If the comparable property is superior in a feature, you subtract value from the comparable. Example: Comp #l has a 1-car garage and sold for $70,000. … If the comparable property is inferior in a feature you add value to the comparable.
What does superior mean in real estate?
term used in law stating ‘allow the principal to respond’. An owner of property is legally liable for the improper actions of an agent representing him if it is within the scope of the duties reasonably expected to be performed.
What is bracketing real estate?
When developing a sales comparison analysis, “bracketing” refers to selecting comparable properties with features that are inferior, similar, and superior to the subject’s features. Most lenders require that appraiser’s “bracket” the comparables included in the appraisal analysis.
What makes a property a comparable?
A comparable property, also known simply as a “comparable,” is used by appraisers to determine the fair market value of a home. Comparables are recently sold properties that have similar sizes, locations and amenities as the property being appraised.
What is unit of comparison in real estate?
Units of comparison are traditionally related to the size or composition of a property. … The appraiser applies the comparison unit that is most often used in the market for the type of property. Typical units are by square foot, acre, square foot of usable area, and square foot of leasable area.
What is superior title?
Superior Title means a title to, or interest in, the land superior to that held by Network Rail in such land; Sample 1.
What are superior rights?
Superior Right means any right of first refusal or registration right that is, in the good faith judgment of the Company Board, more favorable than the similar rights granted to the Purchasers pursuant to this Agreement or any other Operative Agreement.
What does the principle of substitution say?
A principle of substitution states that a buyer will pay no more for a property than the cost of an equally desirable (and comparable) alternative property.
What is functional obsolescence in real estate?
What Is Functional Obsolescence? … For example, in real estate, it refers to the loss of property value due to an obsolete feature, such as an old house with one bathroom in a neighborhood filled with new homes that have at least three bathrooms.
What if the seller rejected my offer?
Restructure Your Offer
Everything is negotiable in a real estate deal. Just because a seller has rejected your initial offer doesn’t mean you can’t restructure it and resubmit it. If you’re using a real estate agent to find a home, work closely with her to go over your rejected purchase offer.
What radius does an appraiser use?
Most lenders have guidelines wanting appraisers to stay within a one-mile radius, but there is actually no official “one-mile rule” from Fannie Mae. Urban areas (densely populated) typically have comparables within 1 mile.
What two types of data does an appraiser gather?
There are generally two types of data that an appraiser will collect before making their evaluation: specific data and general data. Specific data refers to information gathered on the home itself. The home’s location, amenities, upgrades, size and other factors are all considered specific data.
How do appraisals compare properties?
Features: A home should be compared with properties with the same number of bedrooms, garages, and bathrooms. The comparison should include homes of about the same square footage on parcels of land that are about the same size. Age and condition: It’s important to compare homes of similar age as well as soundness.
How do appraisers compare homes?
By far the most popular appraisal method, the sales comparison approach determines a home’s fair market value by comparing it to similar homes that have recently sold in surrounding neighborhoods. Professionals in the industry often refer to these properties as “comparables” or “comps.”
What makes a good comparable for valuation?
Information derived from comparable market transactions will normally provide the best evidence of value. Such evidence should be recent, relevant and comprehensive. It may come from a variety of sources.