Bracketing...An Appraisal term you need to know!

Real Estate Appraiser with Lanier Appraisal Service CR004373
  1. ...BRACKETING...What is that? It is an essential process that Appraiser's must follow for most every Lender when selecting comparable sales. Therefore REALTORS need to do the same thing when completing a Market Analysis or BPO.

    When Appraiser's select comps they must Bracket nearly every single feature of the Subject including Sales price, Square footage, Bed and Bath Count, Acreage, Quality, Condition, Basement, Age of home, etc. 

    So if we are looking at a home that is selling for $250,000 with 2,100 square feet, 4 beds, 3 baths, plus a 1,000 finished basement on 1.0 acre, our comps have to include sales that sold below and above this price and are smaller and larger than the subject in Square footage, Acreage, Room Count, Basement finish, etc. 

    Lenders do not want us to adjust UP or DOWN across the Board, that will not typically fly in underwriting. When we adjust for all the variances between the Subject and the Comparable sales, both the Actual Sales price along with the ADJUSTED sales price must be bracketed. ( Adjusted price meaning after all adjustments for variances are made this becomes the Adjusted Sales Price)

    So when you are putting together your Market Analysis for your Sellers keep bracketing in mind along with the fact that you should NEVER price your homes over what all other similar homes inside or outside the development have sold for or there is a GREAT chance it will not appraise. If they have over improved for their area, it will be hard if not impossible for Appraisers to adjust & support UPWARD adjustments for every sale in order to accommodate for these upgrades. Remember this upward adjustment across the board process falls outside of the BRACKETING process.

    Thanks for reading and Please Feel Free to SHARE!!!  

    When in doubt about what a Home should be listed for....consider a Pre-Listing Appraisal.


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Branch, Georgia 30542
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Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Always great to learn something new in the Rain... I knew the concept of bracketing, but had not heard the term used in relation to appraisals.

Apr 15, 2017 06:03 AM #1
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I've never heard the term bracketing, but the concept of what it means is something I've known existed.

Apr 15, 2017 06:40 AM #2
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Great information on Bracketing.....I too was not aware of the exact term

Apr 15, 2017 06:51 AM #3
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

I had heard of this before but forgot about it. Thanks for the reminder and have a great weekend!

Apr 15, 2017 06:53 AM #4
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Mary Thompson Your post is important for many to consider and follow. Bracketing has been followed by us for a very long time

Apr 15, 2017 07:13 AM #5
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Mary Thompson

Lake Lanier Appraiser in North Georgia
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