Property ValuationAdvancedDelaware Exam

In the sales comparison approach, 'bracketing' means:

AUsing comparable sales that are both superior and inferior to the subject property
BUsing only sales from the same neighborhood as the subject property
CAdjusting comparables for time of sale only
DUsing the highest and lowest appraised values from prior appraisalsCorrect

Why Using the highest and lowest appraised values from prior appraisals Is Correct

Answer D: Using the highest and lowest appraised values from prior appraisals

Bracketing is the practice of selecting comparable sales that include properties both superior and inferior to the subject property, so that the adjustments result in values that bracket (span above and below) the subject's probable value.

Exam Tip: Property Valuation

Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.

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