As Of Effective Date: Meaning

[J Grant]

what am I making up? I re paste several times the actual verbiage in the definition as well as development of opinion statement from the URAR, to avoid (making it up).

We use examples and corollaries to explain things, how else are concepts explained.

 

[J Grant]

Howard, I did not say anywhere that value should remain constant. I said, the difference between a market value opinion and a price opinion is that a value opinion factors in, often in a comparative manner, (what I called enduring) elements of value. If you hate the word enduring than you do, but in my experience people spend $ on properties expecting key aspects of a property to endure, to last over a period of years beyond closing day. Buyers expect the construction to last X years, for income to flow for X years, for location to provide services and amenities for X years etc.

They may be disappointed of course if that turns out not to be the case, but they expect it which is why they are spending $ to buy rather than rent or lease.

 

[residentialguy]

The word sale is in the MV definition, but not "sale price" I asked where the word sale price is! Happy Monday lol

They both are JG. Price means sale price (what it will sell for). "the most probable price" "the price represents the normal consideration ..."

.Marion, the probable price within the definition of MV is always linked to the appraisal development (which is why any time an appraiser offers an opinion of value they have done an appraisal) You just made the classic move of taking a snippet from the definition as if that were the assignment and can be fulfilled on its own

Our opinion of value is the market value of that property....it is what we believe (and have supported) to be the most probable sale price of that property as of that effective date (no other date implied) under all conditions stated in the definition of MV.

 

[residentialguy]

(RG SAID: Really??? Me thinks you assume too much. I see all the time where the final selling price is GREATER than the listing price)
Which is why relying on listings/pending is less reliable than known prices of closed sales.

Hmmm....then why did you definitively say that it was a declining market based upon a couple lower listing prices?

 

[residentialguy]

JG,
Can an appraiser support and opine a higher MV then the identical closed sales? (aka increasing trend)

 

[J Grant]

I will make two posts for clarity.
Good thoughts and pointing out the word price Res Guy. However we don't express our opinion of market value like this:

My (our) opinion of value of the subject property as of X effective date is $200,000, the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale.

 

[J Grant]

We express our opinion of market value like this:

A) Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting conditions, and appraiser’s certification, my (our) opinion of the market value, as defined, of the real property that is the subject of this report is $ 200,000 as of X date, which is the date of inspection and the effective date of this appraisal.

The AS DEFINED refers to the market value definition. The definition is always linked to the development it is not a stand alone proxy.

 

[J Grant]

JG,
Can an appraiser support and opine a higher MV then the identical closed sales? (aka increasing trend)

Sure, if they can do so credibly and within the MV definition. I've done it on occasion!

They can do so not credibly as well, but that is not a path one might want to take lol

 

[residentialguy]

We express our opinion of market value like this:

A) Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting conditions, and appraiser’s certification, my (our) opinion of the market value, as defined, of the real property that is the subject of this report is $ 200,000 as of X date, which is the date of inspection and the effective date of this appraisal.

The AS DEFINED refers to the market value definition. The definition is always linked to the development it is not a stand alone proxy.

JG, as defined is merely shortening your example in #57. It is saying the same thing. You say Market value , as defined...means the same thing as "the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale".

 

[Mark K]

Just shoot me...

Two things in life I've seriously regretted:

1. Voting for Jimmy Carter.

2. Wasting time and effort in forum discussions with Grant.

Walk away while you have your sanity.