An appraiser ranks each comparable as superior or inferior to the subject without dollar or percentage adjustments and places the subject within the array. What is this called?
Correct Answer
A) Qualitative analysis (bracketing)
Qualitative techniques rank comparables as superior or inferior without stating dollar or percentage adjustments, and the subject is placed within the ranked array; appraisers often call this bracketing. The other choices are quantitative techniques.
Why This Is the Correct Answer
Option A is correct because qualitative techniques rank comparables as superior or inferior to the subject without stating dollar or percentage adjustments. The subject is then placed within the ranked array, which appraisers often call bracketing.
Why the Other Options Are Wrong
Option B: Paired sales analysis
Option B, paired sales analysis, is a quantitative technique that measures a feature's dollar or percentage effect by comparing matched sales. The scenario uses no stated adjustments.
Option C: Multiple regression analysis
Option C, multiple regression analysis, is a statistical, quantitative method that estimates numeric contributions for several variables. It does not describe ranking comparables without adjustments.
Option D: Capitalizing a rent difference
Option D, capitalizing a rent difference, converts a difference in rent into a dollar value adjustment. That is quantitative, not a superior or inferior ranking.
Rank, don't price: qualitative
If the appraiser only says better or worse, with no dollar figures, it is qualitative. Placing the subject between better and worse comps is bracketing.
How to use: Use this to separate qualitative from quantitative techniques.
Exam Tip
Look for the phrase without dollar or percentage adjustments; it signals qualitative analysis.
Common Mistakes to Avoid
- -Calling any comparison method paired sales
- -Confusing qualitative ranking with regression
- -Thinking bracketing requires dollar adjustments
Concept Deep Dive
Analysis
This question tests recognizing qualitative analysis in the sales comparison approach. When comparables are ranked as superior or inferior without explicit dollar or percentage adjustments, the method is qualitative. Placing the subject within that ranked array is often called bracketing.
Background Knowledge
Sales comparison adjustments can be quantitative, with dollar or percentage amounts, or qualitative, with relative rankings. Qualitative analysis is useful when data cannot support precise adjustments. Bracketing places the subject between comparables that are superior and inferior to it.
Real-World Application
An appraiser has five comparable sales but too little data to support precise dollar adjustments for view. The appraiser ranks each sale as superior or inferior to the subject overall and concludes a value between the closest superior and inferior sales.
More Sales Comparison Questions
Supported adjustments are: non-market financing $10,000, GLA $36/sf, garage $3,500 per car, pool/spa $12,500. A comparable identical to the 2,800 sf subject sold for $267,000 with non-market financing. What is its adjusted price?
Using GLA $36/sf and non-market financing $10,000: a 3,100 sf comparable sold for $277,000 with non-market financing; the subject has 2,800 sf. Bath count differences are not adjusted. What is the adjusted price?
Using garage $3,500 per car and pool/spa $12,500: a comparable with a 2-car garage and a pool/spa sold for $268,000. The subject has a 3-car garage and no pool. What is the adjusted price?
Using GLA $36/sf, garage $3,500 per car and pool/spa $12,500: a 2,600 sf comparable with a 2-car garage and a pool/spa sold for $264,000. The subject is 2,800 sf with a 3-car garage and no pool. What is the adjusted price?
In a neighborhood with declining values and marketing times over six months, what must Fannie Mae lenders confirm about the sales comparison analysis?
A house is a 4,000 square foot home in an area of 2,000 square foot homes. How must the appraiser treat this over-improvement in the sales comparison grid?
According to the Interagency Appraisal and Evaluation Guidelines, which items should an appraisal’s market conditions discussion include?
A comparable listed at $420,000 and sold for $399,000. What sale-to-list price ratio (sale price ÷ list price) does this indicate?
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Which of these is listed by Fannie Mae as a sales or financing concession?
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Previous Question
The subject, a three-bedroom ranch, has five recent sales in its subdivision. Sale A was a transfer from a mother to her son; it was never listed and closed 14% below the other sales. Sale B was a resale by a relocation company that had bought the home from a transferred employee; it was listed on the MLS for 45 days, sold to an unrelated buyer with no concessions, and closed within the range of the other sales. How should the appraiser treat these two sales?
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