MV opinion vs a price estimate

[JeffSH]

It can get confusing though because the general public and other professionals in the RE industry toss around the terms value and price and market value and price interchangeably,

Here's an example that I hope will help you understand. It's all I got.

A rectangle can be a square if all four sides are equal, but that's not usually the case. The vast majority of rectangles are not squares, but a square is always a rectangle.

 

[J Grant]

Market value is not a perspective on a particular price - it is a price - the most probable price based on......

Oaky I need to amend a few of my prior posts ... to reflect the below...
Market value can describes the transaction of a price ( such as definitions, "Market value is the price a buyer is willing to pay and a seller willing to accept in an open market " etc) Market value can also be a concept about a of groups of prices or trends in the market.

An opinion market value by an appraiser is their perspective on a price , and it can be expressed as a numerical $ price amount.

But a raw price of monies paid and received remains a price - either a price from an actual transaction, or a model price in a hypothetical transaction

 

[J Grant]

Here's an example that I hope will help you understand. It's all I got.

A rectangle can be a square if all four sides are equal, but that's not usually the case. The vast majority of rectangles are not squares, but a square is always a rectangle.

OMG my head is exploding ! will have to think on that one !

 

[JeffSH]

An opinion market value by an appraiser is their perspective on a price

???? I'm doing a private appraisal right now where it is my job to determine a reasonable price. There is no price to give my perspective on.

 

[George Hatch]

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 $ , as of , which is the date of inspection and the effective date of this appraisal.

Can someone tell me where the word "price" appears in the above ?
It is not there. The word PRICE is absent.

You're factually incorrect: the word "price" is literally part of the definition, intent and meaning of MV and that intent is included every time the term MV is used.

 

[George Hatch]

Oaky I need to amend a few of my prior posts ... to reflect the below...
Market value can describes the transaction of a price ( such as definitions, "Market value is the price a buyer is willing to pay and a seller willing to accept in an open market " etc) Market value can also be a concept about a of groups of prices or trends in the market.

An opinion market value by an appraiser is their perspective on a price , and it can be expressed as a numerical $ price amount.

But a raw price of monies paid and received remains a price - either a price from an actual transaction, or a model price in a hypothetical transaction

Set aside the concept of MV for a minute and just give us a straight answer. Exactly what type of "price" are you referring to when you say "price estimate"? Add the longform descriptive qualifier to your use of the term so that it's clear exactly what you're referring to.

 

[J Grant]

You're factually incorrect: the word "price" is literally part of the definition, intent and meaning of MV and that intent is included every time the term MV is used.

Indeed, price is literally part of the DEFINITION of market value. However, an OPINION of market value is not the same thing as a definition of MV.

An opinion of market value is the appraiser's opinion , developed in the appraisal, and can be expressed as a point value price,
Whereas the MV definition describes the terms and conditions of the transaction for the price.

 

[J Grant]

Set aside the concept of MV for a minute and just give us a straight answer. Exactly what type of "price" are you referring to when you say "price estimate"? Add the longform descriptive qualifier to your use of the term so that it's clear exactly what you're referring to.

I never use the word price estimate in my appraisals ! I put it thread title vs opinion, because other appraisers were saying "price estimate" in lieu of a market value opinion in posts.

I am not trying to be evasive, I literally never use that term. I give opinions of market value in an appraisal.

Do you state you give a price estimate in an appraisal ? Or a market value opinion ?

 

[J Grant]

???? I'm doing a private appraisal right now where it is my job to determine a reasonable price. There is no price to give my perspective on.

Fair enough,...but how are you going to state that in the appraisal ?

My opinion of market value is X $?
Or
My opinion of reasonable price is X $?

 

[J Grant]

???? I'm doing a private appraisal right now where it is my job to determine a reasonable price. There is no price to give my perspective on.

Your X $ you conclude will be the price you are giving a perspective on !! ( you just described the price as reasonable - so reasonable is an opinion - on what kind of price it is ). Then the appaisal has to support why you think it is reasonable.

I have a similar private assignment coming up, a former neighbor of mine wants to sell his house to a friend for a fair price ( his words ) . I am not going to give an opinion of "fair price",

I am going to give a market value opinion of market value as defined, and also include an explanation that a cluster of actual prices both higher and lower around my opinion of X $ can be considered reasonable or fair. Then it will be up to them what price they decide on.