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Changing A Market Value Definition

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J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
The definition used in appraisal report for type of value ( as defined) is this:

"DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market..till end)

It is not this:

"DEFINITION OF MOST PROBABLE PRICE: The market value which a property should bring in a competitive and open market..till end)

We see appraisers say: " using this definition of value, market value = the most probable price also means that the most probable price = market value."

The URAR form prohibits the appraiser from changing printed terms and definitions. If appraisers flip the word order to the most probable price = market value.", they have modified the definition.
Is modifying the definition
USPAP complaint?
 
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J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
A) USPAP :#92 MARKET VALUE: a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal

B) DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market ...(till end of definition).


Keep in mind the B definition of value ( as defined) sets forth the specific conditions used in the opinion. B serves A, the B definition for type of value is not a swap out interchangeable with the A) USPAP definition of market value stated as an opinion.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Apple = Fruit
Ergo:
Fruit = Apple

Yes to the above as its own example. However the issue of MV definition application in a report is not a this =that .It is this: the MV definition, acts as a qualifier of that.:the MV opinion

The MV definition is a specific word order with commensurate meaning. Reversing the order changes the MV definition from a set of conditions for a value opinion. ( and modification to definitions are not allowed on the URAR form)

The MV definition does not state an Apple=Fruit.
It sets forth conditions for a type of value ( a type of fruit) used in the market value opinion of the (apple).

A) USPAP :#92 MARKET VALUE: a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal
 
Last edited:

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
URAR limiting conditions page : Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted.

DEFINITION OF MARKET VALUE: The most probable price 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, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the

for the report type of value ; The definition of market value word order is important, because it is linked by AS DEFINED to the MV opinion. Thus, changing the word order, ( along the logic of this = that, so = this, changes the meaning ( and is prohibited on a URAR ) I will show what it would look like on below post to keep each post cleaner.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting conditions, and appraiser’s certification, my (our) opinion of the market value, as defined, of the real property that is the subject of this report is $ , as of effective date

DEFINITION OF MARKET VALUE: The most probable price 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, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the

Switching the word order per market value=most probable price, so most probable price=MV result:

Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting conditions, and appraiser’s certification, my (our) opinion of the market value, as defined, of the real property that is the subject of this report is $ , as of effective date

DEFINITION OF THE MOST PROBABLE PRICE: The market value 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, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
Apple = Fruit

Ergo:

Fruit = Apple

An Axiom is a mathematical statement that is assumed to be true. There are five basic axioms of algebra. The axioms are the reflexive axiom, symmetric axiom, transitive axiom, additive axiom and multiplicative axiom. Reflexive Axiom: A number is equal to itelf.

a=b ---> b=a
 
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