How Precise Do You Need To Be?

[J Grant]

The typical buyer and seller are those in the market and they are not supported to have a single point. The term "most probable" was inserted in there as an attempt to keep appraisers from using the highest sale out there as the market value.

Good lord, I get it, the typical buyer and seller in the market may not have a single point- why do you think the hire an appraiser for? To come up with a single point that is supported by a method ( the appraisal ) the client can rely on.

It used to be highest most probable, now it is most probable. It means most likely or, most probable per the development in the appraisal.

There are times the highest sale can be the MV- if the qualities of the subject are the most similar to the property that sold at the highest price. But the high sale price is not supposed to be the default value, which is why USPAP changed it-I agree with you on that .

 

[residentialguy]

Good lord, I get it, the typical buyer and seller in the market may not have a single point- why do you think the hire an appraiser for? To come up with a single point that is supported by a method ( the appraisal ) the client can rely on.

many reasons, one is to show a supported value that they can rely on. However, my report lets them know that the typical buyer and seller in the market actually does not have a single point that is most probable and that most probable point is a point that they can rely, as it is one of the market supported points that is most probable for the typical buyer and seller.

 

[Mr Rex]

Its funny, in my experience the more affluent folks are more concerned about pennies and dollars than those on the lower end of the income and wealth scale. Rich people are typically "tight" and will squeeze their own pennies to death, but look to utilize other peoples money. Less afluent people just want to get what they qualify for. So for appraisal purposes. maybe the idea of significant digits should be turned on its head...

 

[J Grant]

many reasons, one is to show a supported value that they can rely on. However, my report lets them know that the typical buyer and seller in the market actually does not have a single point that is most probable and that most probable point is a point that they can rely, as it is one of the market supported points that is most probable for the typical buyer and seller.

Gee I think they already knew that ! what is all the goobdly gook about...all the client expects is a well supported appraisal, they are not idiots and realize any one buyer or seller is capable of a set of different probable prices around a property. You don't have to come up with a word salad like you did above to remind them-but if it makes you feel better.....

 

[residentialguy]

Gee I think they already knew that ! what is all the goobdly gook about...all the client expects is a well supported appraisal, they are not idiots and realize any one buyer or seller is capable of a set of different probable prices around a property. You don't have to come up with a word salad like you did above to remind them-but if it makes you feel better.....

Not so worried about the client...its the others that take you to court and claim what you wrote as fact, not "what this really means".

 

[reviewbe]

I just thought the original example was ridiculous and kinda funny.

My understanding is that the degree of rounding should reflect the level of reliability for the estimate. So a figure at the $100 level of rounding on a $1.3M property implies extreme accuracy and reliability. Which is actually misleading the user of the report.

 

[J Grant]

. I highly doubt the appraiser came up with that figure trailing of $600 due to accuracy...perhaps they rote matched a sale price, or used a software program to get the value ? Alamode will suggest a value from software algorithms of the comps and come up with weird numbers like that.

 

[Tom4value]

The appraiser came up with that number because that is the average of the three comps. That is how it is done. Am I right?

 

[ucbruin]

Granted, none of us would have done the same....

But what's the harm???

 

[CindyR]

I have other, more interesting things on which I can waste my time, washing and waxing the cat comes to mind.

Oh my. i'm sure the cat does not want to be waxed. Probably doesn't really want to be washed either but that is not nearly as bad a being waxed.