Unadjusted values don't bracket the subject's value

[Mike Ault]

If the only reason to include a sale is for bracketing purposes then it becomes appropriate to explain it that way.

S#5 is not among the "most similar sales" and is given no consideration in my analysis but is included in this report for the sole purpose of meeting the lender's requirements to bracket the subject's attributes. ​

The kids are calling it "malicious compliance"

Unfortunately, they expect you to apply properly derived adjustments for all these bracketing comparables that you dig up from other market areas, which frequently transacted under a completely different supply/demand dynamic with adjustments impossible to reliably quantify. I have offered to add an MLS printout of such comparables to the report, which was never accepted. They expect to see it gridded out as a "comparable property", so they can better sell the loan file off to an unwary investor. That's when I typically proceed to elevate the revision request, until it goes away. I never agree to bracket every conceivable amenity when I accept an assignment.

 

[Terrel L. Shields]

Not much of a problem in commercial - you never know what you get.

I have a transmission shop with 8 lifts. Do you expect me to "bracket" with a shop with 9 lifts? Nope. Extraction and cost related adjustments are the soup de jour.

 

[djd09]

there is a ROV process. they can provide sales. tell them good luck

 

[J Grant]

If the only reason to include a sale is for bracketing purposes then it becomes appropriate to explain it that way.

S#5 is not among the "most similar sales" and is given no consideration in my analysis but is included in this report for the sole purpose of meeting the lender's requirements to bracket the subject's attributes. ​

The kids are calling it "malicious compliance"

I have never written that because I do not bracket just because a lender asks for it or requires" it ( most want it but do not require it) I bracket for the credibility of the report and if I include a comp it is given consideration because it belongs there, even if it gets the least or minor consideration. I have never added a comp and not given it consideration because of this reason, it looks ridiculous - if the sale is on the grid it is either a viable comp or it is not. I don't let a client force me into adding a comp but They almost never ask because I spend a lot of time finding comps and usually use 4-5 closed sales ane they make sense and bracket key features or defects if it is relevant - bracketing for a half bath or other minor features is absurd -

I think some people do not know how to choose comps, do not know how to do research, do not know why they are doing anything or they do it just to avoid stips - and it ends up as a question like this about bracketing, which was screwed up in the title when he said "unadjusted values", it should have been " unadjusted prices".

 

[djd09]

B. No person is allowed to influence or attempt to influence the development, reporting, result, or
review of an appraisal through coercion, extortion, collusion, compensation, inducement,
intimidation, bribery, or any other manner including, but not limited to:

 

[Tim Hicks (Texas)]

As I said before, if you are choosing sales by price, you are appraising to a predetermined value. There is always going to be the lowest valued property in a neighborhood and highest valued property in a neighborhood. That is fact that cannot be solved by bracketing by price.

 

[ZZGAMAZZ]

As I said before, if you are choosing sales by price, you are appraising to a predetermined value. There is always going to be the lowest valued property in a neighborhood and highest valued property in a neighborhood. That is fact that cannot be solved by bracketing by price.

Yours is an interesting comment, and one that I would have agreed with by 100% during the past decade; however, poster JG expressed a perspective recently--that I can't find now but that I can't shake out of my mind--that a supplemental search using selling price as a criteria might provide valuable info that one would otherwise have missed.

Using selling price as a search criteria has been anathema to an objective search--although a protocol that real estate agents inevitably rely upon--however . . .

 

[J Grant]

Yours is an interesting comment, and one that I would have agreed with by 100% during the past decade; however, poster JG expressed a perspective recently--that I can't find now but that I can't shake out of my mind--that a supplemental search using selling price as a criteria might provide valuable info that one would otherwise have missed.

Using selling price as a search criteria has been anathema to an objective search--although a protocol that real estate agents inevitably rely upon--however . . .

I use selling price as a search criterion at the end after I have done my other searches. There is no rule against searching by price, it should not, however be the only search, or an agenda or a comp eliminated because simply because lowers or raises the value-- thought if raises or lowers the value too much out of the reasonable range of the other sales than that sale could be an outer and that is a reason to discard it.

A price search can bring up a property missed on MLS and I don't know why that happens but it does, A search by price also puts the subject value in perspective - what else was sold in that price range - if a buyer can easily get a bigger or new house in that range what does that say about the market or our value...

 

[Tom D]

A price search can bring up a property missed on MLS and I don't know why that happens but it does, A search by price also puts the subject value in perspective - what else was sold in that price range - if a buyer can easily get a bigger or new house in that range what does that say about the market or our value...

bracketing is a form of simple regression. i'm big city, just doing a search within 5 city blocks can give me a 100 sales. why not start with a sales range. obviously that will tell me if there are similar properties in the subject sale price range.
but then again i will get 10-15 sales within 3 blocks, in any price range. i understand rural and rustic suburban issues. i'm just saying how my easy little row homes get done.

 

[J Grant]

bracketing is a form of simple regression. i'm big city, just doing a search within 5 city blocks can give me a 100 sales. why not start with a sales range. obviously that will tell me if there are similar properties in the subject sale price range.
but then again i will get 10-15 sales within 3 blocks, in any price range. i understand rural and rustic suburban issues. i'm just saying how my easy little row homes get done.

Imo, bracketing is not regression. It is choosing a property that has a similar feature to the subject (or a superior or inferior property to demonstrate market reaction )

. Searching by a price range can show how many sales are in that range, but I always start my primary searches for properties similar to the subject features - SF, number of bedrooms, subdivision etc. Then later I might search by price.

If you only search by price range, how do you know if there are lower or higher price sales of properties similar to the subject that were missed in the price range search? You reference a subject sale price - what do you do in a refinance or nonpurchase assignment? I search the same way for both - I search at the end for houses within a range of my market value opinion - a sale price search would also be at the end but most of the time I search around my market value opinion rather than a contract price.