Bracketing

[jdbiggers]

If you intentionally choose sales that "brackets" particularly a value, isn't that the same as choosing sales based on a pre-determined value? How do you know which sales to use unless you know what the value outcome from the sales should be?

Whenever I was requested to include an additional sale for "bracketing," I simply explained this and also explained that including a sale which was NOT felt to be more relative simply for the purpose of satisfying a non-appraisal requirement could result in a report which is potentially less reiable and perhaps misleading. They always accepted the report as is after that.

John

 

[LACKLAND27]

I believe what they are looking for is that:

• At least 2 unadjusted sales prices support the final opinion of value. (@ or above)

• The final opinion of value is supported by the adjusted values.

Every report that left my shop in the past 15 yrs always met that criteria. And of course the GLA is bracketed and all comps are within 20% variance of the subject GLA, with ½ mile, 6 months etc. whenever possible or a comment addressing why not was made.

 

[OminousRun]

I believe what they are looking for is that:

• At least 2 unadjusted sales prices support the final opinion of value. (@ or above)

• The final opinion of value is supported by the adjusted values.

Every report that left my shop in the past 15 yrs always met that criteria. And of course the GLA is bracketed and all comps are within 20% variance of the subject GLA, with ½ mile, 6 months etc. whenever possible or a comment addressing why not was made.

Hypothetical: Say your subject is a 2000sf new construction single family with a pool and a 2 car garage. You have 9 comparable sales in the last year, but the largest ones you can find are 1800 sf, with 2 car garage and no pools. They are all older than two years in age.

What do you do under your own criteria?

 

[The Warrior Monk]

IMHO, it is preferable to bracket the market value of the subject property with the unadjusted sales prices of the comparable sales. There have been extremely few instances I've come across where I haven't been able to, and I get to appraise some winners.

However, the analysis doesn't stop at some adjusted sales slapped on the grid with some adjustments. Additional information can be included in the narrative, such as land sale activity, pending sale activity, listings, and additional sales that are not particularly comparable.

To give an example, say you have a property improved with a 3,000 sq.ft. house, where most of the homes are 2,500 sq.ft. and less, on 0.50 parcels, selling for $250,000 or less...nothing of that size has sold in the subject's immediate community. However, there is a sale of a 25-acre property, with a 10,000 sq.ft. home, a few miles away, in a superior neighborhood, that sold for $500,000. That sale clearly demonstrates what the subject property is worth less than, while the $250,000 properties indicate what the subject is worth greater than. While most appraisers wouldn't include the estate property in a grid, considering and analyzing it, and discussing it in the narrative, clearly demonstrates support for the value conclusion.

 

[Verne Hebert]

Ominous,

You are going to comment on the lack of current data and supply and older sale--sale # 4.......purely to support the fact that your property is not superadequate, assuming of course that you do not believe, as a result of your research (std 1) superadequacy exists.