except that one was slightly larger than the subject and one was slightly smaller, I'd probably use the smaller one (if not both) and bracket the GLA. However, when you are doing mostly RURAL properties, you have to use the best available whatever that is and I'm sure that in Rural properties the differences in GLA and other things are not as comparable to the subject as in NYC or somewhere that you have plenty comparables to choose from. I just realized that I am in the New York appraisers section. Sorry, if I had noticed that earlier, I probably wouldn't have posted here since I'm in Tennessee.

 

[KenRossman]

Good appraisal practice dictates bracketing all major elements, particularly GLA, lot size, location (good ie: water or golf etc. influence / bad - external obsolescence, etc...) and effective age etc.

across the board adjustments eliminate an important check on the validity of your adjustments and indicates the possibility of over/underimprovement.

not bracketing (with significant difference) is just plain sloppy.