Are we considered an essential service?

[George Hatch]

People may be signing contracts and buying properties.

There are lots of different kinds of values.

But the "value" defined on the 1004 requires certain buzz words

open, competitive and fair sale.

It is possible your seller is considering this sale as "liquidation" because buyers have been ordered to stay at home,

and now you have to justify why the buyer did not stay at home and went out to buy property, oh, wait, investment value can trump orders of the Governor?

See,

should have taken that class.

.

The individual terms open, competitive and fair all have meanings. Moreover, there are explicit clarifications for the application of MV included in the definition that we use for these assignments.

You're hanging 100% of your talking point on the term "open" as used in that clause above, so what does "open" really mean? Does it mean that the government has prohibited any sales transactions from occurring? Or does it mean that the property was exposed to the market and anyone could have submitted an offer?

What has the government actually closed, and how does that closure affect the arms-length relationship between buyer and seller, which after all is what that definition of value is driving at? You mention "liquidation value", so lets consider the merits of your thinking on this:




What would you guess that we're going to find when we look at the pricing and the exposure times of these sales which have closed within the last 10 days? Or (if/when they close) the sales which have entered into contract in the last 10 days? As of this effective date would you expect to find comments in these latest listings about the seller being highly motivated to sell or the pricing to be under market?

Sure, the future is probably going to show a different value trend, but as of the effective date that may or may not not yet have occurred. As I say, this is an opinion to be developed (and supported as we're best able to do so) , not an assumption for appraisers to make.

 

[George Hatch]

Even if you wanted to say that the govt should prohibit appraisers from performing appraisals of any type (which I cannot see happening) that still wouldn't necessarily stop all transactions in the market. I mean, if the sales transactions occurring were limited to all-cash buyers under arms length conditions those sales would still fit the definition of MV as a concept.

A closed market is when there are actual limitations on participation. When only a limited number of participants are aware of the opportunity or are eligible to participate.

 

[Carnivore]

I think there are a few who seem to want to ignore the Dynamics of a Market.

Right now we are marching in place. The indicators will begin to show up as this Covid thing progresses.. People will stop selling and People will Stop Buying. Almost Almost Everyone is on Pause mode.

Several Factors are causing our prices to rise in Charlotte. Its all supply and demand. Migration and Immigration. Sub-factor is Birth Rate. Another Sub-factor is Urban Renewal/Modernization(new Construction). Yankees are coming here in droves.

We don't have enough SFR. We don't even have enough Apartments. See Link

NC is rapidly growing. Where are our new residents moving from? | Carolina Demography

To put that in perspective, three of every four new residents added to North Carolina since 2015 came from net migration.

www.ncdemography.org

California and Yankee States are bleeding, people. Actually I heard or Read they are hemorrhaging when it comes to population. There moving somewhere else. I think they are tired of being Taxed all the way to their Graves.

Question: Just how does the Covid-19 Cause Market Values Change? Stigma? Something else? Maybe people will migrate to the Countryside out of the Sardine Packed Urban Areas. I mean I don't know.

 

[gregb]

Perhaps this is an apt time to review these influences:

the four elements that create value
Demand
Utility
Scarcity
Transferability (Effective Purchasing Power)

categories of external market forces that influence real estate values
Governmental
Economic
Social
Environmental

 

[George Hatch]

I think this event is likely to trigger a reversal in the bull run. To kick off the declining phase of the current RE cycle. But, that's not something I'd say in an appraisal report at this point because I've been wrong before.

 

[Carnivore]

I think this event is likely to trigger a reversal in the bull run. To kick off the declining phase of the current RE cycle. But, that's not something I'd say in an appraisal report at this point because I've been wrong before.

I am with you on that. We really don't know. This uncertainty is killing us. One suggestion I heard that apparently did not get any traction was for Banks to defer two months House payment and stick it on the back of the loan. I don't know if the Banks could take that loss up front like that without Government Intervention. Is two months enough. Its just buying Time until the economy is turned back on. Pres Trump wants things to move faster to avoid the recession and something even worse.

WE are in Uncharted waters. If I sound confused, Well I am.

The Idea that WE APPRAISERS are going to be taken out and shot months down the road is just nonsense.

 

[glenn walker]

Appraisal is a essential service. Doesn't mean that anybody must work or is required to work.

Man up little Joey LMAO

 

[glenn walker]

Even in good times, we've NEVER been considered essential.

You are now !!!