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If agents can use the same techniques an appraiser uses the likelihood of there being a big discrepancy between the contract price and appraisal is reduced. 3) Use bracketing when choosing comps- The technique of using sales that are larger and smaller than the home you are pricing is referred to as bracketing.
The contract price and appraisal value will need to line up or the buyer will not be able to get a loan to pay for the property. When considering sales for comps it is important to bracket the square footage so that you get a more complete picture of how square footage affects the sale price of a home.
For certain parts of the economy, usually in the upper-income brackets, they didn’t carry a lot of debt and they couldn’t go out to spend their money. On the other hand, the four restaurant workers would still need to spend monthly payments for rent, food, transportation, and insurance. Properties are still going under contract.
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