Appraised Value Below Contract Price

[CANative]

If there is a requirement to explain the difference between contract price and MV opinion then why is there no rule, guideline or regulation that states this?

 

[Mr Rex]

You provide them with three reconciled approaches to value. If there is something in the contract that needs explaining then explain it. If there isn't then there isn't.

This is a silly argument.

Its not necessarily something in the contract, other than the agreed upon price, that needs to be considered and reconciled with the opinion of value. See 1-5 & 1-6.

 

[mark hurlock]

How does the intended user understand your rationale if you don't explain?

Because the intended user established the assignment conditions which are widely practiced throughout the industry. One would reasonably expect them to know their own requirements.

 

[Mr Rex]

If there is a requirement to explain the difference between contract price and MV opinion then why is there no rule, guideline or regulation that states this?

There is, it is in the lines I quoted and 1-5 and 1-6. USPAP doesn't require pictures either.:laugh:

 

[CANative]

The controversy is over Calvin's position that the appraiser is obligated by USPAP, GSE policy and the CFRs to explain a difference between contract price and opinion of market value.

No one is arguing that in some (or in many) cases it's wise to do this or maybe even necessary once in a while, but there is no hard and fast rule on it.

 

[Pittsburgh Pete]

And my client has also established what the analysis of the contract is to determine, “for the particular USE”

NOT for every conceivable use. Not every assignment condition is the same. That is why there is no follow by numbers rule book for appraising.

That is why USPAP is written the way it is.

You say you are a litigator?

Attornies are litigators. Your confusion is indicative of so much. You say you're an appraiser?

 

[Mr Rex]

I thinks some State Boards might disagree. There may be an example on here somewhere.

 

[mark hurlock]

The controversy is over Calvin's position that the appraiser is obligated by USPAP, GSE policy and the CFRs to explain a difference between contract price and opinion of market value.

No one is arguing that in some (or in many) cases it's wise to do this or maybe even necessary once in a while, but there is no hard and fast rule on it.

Thank you again!

 

[mark hurlock]

Attornies are litigators. Your confusion is indicative of so much. You say you're an appraiser?

Your argument that sale "price" analysis is required has not been supported.

No confusion there. So you say you are a litigator?

 

[Nancy Price]

I am on the VA fee appraiser panel. It is VA policy that if value opinion is below sale price appraiser is required to ask for comparable sales from requestor of appraisal who in turn will ask Realtors for comparable sales. We are then required to comment on the sales provided. This has always prevented phone calls.