Bracketing subject

[William jackson]

I know it's important to bracket the subject when doing an appraisal. Lets say you have three comps prior to adjusting them at , $650,000, $640,000, and $640,000. After adjusting the values are $660,00, $655,000
and $635,000. If the comp most similar is the first at $660,000 is it ok for the subject to appraise at that amount, even though none of the comps sold for that much . If the answer is yes, is this considered -not bracketing ?
Thanks, William

 

[Pamela Crowley (Florida)]

Why is the subject superior to all the comps?

 

[William jackson]

Pamela,
The subject is a 4 bed 2 bath. Comp 1 is a 4 bed 2, bath, similar SQ footage but inferior condition. Comps 2 and 3 have 3 bedrooms , 2 bathrooms are smaller in SQ footage , but are in similar condition , upgrading etc . These were the best comps available.
William

 

[Pamela Crowley (Florida)]

What research have you done to find the value difference of a 3 bedroom vs a 4 bedroom?
What research have you done to find the value of the other adjustments?

If someone asked you to prove those adjustments are market driven, how would you do that?

You might be right and the value might be higher than all the comps available at this time. What have you done to prove that? If a reviewer were picking it apart, how would you defend it? Have you looked at Active Listings? If you were personally interested in that house to purchase, what else and where else in your market would you look?

I proven with justifiable data, you're just fine bringing it in above the comps. Just make sure you can prove what you've done.

Let us know what you come up with and why it works. This is the fun and frustrating part of appraising.

 

[Mike Garrett RAA]

Show me where it says the you have to bracket the subject with the unadjusted sales price of the comparables?

 

[Will Trueheart]

Mike,

You don't know where that is written?

Next thing is you'll tell us you don't know the appaiser's handshake 8O

 

[Ted Martin]

William,

Sometimes you just can't bracket. If you believe that the value is the $660,000 then say so. In that price range the 2% difference between you subject and the highest comp probably wouldn't even pay for new carpet.

 

[Charlotte Dixon]

What research have you done to find the value difference of a 3 bedroom vs a 4 bedroom?
What research have you done to find the value of the other adjustments?
If someone asked you to prove those adjustments are market driven, how would you do that?..............................etc. What have you done to prove that? If a reviewer were picking it apart, how would you defend it? Have you looked at Active Listings? If you were personally interested in that house to purchase, what else and where else in your market would you look? AND This is the fun and frustrating part of appraising.

FUN? Well, yes, frustrating. :lol: William...You've been given some expert advise....my only addition/correction is that don't let what Pam said confuse you regarding comparing the subject to the comps. I know exactly what she meant, but don't translate that as meaning we compare a subject to a comp. ...An appraiser never compares a subject to a comp.....it's comp compared to the subject. But them, you know that :lol:

 

[Tim The Enchanter]

How about a 4th comp that sold at $660 or over to bracket it?
If there's nothing higher, make sure to document and explain well. 8)

 

[Lee SW IL]

ocassionally the best house in the neighborhood needs to be appraised.

just the same for the worst house in the neighborhood.