As Of Effective Date: Meaning

[residentialguy]

I don't disagree with your last post.

Your problem is that you seem to need a sale to bracket. Plus, you have something against a market being "hot". JG, regardless of whether it is a buyer's market or a seller's market, it is what it is....and we report the most probable price with MV terms as of the effective date. Trends don't swing another direction quickly, unless something abrupt happens externally. Trend history backs this and if you have verified pending sales with RE professionals and market conditions showing support, then yes, you do have support. Way more support then your position. You just have an argument from silence and ignoring the other factors.

btw, I don't have a problem with you driving 30 miles to another town to support this, if you need your bracket fix. I do that on complex properties, but not for market trends with so many other supporting factors.

 

[J Grant]

I agree with portions of your above post (eek what is happening....)

Except for this part...and we report the most probable price with MV terms as of the effective date.

Do you mean this bolded above for the subject?

 

[Mr Rex]

Jgrant, the appraiser bracketed by previously closed sales. Ignore current market trends, the highest recent sale sets the ceiling. What a sad synopsis of a clueless appraiser.

 

[residentialguy]

I agree with portions of your above post (eek what is happening....)

Except for this part...and we report the most probable price with MV terms as of the effective date.

Do you mean this bolded above for the subject?

No, we opinion the MV of our own house.

Yes, we report our opinion of MV, (as defined), of the subject real property (with all limitations, assumptions, SOW etc stated in the report) as of the effective date.

 

[J Grant]

I don't have anythign against hot markets, the problem is in a hot market, parties and agents expect our market value opinion to match their high price, which may not have credible support in appraisal terms.

In down markets muy OMV is often not as low either as teh agent who wants a short sale list price to come in "low" for her investor buyer.

The definition of market value applies to the market value opinion in all markets. We cant' selectively adjust REO listings for undue stimulus, yet not adjust or consider undue stimulus in a bidding war that led to a sale price 10% above list price and 15% above last recent high price sale of similar property. As well as the other parts of the definiiton, acting prudently etc. We cant' pick and choose which to apply in some market directions and not others. The terms around the OMV are constant whether a market is stable, rising or declining. The problem is not that of keeping up with trends and finding out a list price, the problem is considering those trends in light of the MV definiton terms as applied to vet a sale . (including the presumed sale of subject we create in the appraisal to derive the opinion )

 

[Mr Rex]

You might want to apply to medicaid/medicare and or your insurance for oxygen. Obviously you are not receiving enough oxygen to your brain.

 

[J Grant]

Jgrant, the appraiser bracketed by previously closed sales. Ignore current market trends, the highest recent sale sets the ceiling. What a sad synopsis of a clueless appraiser.

You summation is false and idiotic. Where did I advise ignoring current market trends? Come view any of my reports and see how I address current market trends. I don't know what your problem is with bracketing, use it or don't use it,who cares.

 

[residentialguy]

I don't have anything against hot markets, the problem is in a hot market, it takes a competent appraiser that goes beyond elementary appraising technique of bracketed sales to do that kind of work.

There...fixed it for you.

 

[J Grant]

Competence does not equal making sure your OMV hits the high sale price even if none of the closed sale comps support it. lol.

 

[residentialguy]

Competence does not equal making sure your OMV hits the high sale price even if none of the closed sale comps support it. lol.

Well, If I or anyone said that or implied that, you'd have a point....but no one did, therefore you don't.