Property Valuation
A Florida appraiser uses 'bracketing' in the sales comparison approach. This means:
ASelecting comparable sales all equal to the subject
BSelecting comparable sales that bracket the subject (some superior and some inferior) to support the value estimate✓ Correct
CBracketing the time period of comparable sales to the last 90 days
DUsing only sales within a half-mile radius
Explanation
Bracketing in the sales comparison approach means selecting comparables that are both superior and inferior to the subject property in key characteristics. Having comparables on both sides of the subject provides a value range within which the subject's value falls.
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Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
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