Has anyone attempted to bring Ethics Violations against a Realtor for continually making negative remarks against you?

[J Grant]

alappraisal.com/USPAP/Definitions
For the purpose of the Uniform Standards of Professional Appraisal Practice (USPAP), the following definitions apply: APPRAISAL: (noun) the act or process of developing an opinion of value; an opinion of value. (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services. Comment: An appraisal must be numerically …

USPAP - an appraisal is an opinion of value.

I don't what an opinion of most probable price would be called - a consulting assignment about price ? It is not an appraisal per USPAP., or at least not a MV purpose appraisal. Therefore we can not pull the word most probable price out as a stand alone, and make it about what the most probable price of a house should be, or is a house worth X as a most probable price.

 

[Vermonter]

Today the buyer has to leave and wants to resell. You, as an appraiser, would tell the person that despite the increasing market conditions and ten people lined up to put in $100k+ offers, that his home is not worth more than $95k? $95k is the most probable price?

The most probable price is based on EVIDENCE. Which the prior sale of the subject the day before is a very strong example of. While offers can be evidence of price direction, they can also disappear or fall thru the next day....even in this market.

 

[JeffSH]

The most probable price is based on EVIDENCE. Which the prior sale of the subject the day before is a very strong example of. While offers can be evidence of price direction, they can also disappear or fall thru the next day....even in this market.

I do understand where you guys are coming from now, but we use cash equivalent. Shouldn't we be appraising as if every offer was a cash offer? If five people have pre-approved financing, but the borrower took a cash offer that will close in a few days, how is that less relevant than a closed sale from last week?

 

[J Grant]

I do understand where you guys are coming from now, but we use cash equivalent. Shouldn't we be appraising as if every offer was a cash offer? If five people have pre-approved financing, but the borrower took a cash offer that will close in a few days, how is that less relevant than a closed sale from last week?

Perhaps he meant most probable price as a MV opinion needs evidence of the support from sales in the appraisal/r.

Cash equivalent means financing is considered the equivalent to cash for purpose of appraisal . We can analyze if a cash offer influenced a price as part of sale terms analysis

. Today's pending sale can support reconciliation on higher end as part of trend, but to base an opinion of market value on it? Since appraisal purpose is not to opine a most probable sale price out in the market...the purpose is opine the MV opinion as developed in the appraisal ( at the equivalence of most probable price per the MV definition )

The URAR form states this at top:
The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property.

It does not state this at top :
The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported price opinion of the subject property.

 

[JeffSH]

Perhaps he meant most probable price as a MV opinion needs evidence of the support from sales in the appraisal/r.

Cash equivalent means financing is considered the equivalent to cash for purpose of appraisal . We can analyze if a cash offer influenced a price as part of sale terms analysis

. Today's pending sale can support reconciliation on higher end as part of trend, but to base an opinion of market value on it? Since appraisal purpose is not to opine a most probable sale price out in the market...the purpose is opine the MV opinion as developed in the appraisal ( at the equivalence of most probable price per the MV definition )

The URAR form states this at top:
The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property.

It does not state this at top :
The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported price opinion of the subject property.

I'm done arguing because it's getting circular, but I do appreciate your input. I would never use contract price as the main support of value in a typical, stable market, but current trends are anything but ordinary. I do make sure my sales bracket when I use contract sales, and I come in low that's what the data shows is most appropriate.

I've taken so many classes from the appraisal institute. I feel like if you couldn't use contracts as a main driver of value, that it would be stated somewhere. I truly don't understand why you separate price/value, when the market value definition is based on price. To say we don't provide the client with the value of the home doesn't make sense to me. We develop an opinion of market value. That's the worth. When someone asks, 'what's my home worth?' they're asking you for market value, which is based on the most recent sale prices (or contract prices IMO). Ridiculously busy week ahead of me

 

[J Grant]

I'm done arguing because it's getting circular, but I do appreciate your input. I would never use contract price as the main support of value in a typical, stable market, but current trends are anything but ordinary. I do make sure my sales bracket when I use contract sales, and I come in low that's what the data shows is most appropriate.

I've taken so many classes from the appraisal institute. I feel like if you couldn't use contracts as a main driver of value, that it would be stated somewhere. I truly don't understand why you separate price/value, when the market value definition is based on price. To say we don't provide the client with the value of the home doesn't make sense to me. We develop an opinion of market value. That's the worth. When someone asks, 'what's my home worth?' they're asking you for market value, which is based on the most recent sale prices (or contract prices IMO). Ridiculously busy week ahead of me

I appreciate your reply. However I still believe you did not understand what I was trying to convey. Indeed this is not a stable market. However, appraisal methodology is not supposed to change when a market changes. Appraisal methodology is supposed to be a method that serves all different market cycles and conditions, just as appraisal methodology serves all kinds of diverse properties in diverse geo areas. We analyze trends in an unstable market but we don't abandon basic appraisal principles. That is what makes appraising a reliable product.

I am not separating price and value. I am telling you that market value is an opinion of value, it is not an opinion of price. That is the literal, USPAP definition of an appraisal- an opinion of value.

When someone asks, 'what's my home worth?' you reason the worth is market value, which is based on the most recent sale prices (or contract prices??? (see my post below ).

When someone asks what's my home worth? A non appraiser can answer how they choose. But when someone asks that of an appraiser, - an appraiser's statement it is worth X, is an opinion of market value, and that is an appraisal . (USPAP ) If appraiser blurted out it is worth X without having a work file ,they violated USPAP.

I am busy too ! good luck in your week.

 

[J Grant]

The definition of market value, esp. isolation it as most probable price, is not the same thing as, nor interchangeable with , an opinion of value. (an opinion of value is an appraisal - USPAP)

Therefore this reasoning in italics is flawed :" The definition of market value is the most probable price, therefore the CS price proves itself as the most probable price, therefore the CS is the market value ". That is backwards "appraising", it is backing into the value from price.

 

[ZZGAMAZZ]

I had only one that I just could not bring in at what they wanted. Realtor ripped me a new one on the phone and told me I would never get any more work on her deals. I told her if she had any sales at all I would consider them. She screamed at me there was none. I asked her if she thought I should make some up?
Her sale was on the market for 154 day in a market everything is selling in 3-7 days and yet it sold way over list. I am really rethinking my retirement age. I am so stressed out I don't know what day it is or even what month as I am booked into mid June. I can not keep up this pace. Had a couple reports sent back because I forgot some minor info. Totally my fault but I am thinking it's only a matter of time before I make a big mistake.

I could re-post your post under my own name except for the comment that "I am so stressed out . . . " because we have the ability to control our own workflow and productivity. An interesting recent post discussed an appraiser's desire never to process more than 3 assignments simultaneously, which is interesting because I find that my productivity/income remains virtually the same even if I limit the volume of assignments I accept. I personally would never accept an assignment that I don't think I can finish in less than 72 hours, although I often am unable to do so (despite these 20-hour days)...

 

[Cob]

Same here 1 million dollar homes going $200,000 over asking price with cash offers.

It's even worse in Austin, I see houses listed for $550,000 selling for $850,000, it's full on stupidity.

 

[Alsie35]

It's even worse in Austin, I see houses listed for $550,000 selling for $850,000, it's full on stupidity.

Silicon Valley cash ... I am wary of the "CA voting patterns" some of those people moving in are carrying around in their heads ...