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asset valuation purpose

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david lloyd

Thread Starter
Freshman Member
Joined
Aug 29, 2006
Professional Status
Certified Residential Appraiser
State
Florida
I have received an order where the assignement type has to reflect asset valuation purposes. The client indicated that they would like to have or rather say they don't mind comparables which were short sales and or sales where the owner/seller is a bank Normaly I do not use short sales in the report for market value estimate. I understand their intentions as come in at the low end since the market is declining it just does not feel right. The order did not come directly from the client rather from one of those "middle man " company. I,m not supposed to contact the client directly however I asked them to clarify the intended use of the report. I'm pretty sure it is for foreclosure or short sale. I would appriciate any tought about this. I'm workng as a res appraiser for couple of years but we did not experience such declining market in FL obviously.
Thank You for your input
David
 
Last edited:

Dirty Harry

Junior Member
Joined
May 11, 2005
Professional Status
Licensed Appraiser
State
Oregon
Is this an REO appraisal?

:unsure: :icon_question:
 

Ed Falkowski MAI SRA

Senior Member
Joined
Jun 25, 2007
Professional Status
Certified General Appraiser
State
Pennsylvania
I'm workng as a res appraiser for couple of years but we did not experience such declining market in FL obviously.

Huh? You haven't experienced declining markets in Florida? Have you been living in a box?
 

Dirty Harry

Junior Member
Joined
May 11, 2005
Professional Status
Licensed Appraiser
State
Oregon
Huh? You haven't experienced declining markets in Florida? Have you been living in a box?

I wasn't even paying attention to that part of the post...

Doesn't make sense now does it? :new_2gunsfiring_v1:
 
Joined
Jun 3, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
Hi David --

This could be a legitimate assignment -- but you need more information from the client. What is the Intended Use of your report? What do they mean by "asset value"?

If you can get satisfactory answers to these questions, the Scope of Work can be identified.

Assuming this is an REO property, there are many reasons they may be looking for a low ball number -- it could be because they are trying to value their portfolio, or they want to wholesale a group of properties; maybe it's a starting price for an auction. Or maybe they want a lowball report in anticipation of future declines in market value.

At any rate, this is why determining the Intended Use is the starting point.

Good Luck!
 

Greg Bell

Senior Member
Joined
Jul 7, 2006
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Louisiana
Asset valuation is usually for REO properties and not for Mortgage lending purposes.As far as compatibles you are the judge of that.If your area is in decline and many sales are foreclosed homes , REO'S may be acceptable.In some areas I may utilize a sale from the lender to a new buyer.I never include straight Trustee sales as they are usually no where near market conditions.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
David:

aside from the purpose of the report clarification.. ask your cleint if they want Market Value or some other value For example (a market-time limited value) - then develop you appraisal accordingly...

Your post is not real clear on what you are attempting to do:unsure: , or under what condition.... you might want to re-read it and clarify-- use the edit button!
 

JRS at OBX

Elite Member
Joined
Jun 13, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
It sounds like the scope of work requires you to give a quick sale value.
 

George W Dodd

Senior Member
Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Ditto Lee Ann,
This maybe something other than market value. Develop your SOW and find out what definition of value you are using.
 

david lloyd

Thread Starter
Freshman Member
Joined
Aug 29, 2006
Professional Status
Certified Residential Appraiser
State
Florida
Huh? You haven't experienced declining markets in Florida? Have you been living in a box?

No Ed not in a box ; in FLORIDA
Maybe you can tell me when the market was declining before, and I mean before this decline started about15months ago?
 
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