How many comps do you use?

[Surf Cat]

The star of the URAR show is the sales comparison approach, not grouped data.

Now you've done it.... your debunking what the whole appraisal system is going to. Grouped data and AI.

Get your flamethrower suit on..... here it comes.

 

[DWiley]

Grouped data can add additional support. Why would it be a first, or only method? Skipping bracketing with a good comp , (Usually several comps ) is suspect unless there are none available.
One or two or (or more) good comps can take hours to find after eliminating 10 other sales,. These comps are not "data points. " They are carefully vetted indicators of value.

Buyers do not spend 600k to buy a "data point." A comp presents a house that is an alternative choice to a buyer.

The star of the URAR show is the sales comparison approach, not grouped data.

Well, first you have to realize that bracketing in an of itself is not support for anything. Bracketing just allows one to apply sensitivity analysis or pairing (which are the method of support, not the bracketing itself).

 

[NC Appraising]

We live in two worlds....
1. The real world ran by 3-4 differant powers that be.
2. The theory world

Someone over on fakebook posted that class appraisal was sending a bunch of appraisers to the state boards.

A common reason was for across the board adjustments.

Now was it for making across the board adjustments or for making them but not including any so called data or support.


Real world says to always include a stupid sales to bracket any feature no matter how stupid it is.

Theory says to not include stupid sales for bracketing purposes.

Unfortunately we live in the real world where AMCs and lenders are running the asylum. Just do it to aviod buyback.

Ps, a lender also posted that the appraiser marked declining and is going to kill the deal. Thought that bs was over to. I guess some things never change....better go back to marking all middle boxes lol.

My dumb advice to aviod being sent to the board....include stupid crap.

I agree with DW in theory.....

 

[J Grant]

Bracketing is also a method of comps selection, not just a method of support. Of course a bad comp chosen just to bracket is not a viable indicator.

However, competent appraisers prove they are competent because they identify good comps, and the appraisal proceeds from there. Finding good comps and eliminating weak ones can take hours. if need be. I can easily spend 2 hours searching and vetting comps. More when needed. I am lucky if it takes less than an hour. But my reports are solid because of it.

I do not understand the push to turn hours into minutes. This is not fast food burger meals. These are homes worth hundreds of thousands to millions of dollars ,with loans lasting 15- 30 years.

 

[Amy Perkins]

I think that one is the best comp, old or new and it can often indicate if the market is stable or declining if older, then other sales to bracket the features. The problem with using only a few sales is it doesnt really prove the market. Also a pending and an active. Since agents manipulate the DOMs its important to just simply display the truth. If a builder has one or two outside the development or even a remodeled older house this can verify they arent creating a market. As an appraiser you need to really know who is making the sale because they can collude. Monopolistic practices are an absolute problem today and Oligopolies are even more of a problem today. Giants are creating situations where where wages/fees are not meeting costs. We are all getting squeezed in this situation and its not just the banks, AMCs, its the grocery stores, franchises, and the result becomes inequity. The final result is revolution and chaos. People are getting homeless and angry. The FTC is sold out and not doing their job. Remember how the people of France chopped off the heads of royals. The billionaire and trillionare hate is real. I can see where this is going and fair is fair, stop cutting corners just do your job folks; no one wants to pay us what we are worth and I'm aware. Don't worry, its just a matter of time before we cut out the middle man. Its coming up and soon either justice or chaos will prevail.

 

[NC Appraising]

I think that one is the best comp, old or new and it can often indicate if the market is stable or declining if older, then other sales to bracket the features. The problem with using only a few sales is it doesnt really prove the market. Also a pending and an active. Since agents manipulate the DOMs its important to just simply display the truth. If a builder has one or two outside the development or even a remodeled older house this can verify they arent creating a market. As an appraiser you need to really know who is making the sale because they can collude. Monopolistic practices are an absolute problem today and Oligopolies are even more of a problem today. Giants are creating situations where where wages/fees are not meeting costs. We are all getting squeezed in this situation and its not just the banks, AMCs, its the grocery stores, franchises, and the result becomes inequity. The final result is revolution and chaos. People are getting homeless and angry. The FTC is sold out and not doing their job. Remember how the people of France chopped off the heads of royals. The billionaire and trillionare hate is real. I can see where this is going and fair is fair, stop cutting corners just do your job folks; no one wants to pay us what we are worth and I'm aware. Don't worry, its just a matter of time before we cut out the middle man. Its coming up and soon either justice or chaos will prevail.

Allegedly.....something doesn't add up. Typically only 3-6% are allowed...so how the heck are builder getting away with the below?

Yes, it is true. In its Q2 2026 earnings report, Lennar disclosed that it spent an average of 12.9% of the final sales price on sales incentives and buyer concessions. This is a massive jump from Lennar's historical baseline of 4% to 6%, translating to roughly $55,000 in concessions per home. [1, 2, 3, 4]
While 12.9% is hovering right around that 13% mark, this actually represents a minor decrease from Q1 2026, when Lennar's incentives peaked at an aggressive 14.1%. [1]

How Lennar's Concessions Work
Lennar's aggressive pricing strategy is designed to combat high mortgage rates and maintain high sales volumes rather than holding out for higher profit margins. Buyers generally see these concessions distributed across three buckets: [1, 2]

• Mortgage Rate Buydowns: The largest chunk of the money is used to buy down interest rates. Lennar has frequently offered promotional rates far below the market average (sometimes using Adjustable-Rate Mortgages like 5/1 ARMs) to make monthly payments affordable. [1, 3]
• Closing Cost Credits: Lennar often contributes up to $10,000 or more directly toward a buyer’s closing costs.

 

[ZZGAMAZZ]

It is now....

Somewhat germane to this thread... todays job is the purchase of the 3rd smallest SFR of 125 in the 'hood, totally updated, no mandatory garage, an illegal guest unit [ILLEGAL rather than Legal Non-conforming, although the

Yes, your and my focus should always be on the subject and definition of value and property rights being appraised. You don't need comps that don't compete with the subject. It is fine to expand the data for market trends and comparison purposes but you want the best comps and most similar. You want the ones that are most competitive with the subject.

In a homogeneous market, no big deal. In a heterogeneous like I work most of the time, it is a big deal. If an appraiser don't know the market they are working, they can get in trouble.

I don't see how appraisers work in markets they don't know. Like in different States and such or even in same State.

I can see it if subject is located in a very homogeneous subdivision, but all subjects are not that way.

NONE of the residential improvements are located in a homogeneous market. NONE. The nuances of real property are too disparate for like properties to exist, except possibly newer builder subdivisions. Just my opinion.

 

[ZZGAMAZZ]

So, your main point is that you don't have any idea what "most probable" means? Did your mentor ever tell you that one sale doesn't make a market? If one sale doesn't make a market, how could one sale possibly reflect "the" likely impact of a single feature on prices? Those appraisers who steadfastly refuse to learn, or even just understand, "anything" about data analysis or statistics, even though myriad sources outside of appraisal have been developing the field for years, are why requests for these data are being developed. As a whole, appraisers learn what questions will be asked when their reports are delivered. Then, they deliver reports with the sole intent of insuring the fewest number of those questions will be asked by dumping garbage in their reports. Take any issue, and it happens. And dumping one sale in a report and saying, "see, covered it" is just another way of dumping the garbage. Actual analysis, on the other hand, can actually support the conclusion reached by the appraiser.

The following is an excerpt from the last residential report I delivered. Every aspect of the subject was "bracketed" by the 5 sales discussed. A focus on "bracketing" removes focus from "analyzing."

"the prices of these sales all fall within a narrow range (the 5 most heavily weighted had a coefficient of variation (COV) of about 5%), but their property characteristics varied widely. The following are characteristics commonly found to influence sale prices of residential properties, with the COV of that characteristic (in parentheses) for these 5 sales: Age (44%); GLA (30%); Finished basement (75%); Unfinished basement (32%); Baths (24%); Garage stalls (87%)."

The AF tried unsuccfully to explain COV to me last year, although it seems like an extremely meaningful metric. Please take 5 min to explain the %age of any one of the factors/features that you mentioned above. Thanks.

 

[ZZGAMAZZ]

I typically stick to only one comp in an SCA. Easier to estimate adjustments.

My Hero. I'm sure that you would agree with me that the movie "Ted" will withstand the test of time to become a classifc film.

 

[ZZGAMAZZ]

Bracketing is also a method of comps selection, not just a method of support. Of course a bad comp chosen just to bracket is not a viable indicator.

However, competent appraisers prove they are competent because they identify good comps, and the appraisal proceeds from there. Finding good comps and eliminating weak ones can take hours. if need be. I can easily spend 2 hours searching and vetting comps. More when needed. I am lucky if it takes less than an hour. But my reports are solid because of it.

I do not understand the push to turn hours into minutes. This is not fast food burger meals. These are homes worth hundreds of thousands to millions of dollars ,with loans lasting 15- 30 years.

J.G., your comments remind me of a thought that crossed my feeble mind this morning....today's assignment is of an extremely complex SFR in a neighborhood that ostensibly would appear to be homogeneous. It would be soooo easy to devote 30 minutes to report 3 comps that support the selling price... but big old dumb country boy like me will devote 3 - 6 hours to locate appropriate comps that reflect market reaction and also satisfy USPAP and lending guidelines.....but WHY DO SO, regardless that integrity might be all that one has left at the end of the day, although integrity just don't pay the bills or keep the insatiable wolf from banging on the door. SO WHY DO SO????