Three comparables have been selected for a 2,050-sf home built in 1996 on a 7,800-sf site: Sale 1, 1,880 sf, built 1992, 8,400-sf site; Sale 2, 2,240 sf, built 2001, 8,900-sf site; Sale 3, 2,120 sf, built 1999, 9,300-sf site. Which elements of comparison do these sales bracket?
Correct Answer
A) GLA and age, but not site size
GLA is bracketed because Sale 1 (1,880 sf) is smaller and Sales 2 and 3 (2,240 and 2,120 sf) are larger than the 2,050-sf subject. Age is bracketed because Sale 1 (1992) is older and Sales 2 and 3 (2001 and 1999) are newer than the 1996 subject. Site size is not bracketed because all three sites (8,400 to 9,300 sf) are larger than the 7,800-sf subject.
Why This Is the Correct Answer
Option A is correct because Sale 1 is smaller and older than the subject while Sales 2 and 3 are larger and newer, so GLA and age are bracketed. Every site, from 8,400 to 9,300 sf, is larger than the subject's 7,800 sf, so site size is not.
Why the Other Options Are Wrong
Option B: GLA and site size, but not age
Option B, GLA and site size but not age, is wrong on two counts: no site is smaller than 7,800 sf, and the 1992 and 1999 to 2001 build years fall on both sides of 1996.
Option C: Age and site size, but not GLA
Option C, age and site size but not GLA, misses that Sale 1's 1,880 sf is below the subject's 2,050 sf, and it treats site size as bracketed when all three sites are larger.
Option D: GLA, age and site size
Option D, GLA, age and site size, overlooks that the smallest comparable site, 8,400 sf, is still larger than the subject's 7,800 sf.
One above, one below, each line
Run down the grid one line at a time and ask whether at least one sale sits above and one below the subject on that line.
How to use: Use this when a question lists several features for each sale and asks which are bracketed.
Exam Tip
Write the subject's figure for each element and mark each sale plus or minus; an element with only one sign is not bracketed.
Common Mistakes to Avoid
- -Assuming a set that brackets size also brackets every other element
- -Comparing build years to each other instead of to the subject
- -Reading a sale equal to the subject as bracketing
Concept Deep Dive
Analysis
The question requires checking each element separately: for each, look for at least one sale below and one above the subject. Two elements pass and one fails, and the failing one is where the analysis leans on an adjustment without a sale on the other side.
Background Knowledge
Bracketing is tested element by element. A set of sales may bracket some characteristics, such as living area and age, while leaving another, such as site size, outside the range. The appraiser then knows which adjustments are checked by the data and which rest on the adjustment estimate alone.
Real-World Application
An appraiser's three best sales bracket the subject's size and age but all sit on larger lots. The appraiser notes that the site adjustment is not bracketed and supports it with land sales or a smaller-lot resale from the neighborhood.
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?
An appraiser wants to describe the neighborhood boundaries in a Fannie Mae report. Which approach is acceptable?
Which of these is listed by Fannie Mae as a sales or financing concession?
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Previous Question
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