Bad advice from Fannie--"Multiple Parcels" from Dec. 2019 'Appraiser Update'

[Lee Lansford]

I agree that it is "integral" but not always identical. The four tests of HBU do not encompass every consideration for the typical market participant. I have provided a clear real world example of this too.

One more try: Do you understand that an opinion of Market Value MUST...must...incorporate the H&BU of the property that is the subject of the appraisal?

 

[George Hatch]

What happens when Andrei concludes for $440k and I conclude to $540k? Which one of us is in trouble?

 

[Lee Lansford]

What happens when Andrei concludes for $440k and I conclude to $540k? Which one of us is in trouble?

Who would be in trouble?

The one who did not understand how to apply appraisal principles to an opinion of Market Value, That would be the one who would be in trouble.

BTW, I'm still waiting for JGrant to understand that H&BU is integral to an opinion of MV and that the two cannot be separated. Waiting...

 

[Andrei Fin]

Do you understand that an opinion of Market Value MUST...must...incorporate the H&BU of the property that is the subject of the appraisal?

Source?

 

[Michigan CG]

Today's inspection. House on 100 acres. If the owner decides to sell it as one unit is that the Highest and Best Use? Would that be the Market Value of the property?

 

[George Hatch]

Source?

What do you think well informed AND acting in their own best interests means? Especially when the value opinion is to be expressed in terms of cash or terms similar to cash?

It doesn't mean the property is being valued in terms of the combination of cash + donuts + bonus points from the Almighty.

 

[Andrei Fin]

What do you think well informed AND acting in their own best interests means?

Best interest is not necessarily defined as financial interest (or in the present tense). Just because payment is made in dollars does not make it so.

 

[George Hatch]

Your point that "motivations" are not always limited to financial is a given. A "view" isn't financial, either, but that doesn't stop us from putting a number on it.

We have to draw the line somewhere on "payment". How else would we otherwise be able to compare transactions to each other?

 

[Andrei Fin]

What happens when Andrei concludes for $440k and I conclude to $540k? Which one of us is in trouble?

You'd be in trouble if they got a better rate due to LTV or decide to cash out, property foreclosed and the bank can't sell it for $540k, because nobody wants to buy the house next door to the construction zone and the bank has to sit on it for a year or fire sale.

 

[glenn walker]

Thread should be closed--Lets talk Impeach or not-to Impeach : ) LMAO