2055 Drive By With Disposition Value

[FMV]

Hey AF-
Is anyone familiar with this type of assignment??

2055 Exterior with 6 Month Disposition Value

They are giving instructions about it on the EL, but not really making any sense of it..

If anyone has completed one of these, what type of comments do you make?

Any thoughts?

 

[Restrain]

Ok, so you are going to have to make assumptions about the condition of the subject (condition, etc) and outline them in the assumptions and limiting conditions.

Second you are going to have to do an analysis of normal marketing time. Then you are going to have to exterpolate this data to a 6 month disposition time, setting forth your reasoning for the adjustment, if any.

 

[J Grant]

https://www.appraisalcolorado.com/value-vault/disposition-value/

6 months is a long time for market for a disposition value are you sure that is the length of time the client intends to market and offer the property ? DV is more about seller motivation though it can involve a somewhat limited marketing effort/ time though I fail to see how 6 months is a limited time that goes with compulsion to sell, unless typical marketing time for area is over 6 months.\

 

[FMV]

Ok, so you are going to have to make assumptions about the condition of the subject (condition, etc) and outline them in the assumptions and limiting conditions.

Second you are going to have to do an analysis of normal marketing time. Then you are going to have to exterpolate this data to a 6 month disposition time, setting forth your reasoning for the adjustment, if any.

Ok, no problem.. I have the assumptions as far as quality and conditions..

Any good commentary since 6 months does seem to be a long time.. this appears to be a foreclosure drive-by

 

[DWiley]

Also, remember that it is a USPAP requirement for an Appraisal Report to contain the actual value definition. So, when I get assignments like this, I ask the client to provide their actual definition. While there is pretty wide agreement on MV definition, that is not the case when one is dealing with other types of value.

I agree with the observation that a 6 month time period is quite unusual for a DV. another reason I would ask them to provide the specific definition they are using.

Using the definition of DV in the Dictionary of Real Estate Appraisal, the biggest differences between MV and DV are (1) sale within a specified future period of time, and (2) compulsion to sell. But, they may be using a different definition.

 

[George Hatch]

I do both in those assignments in order to demonstrate the effect of the different sets of assumptions. Which sometimes there isn't.

 

[DWiley]

The biggest challenge I see is clients asking for DV (or some other type of non-MV) without specifying what they mean by that Hence, my prior post.

 

[TRESinc]

i have one lending client who sends me these types of orders, but they are always 90 days not 6 months.

 

[Mr Rex]

6 months in most markets I cover would seem excessive for DV currently, however one area I cover still has typical DOM in the 9-12+ month range. Did the field work on 2 in that area today and was surprised by that fact when doing the preliminary research. Some areas have still not recovered or are recovering slower than others. Rural county with lots of issues and limited demand, negative growth trends etc.

 

[TRESinc]

even 90 days in my market, currently, isn't really appropriate. i just looked and for the last 10 lending orders for purchases i have completed the average days on market was 21. we have a lot of frustrated buyers who didn't get their new house before winter began and are now offering over list price on just abut every house on the market. a good friend is looking for a place and they have told me about 5 listings that went into contingency within 2 days of being listed and 2 more that went contingent the day they were listed. buyers are in a frenzy right now and it's only going to get worse over the next 60 days or so.