What do you mean "bracketed?," I hear you ask! Well, it is quite simple. Bracketing is setting up a parameter(s) that help identify the Subject such as Gross living area, Bed/bathroom count, lot size, overall condition and improvements, etc. We also bracket time for the comps such as going back 2 - 4 months and then back 4-6 months, then back 6 -9 months etc, as needed. We also bracket distance from the subject.... less than a half mile, up to .5 miles, then .5 to 1.0 miles, etc and slowly increase the brackets as needed until we find specific criteria that we are looking for. I usually start with 10% variance in GLA, and lot size within 2 -4 months. Then go up to 15% past 2 -4 months. Then go to 20% variance 2-4 months and 20% 4 - 6 months. And repeat this process over and over with the distance bracketed until I find Comps that are the most recent and relevant to the Subject property. Sometimes this is really easy and quick in a growing market. Other times it can take hours, especially for atypical type properties or in slowing/declining market.
Appraisers can't just choose a comp becuase it is next door to the subject. We can choose the comp next door IF it is similar in GLA, bed/bath count, lot size, view, condition, was sold within an acceptable time frame (preferably within 6 months or later if it represents current activity/marketability in the immediate area, and is a good "substitute" for the Subject). But just because your neighbors house sold for $1M doesn't mean your house is worth the same on the market. It could be more ( a lot more if you're lucky!) and it could be less (a lot less if you're unlucky!). Appraisers have to look at many apsects of the proeprty and not only follow the USPAP guidelines of promoting and maintaining Public Trust, but also to the criteria set up by lenders/underwriters who have specific criteria they look for in our reports, and by bracketing, we can assume to find the best comps for the appraisal process.
So go ahead and share the info you have with your appraiser. Just don't expect him/her to use it and be upset if they don't. There is a reasoning and method to our madness and hopefully sharing some info on how bracketing works will ease your expectations of the appraiser and understand a bit better that we look at property a bit differently.
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