Bracketing the contract price

[mp2277]

I submitted a USDA report, opined value is bracketed both within unadjusted sale prices and adjusted values. The supported value is higher than the contract price. The underwriter is demanding I bracket the contract price... has anyone ever heard of this?

 

[CGinMN]

I haven't heard of it, doesn't mean it's not a worthy exercise. Is the contract non-arm's length? If not, do you analyze the contract within the reconciliation? They might be wondering why your OMV is higher than the contract, which is understandable.

 

[Tom D]

that' what i've always understood.

 

[shrubberyvaluation]

What do you do if there is a sale between family members under contract way below the market. Would you bracket that contract price? I've never had that asked of me.

 

[Tom D]

that is a reasonable explanation for a non arms length, family transaction. always bracket the sale price in a normal sale.

 

[glenn walker]

I submitted a USDA report, opined value is bracketed both within unadjusted sale prices and adjusted values. The supported value is higher than the contract price. The underwriter is demanding I bracket the contract price... has anyone ever heard of this?

If your value is higher than the Purchase Contract Price and within both your adjusted and unadjusted ranges then it's already bracketed. Tell her that and be done.

 

[Dublin ohio]

I submitted a USDA report, opined value is bracketed both within unadjusted sale prices and adjusted values. The supported value is higher than the contract price. The underwriter is demanding I bracket the contract price... has anyone ever heard of this?

Are they asking to bracket with unadjusted or adjusted.

 

[Sadie]

I would respond that you are estimating market value, not contract price validation. There are a variety of reasons the contract price is not the MVE. But probably acknowledge the MVE is not consistent with the contract price.

 

[glenn walker]

Are they asking to bracket with unadjusted or adjusted.

Read his post -He said opined value is bracketed both within unadjusted sale prices and adjusted values.

 

[mp2277]

I haven't heard of it, doesn't mean it's not a worthy exercise. Is the contract non-arm's length? If not, do you analyze the contract within the reconciliation? They might be wondering why your OMV is higher than the contract, which is understandable.

Arm's length plain vanilla rural appraisal, best comps two comps a month old. No need to turn over rocks here had there been any thing off the beaten path I would have included it in my OP.