Not bracketed

[Fernando]

My subject's appraised value fell out of the comp price range.
I concluded my appraised value and noticed it fell out of the bracket.
Should I grab another one just to bracket it?
No, I'll submit and see what reviewer says.

 

[Fernando]

Reviewer wants a higher priced comp to bracket my appraised value. Now wants an additional comp. I can assure you 100%, that higher priced comp will support my appraised value.
I'll walk my dog tomorrow morning and take that sale.
I should have appraised below my highest priced comp. Next time I know better.
It was a test for that lender.

 

[sputnam]

No... you should have, and still should, report your opinion of value based on the available data and on your analyses. That's what you should always do. The Client wanting to see bracketing, not just for the adjustments but, also for the raw sales prices of the comparables.... is a common lender guideline. Being the 'Great Fernando', you should have already known that and dealt with it before you delivered your appraisal report. By your own post.. you knew you needed to bracket... and decided not to. This is all on you. Not on the reviewer who caught it.


One of the most annoying.. and in my opinion worst... fails that even good appraisers make is... they think they know the value even before they've done the work. What an appraiser is supposed to do is to gather data, do analyses, and only then, form an opinion of value. You go where the information leads you.

 

[J Grant]

My subject's appraised value fell out of the comp price range.
I concluded my appraised value and noticed it fell out of the bracket.
Should I grab another one just to bracket it?
No, I'll submit and see what reviewer says.

"grabbing" another comp to bracket an otherwise poorly supported value is a skippy trick , if the "comp" grabbed is an outlier price or highly superior to subject - in location or other factor..

If four similar to subject comps indicate a lower value, and the appraiser dumps in a fifth comp that is superior to bracket a high value, either that fifth comp needed a downward adjustment that was not applied ,or should not have been there. 'These kind of reports get a green light when prices are high but when prices drop they are vulnerable to forensic review. This current reviewer is asking for a window dressing additional comp to bracket what might be an otherwise poorly supported value.

Bracketing by sale price should be the sale of a similar to subject comp to make it credible. Why did you leave off that higher price sale the first time?

 

[Tom D]

your appraiser spirit was telling you to add another comp to bracket it. you already knew the answer, but probable felt a little bit lazy that day. it always takes longer to do anything after the appraisal was sent it. i find it more annoying to do an after appraisal change then to just do it while i'm working on it. the potential future annoying factor always wins the day, if i'm trying to do, or not do, something. that's my business decision.
so nobody here has never appraised the highest priced sale in the area? lucky we don't get too many of those.

 

[J Grant]

your appraiser spirit was telling you to add another comp to bracket it. you already knew the answer, but probable felt a little bit lazy that day. it always takes longer to do anything after the appraisal was sent it. i find it more annoying to do an after appraisal change then to just do it while i'm working on it. the potential future annoying factor always wins the day, if i'm trying to do, or not do, something. that's my business decision.
so nobody here has never appraised the highest priced sale in the area? lucky we don't get too many of those.

He was either lazy, or knew the only higher price sale he could find was not really a "comp" and shouldn't be on the grid. Which is it? A highly superior or not similar sale gets called a comp, what a joke.
if the only reason it gets put on the report is to bracket a sale price then the appraiser knows it. Some appraisers are brazen and do it as routine. Others won't do it and if their OMV falls below a SC price they stand behind their OMV

So appraisers have to make a choice-imo, some appraisers are so poorly trained or clueless they see nothing amiss about it. If an appraiser deliberately adds a not similar or superior sale for the sole purpose of price bracket to hit a value they understand what they did, but do it anyway. I never could come to grips with what is worse, doing it out of ignorance or out of intent.

 

[Dublin ohio]

He was either lazy, or knew the only higher price sale he could find was not really a "comp" and shouldn't be on the grid. Which is it?

Neither. Most of Fernando's posts are appraisal 101 questions. It is either trolling or boredom. The only other possible explanation is dumber than a hoe handle.

 

[Fernando]

Bracketing is not in Appraisal 101. It was made up by lenders to force inexperience appraisers to consider the price range.
Real appraiser chooses most appropriate comps regardless of sales price and work the numbers and see where values falls.
By concentrating on price initially, you already bias in your appraisal process.

 

[Fernando]

Anyway I grabbed a higher priced sale from adjacent neighborhood.
Adjusted value over 12% of appraised value. I'm good in supporting my appraised value. Take that reviewer. Don't mess with Fernando.

 

[Fernando]

Reviewer accepted my comp!
A game I have to play.