As Of Effective Date: Meaning

[residentialguy]

I don't know what you mean by "So you're an advocate of pushing prices up to the next future level in an appraisal?" I opine the most probable price. I don't go by high listing prices.

You sound like Trump when cornered. He speaks for 5 minutes and never addresses the problem.

The problem you tried to dodge is you saying "Market prices increase by cash buyers paying more, or in a financed sale, by buyer putting down more cash above a market value opinion when it is below sale price."

Again, that was a very definitive statement. Are you flip-flopping? My question above asked; "Can an appraiser support and opine a higher MV then the identical closed sales? (aka increasing trend)"

You answered "sure". Now you say that there has to be a higher sale... supporting your quote above in this post.

 

[Mr Rex]

One of those must bracket everything companies like Sheetlinks has brainwashed JG.

 

[J Grant]

I stand by that statement. Yes, out in the market that is how prices increase.

How do you think prices increase?

I should have added, prices increase with the help of skippy appraisers who push value! That does contribute after all.

 

[J Grant]

How do you support a highest price market value opinion Mr Rex?

I was trained by two SRA mentors how to support value and that bracketing was a good way to do so, it has nothing to do with an AMC. I've appraised twenty million and dollar and above using bracketing it as well as under 100k FHA financed starter homes. Works to show what market actually paid, I fail to see what you think is wrong with that , explain your thinking behind your post.

 

[Mr Rex]

Oftentimes all items can't be bracketed, including a sales price above the unadjusted highest recent sale in an increasing market.Of course it can be bracketed by the adjusted value if time adjustments reflective of the upward moving market is applied. The most recent closed sale is not always the best indicator of market conditions. Analysis of available comparable inventory and list prices of the available inventory are often better indicators than the past sales.

 

[J Grant]

IF a property has superior attributes then a higher price paid for it is also the most probable price. And cost approach and other indicators will support it. The VALUE features of the property itself earned the high price, even when a recent high price sale is lacking the support comes from the property value relative to price.

As opposed to an ordinary property that only has a high price because it got bid up or a RE agent convinced some hapless buyer to pay it. The highest price is not the most probable for an ordinary or inferior property, which would get a mid range or lower price due to features in normal conditions, only is getting a high price due to a bidding war or a low interest rate causing buyers to not care about price etc. Understand the difference?

 

[residentialguy]

How do you support a highest price market value opinion Mr Rex?

I was trained by two SRA mentors how to support value and that bracketing was a good way to do so

I guess if you have no sales, then the property has no value.

How do you support a highest price market value opinion Mr Rex?

With verified pending sales, talking with good local RE market professionals, trend analysis, being informed of the surrounding factors that influence value, to name a few.

 

[J Grant]

Oftentimes all items can't be bracketed, including a sales price above the unadjusted highest recent sale in an increasing market.Of course it can be bracketed by the adjusted value if time adjustments reflective of the upward moving market is applied. The most recent closed sale is not always the best indicator of market conditions. Analysis of available comparable inventory and list prices of the available inventory are often better indicators than the past sales.

What makes them listings better indicators, since they have not closed yet? Why are they better?

And if a time adjustment has already been applied, and the highest comp sale is still below a SC price, what justifies appraising it over that? Because a listing is at a higher price? (assuming subject is an ordinary property nothing special about it where informed buyers would pay a higher price to get the superior product)

Why are appraisers frightened of appraising to what the closed sale comps indicate if it turns out to be below a SC price,, assuming time adjustments and listing influence has been considered? The world does not come to an end. They either negotiate the price down to the OMV or buyer puts in more cash. Sometimes the deal dies. Is it our purpose to keep a deal going? Why are people afraid to appraise where best indicators are ? Per the cert on the URAR, it states the the sales comparison approach is relied on, SALES is the word they use not listings)

 

[J Grant]

I guess if you have no sales, then the property has no value.

That's the dumbest thing posted evah! Have to go out, will rejoin thre thread later.

 

[residentialguy]

I guess if you have no sales, then the property has no value.

That's the dumbest thing posted evah! Have to go out, will rejoin thre thread later.

I hope you told that to your two SRA mentors who taught you that the only way to support value is by bracketing. You don't know any other way, otherwise why would you ask Rex how to do it without bracketing