What does bracketing on size mean?
Correct Answer
B) Relevant sale sizes occur both below and above the subject’s size.
Numerical bracketing places observed sizes on both sides of the subject. It does not prove overall comparability or guarantee interpolation is reliable in a nonlinear market. Exact matching is useful but not the definition, and no count balance is required.
Why This Is the Correct Answer
Option B is correct because bracketing on size means relevant comparable sizes occur both below and above the subject's size. This lets the appraiser see how prices behave on either side of the subject. Bracketing does not by itself prove comparability or ensure interpolation is reliable in a nonlinear market.
Why the Other Options Are Wrong
Option A: All of the sale sizes are slightly larger than the subject’s.
Option A is wrong because having all sale sizes slightly larger than the subject's is the opposite of bracketing. Bracketing needs sizes on both sides of the subject.
Option C: Each sale must equal the subject’s size in square feet.
Option C is wrong because requiring each sale to equal the subject's size describes exact matching, not bracketing. Exact matches can be useful, but bracketing means sizes above and below the subject.
Option D: Use the widest price range without regard to competitive relevance.
Option D is wrong because using the widest price range without regard to competitive relevance is not bracketing. Bracketing concerns relevant sales on both sides of the subject's size, not a broad price spread.
Bracket: one below, one above
Like brackets around a word, the comparables sit on both sides of the subject's size.
How to use: Use this to identify the definition of bracketing in any element of comparison.
Exam Tip
Bracketing answers involve values on both sides of the subject; options with all sales on one side are not bracketing.
Common Mistakes to Avoid
- -Thinking bracketing requires an equal number of sales above and below
- -Choosing all comparables larger than the subject and calling it bracketed
- -Assuming bracketing alone proves the comparables are similar
Concept Deep Dive
Analysis
This question tests the definition of bracketing as applied to size. Bracketing means the comparables' sizes fall on both sides of the subject's size. It does not require exact matches, equal counts on each side, or the widest possible range.
Background Knowledge
Bracketing is a technique for testing and supporting an indicated value by using comparables that are both superior and inferior, or larger and smaller, than the subject. It helps show the subject's value is within a supported range. It does not require equal numbers of sales on each side.
Real-World Application
The subject has 1,850 square feet of living area. The appraiser selects relevant comparables of 1,700, 1,800 and 2,000 square feet so sizes fall on both sides. This helps support the GLA adjustment and the final value indication.
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?
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Previous Question
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?
Next Question
After qualitative ranking, comparable A ($402,000) is inferior to the subject and comparable B ($418,000) is superior. What does this bracketing indicate?