When suitable competitive closed sales are available, an appraiser elects to bracket a three-bedroom subject's bedroom count on both sides. What does that technique mean?
Correct Answer
C) Include suitable sales with fewer and more bedrooms than the subject
To bracket on both sides of a subject with three bedrooms, suitable competitive sales can include counts below and above 3, such as 2 and 4. That can help assess the applicable adjustment range. It is not a universal rule that every feature must be bracketed, that exactly nine sales are required or that equally suitable homes with three bedrooms should be rejected. Comparability and support remain essential.
Why This Is the Correct Answer
Option C is correct because bracketing a three-bedroom subject means including suitable sales with fewer bedrooms, such as two, and more bedrooms, such as four. This places the subject within the range of the comparables and can help assess the applicable adjustment.
Why the Other Options Are Wrong
Option A: Select sales whose bedroom counts are below the subject’s
Option A, selecting only sales with bedroom counts below the subject's, places all comparables on one side. That is the opposite of bracketing, which needs sales both below and above the subject.
Option B: Require exactly nine sales and prohibit any bedroom adjustments
Option B, requiring exactly nine sales and prohibiting bedroom adjustments, has nothing to do with bracketing. Bracketing sets no fixed number of sales and does not forbid adjustments.
Option D: Disregard room counts and compare the flood-zone labels of the sales
Option D, disregarding room counts and comparing flood-zone labels, abandons the bedroom feature the appraiser chose to bracket. Flood zone is a separate characteristic and does not define bracketing.
Bookends around the subject
Picture the subject as a book held between two bookends, one smaller and one larger in the feature being bracketed.
How to use: Use this when a question asks what bracketing a feature means.
Exam Tip
Bracketing means some comparables below and some above the subject, but it is not a requirement that every feature be bracketed.
Common Mistakes to Avoid
- -Choosing comparables all on one side of the subject
- -Believing bracketing requires a set number of sales
- -Rejecting suitable sales that match the subject's feature
Concept Deep Dive
Analysis
This question tests the meaning of bracketing in comparable selection. Bracketing means choosing comparables that fall on both sides of the subject for a given feature, so the subject's characteristic lies within the range of the sales.
Background Knowledge
Bracketing is a technique where comparables are selected so that some are superior and some inferior to the subject in a given feature. When the subject falls within the range of the comparables, the adjusted results tend to be better supported. It is a useful practice rather than a universal rule, and equally suitable sales that match the subject can still be used.
Real-World Application
An appraiser valuing a three-bedroom home selects one competitive two-bedroom sale and one four-bedroom sale along with a three-bedroom sale. The range helps the appraiser judge whether the bedroom adjustment is reasonable.
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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