Finally. Thank you
I never ignore sales history or the example it sets. But, we're looking for most probable as demonstrate by the group, not the one. And don't forget, the broker in the 2016 sale was smart enough to list both properties separately so they were at least *considering* the alternative that you are so casually dismissing.
Anyways, in addition to your subject's sale history, if you're doing an appraisal, what will all your best comps in the SCA look like? A or B?
Another Profound Statement above.
The Broker was essentially conducting a HBU on both Properties! The question: Why was the Broker Doing this? First reason is the Broker has a Fiduciary Responsibility to the Client! They also know and respect the Seller wants and needs. Why would the Broker recommend the different ways to market the properties. I think the Broker is doing this so they would be able to expand the Exposure to the widest range of potential buyers simultaneously The Broker recognizes the Seller may or may not understand that an SFR sells rather quickly in comparison to Vacant Land. Another reason the Broker has explained all this is because they want the Seller to be well Informed(Component of the common Definition of of market Value in the URAR).
So the Broker provides the Clint/aka seller (intended user of the Broker services). Three BPO's; House and its site,; The Extra site and finally the SFR, & extra Site combined. In the BPO summation the Broker spells delineates the Time it will take to sell in each BPO.
1. House and its site exposure 15-30 days
2. The Extra Site by itself will sell in about 60 days exposure because demand is relatively high for New Builds sites.
3. Thirdly the Combined House and extra site will take about 365 days exposure because demand is very low for Double Lot SFR's.
So the Brokers goes on to explain in depth to the Seller, their Client the current market. The Broker explains to the seller Jeff Bezo's is moving Amazons 2nd Hq's here because the area has changed from a Cotton Mill Industry predominate employer to a Service Based Employer and most of his employers are Young College educate crowd who value free time in the form of Mountain Biking, Hiking, hiking on the weekends. They don't want a lot of Yard Maintenance, and the Lawn Care Companies are expensive. "Sir, your HOA is strict on Grounds keeping and this extra cost equates into $20,000 less in Home Purchasing power with the two sold together.
Seller Responds lets sell both in the Shortest reasonable Time that maximizes my net. No point waiting for my money and also it leaving money on the table!
Broker says sign here on the listing agreement and I will a sign in both yards. This will be in MLS tonight so I need to have a Universal Lock Box on your front door.
Seller: Lets Do It!
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Question for anyone: Do you see the word(s)
Federally Regulated Lender anywhere in the below Definition?
"The most probable price (in terms of money) which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: the buyer and seller are
typically motivated; both parties are well informed or well advised, and acting in what they consider
their best interests; a
reasonable time is allowed for exposure in the open market; payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."
How about this one: Determining Fair Market Value
(IRS Guidelines) Fair market value is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts
Is this germane to our assignment?
Definition of value-in-use Value-in-use of an asset is the net present value of cash flows or some other benefits which is generated by an asset in a certain use for a certain owner. This term is used in the U.S. and...
www.readyratios.com
Value-in-use is the net present value (NPV) of a cash flow or other benefits that an asset generates for a specific owner under a specific
use. In the U.S., it is generally estimated at a
use which is
less than highest-and-best use, and therefore it is generally lower than
market value.
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So my 2nd question to anyone: Where is the Market Value entered on the Standard URAR 1004. and Why is it entered there and what Market Value Definition are you using to support you answer?
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Are Federal Banking Regulations important in this discussion as it pertains to the Bottom of Page two of the URAR?
