Comparables bracket the subject: unadjusted prices run $410,000–$455,000 and the subject is under contract at $430,000. What does 'bracketing' accomplish?
Correct Answer
C) It bounds the value conclusion between observed market evidence
Why this is correct: Bracketing uses comparables both superior and inferior to the subject to establish that the indicated value conclusion falls within the range of observed market evidence, providing support and limiting extrapolation. Why the other choices are wrong: "It conclusively proves the contract price is exactly correct" is false; bracketing supports a range, not a precise point. "It replaces the need for any adjustments" is wrong; adjustments are still required. "It guarantees the appraisal passes review" is incorrect; it's a supportive technique, not a guarantee. Exam tip: A value conclusion outside the bracket requires a strong, explained justification.
Why This Is the Correct Answer
Why this is correct: Bracketing uses comparables both superior and inferior to the subject to establish that the indicated value conclusion falls within the range of observed market evidence, providing support and limiting extrapolation. Why the other choices are wrong: "It conclusively proves the contract price is exactly correct" is false; bracketing supports a range, not a precise point. "It replaces the need for any adjustments" is wrong; adjustments are still required. "It guarantees the appraisal passes review" is incorrect; it's a supportive technique, not a guarantee. Exam tip: A value conclusion outside the bracket requires a strong, explained justification.
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