Straight from USPAP value, price, opinons

[George Hatch]

All these controversies always come down to "It depends on what "is" is?"

Meanwhile, these terms are defined so there's no reason for a professional appraiser to be using fuzzy language in lieu of the specifics




So what do you think? What would you say is another term for "monetary relationship", that means the same thing?

 

[J Grant]

All these controversies always come down to "It depends on what "is" is?"

Meanwhile, these terms are defined so there's no reason for a professional appraiser to be using fuzzy language in lieu of the specifics

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Exactly. The above says what I have been messaging, Appraisers develop an opinion of value and an appraisal is the act of developing an opinion of value. (value, not price- through we express our opinion as a specific amount (or range )

However, I don't think some appraisers are using "price" instead of value because of fuzzy language. I think they literally believe appraisers are giving an opinion of price but that pesky USPAP thing is just something we sign -l Glen...( see his post 21 and 30)

 

[J Grant]

All these controversies always come down to "It depends on what "is" is?"

Meanwhile, these terms are defined so there's no reason for a professional appraiser to be using fuzzy language in lieu of the specifics

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View attachment 57009

So what do you think? What would you say is another term for "monetary relationship", that means the same thing?

There is no other term for it. Monetary relationship means what it means. A relationship between properties and those who buy and sell - it is a concept, it is not the money itself.

Price is a recorded amount of money paid , a raw $ amount. Humans analyze a relationship between that price and a property, or that price and what others pay for a similar property, etc. Value is a word for that analysis. Price is not an analysis. Price is a fact (UPSAP )

The important thing is appraisers not just sign their name to, or say the language as USPAP intends, but that the appraiser DOES what USPAP intends . The saying is teh reporting, the doing is the appraisal. When appraisers literally believe they give a price opinion, it changes their perception of what they are doing in the appraisal.

USPAP -PRICE: the amount asked, offered, or paid for a property. Comment: Once stated, price is a fact, whether it is publicly disclosed or retained in private. Because of the financial capabilities, motivations, or special interests of a given buyer or seller, the price paid for a property may or may not have any relation to the value that might be ascribed to that property by others.

 

[J Grant]

All these controversies always come down to "It depends on what "is" is?"

Meanwhile, these terms are defined so there's no reason for a professional appraiser to be using fuzzy language in lieu of the specifics

View attachment 57008
View attachment 57009

So what do you think? What would you say is another term for "monetary relationship", that means the same thing?

An appraisal opinion can be numerically expressed as a specific amount, ( the opinion of value of the appraisal is $ X as of...
That amount linked to ( as defined ) - the most probable price at terms of the MV definition - yet it remains an opinion of value (not an opinion of price ).

Some appraisers believe they are opining an actual price expected to occur in the market- ( described as a price prediction)

INTENDED USE: The intended use of this appraisal report is for the lender/client to evaluate the property that is the subject of this appraisal for a mortgage finance transaction.
It does not say The Intended use of this appraisal report is for the lender/client to get a price for the property ! (even if they are keenly interested in the $ amount of the opinion ) if a client uses that opinion of value as an actual price proxy, we have no control over it -

 

[Carnivore]

 

[Zoe]

Hmmmm

 

[Zephyr999]

Way to go Glen. A new pulpit to stand on and spew nonsense from.

Is it cash equivalent or monetary relationship...
Glass half empty or glass half full...
Is it a waiting room or a reception area...
Is that a bank teller or money manager...
Is the world flat or is it round...
How much does that cost or can you tell me the price you paid...
Is that a picture of an old lady or a young woman...

 

[J Grant]

Way to go Glen. A new pulpit to stand on and spew nonsense from.

Is it cash equivalent or monetary relationship...
Glass half empty or glass half full...
Is it a waiting room or a reception area...
Is that a bank teller or money manager...
Is the world flat or is it round...
How much does that cost or can you tell me the price you paid...
Is that a picture of an old lady or a young woman...

I would not have wasted all this time on semantics, if it were a case of using this word or that word. Either you skimmed and did not read the thread or do not understand USPAP ? - if you think value and price are the same/interchangeable wrt appraisers give an opinion of price, or that a market value opinion is an opinion of price. ( or you just felt like trashing a thread )

 

[Zoe]

Price has bias all over it. Market value as defined by 1004 has no bias.

Appraiser better be sure they don't use bias because of ethics rule.

 

[Zephyr999]

I would not have wasted all this time on semantics, if it were a case of using this word or that word. Either you skimmed and did not read the thread or do not understand USPAP ? - if you think value and price are the same/interchangeable wrt appraisers give an opinion of price, or that a market value opinion is an opinion of price.

It is about concepts...it appears distraction by words related to this concept theory is the crux of the issues overall.
Semantics = the study of meaning in language. It can be applied to entire sentence or single words. For example, "destination" or "last stop"...