Comment Caucus

[T-Dubs]

Welcome T-Dubs to AF. The forumites you met are very political and bias so be careful with your political terms. They're intolerant, extreme, belittling, and mean but don't let that bother you.
Some here are glad you gave a good comment on OPINION OF VALUE UNDER CONTRACT PRICE. I don't usually make such a comment unless the value is significantly below contract in which case there is something abnormal happening in the transaction.

Much appreciated, Fernando. Very much appreciated.

 

[T-Dubs]

Edit as necessary. It doesn't matter why the contract price is out of line and there's no point in attempting to speculate as to that reason because at least some of the time that speculation will be incorrect. Stick to what you can see.

Thanks loads, George! Honestly. Awesome advice and a great comment.

P.s. The Steven Santora quote is killer.....I think both will find their way into my reports.

#allhailthesilversurfer

 

[George Hatch]

My advice is to pick and choose whatever inputs make sense to you and ignore the rest.

 

[jay trotta]

Begin with the focus of the comment, then hit us your word wizardry. Exempli gratia:

OPINION OF VALUE UNDER CONTRACT PRICE
"The opinion of value does not support the contract price. The subject property does not have any condition, functional or external issues, unique characteristics or under-improvements. The market conditions have not changed between the contract date and the effective date of this appraisal report. The sale agreement is arms-length and is not known to include any personal property. The contract price is not a direct reflection of market pricing and in some cases may be influenced by the motivation of the buyer, seller and or real or perceived market conditions. In the case of the subject property, the appraiser was able to utilize the most recent and similar sales located in the subject’s immediate market area and same named subdivision which reflected a market price below the contract price."

word salad.......kiss method works better

 

[sputnam]

Canned comments are a problem. Sometimes they work. Sometimes they are contradictory to what is reported elsewhere in the appraisal report. Every property is unique... some are more unique than others.

 

[J Grant]

Unless there is a specific affect on price within the contract itself , such as a seller concession to be commented on, the reality is their contract price is nothing more than what the parties negotiated. ". There is no obligation on buyers and sellers to sign a contract at "market value"!!! They agree on a price and terms that suit them.
Below is a typical comment I can make , broken down into 3 sections, with bold type to show the reasoning:

" The sale contract price is above the appraisal opinion of market value. A sale contract price is a negotiated price between parties and can be affected by either party's individual motivations. No atypical terms were found in the contract. " This comment addresses the contract itself. It basically says, their price is their price and their price is their decision .

"It is typical in this market to see sale prices on the higher side due to lack of inventory and competitive bidding. " This explains market conditions that affected price.

The appraisal opinion of market value was developed using the most similar comps and applying market extracted adjustments. Additional sales and listings and pendings were also considered, as part of the appraisal development. " This sums up the support for my market value opinion and lets the reader know that I considered additional sales. and listings.

The whole statement:

" The sale contract price is above the appraisal opinion of market value. A sale contract price is a negotiated price between parties and can be affected by either party's individual motivations. No atypical terms were found in the contract. It is typical in this market to see sale prices on the higher side due to lack of inventory and competitive bidding.
The appraisal opinion of market value was developed using the most similar comps and applying market extracted adjustments. Additional sales and listings and pendings were aalso considered, as part of the appraisal development."

 

[J Grant]

Begin with the focus of the comment, then hit us your word wizardry. Exempli gratia:

OPINION OF VALUE UNDER CONTRACT PRICE
"The opinion of value does not support the contract price. The subject property does not have any condition, functional or external issues, unique characteristics or under-improvements. The market conditions have not changed between the contract date and the effective date of this appraisal report. The sale agreement is arms-length and is not known to include any personal property. The contract price is not a direct reflection of market pricing and in some cases may be influenced by the motivation of the buyer, seller and or real or perceived market conditions. In the case of the subject property, the appraiser was able to utilize the most recent and similar sales located in the subject’s immediate market area and same named subdivision which reflected a market price below the contract price."

I am not a fan of "The opinion of value does not support the contract price. ". We do not do appraisals to support a contract price. We do appraisals to support a market value opinion. (sorry, had to tell you how I feel about the opening sentence ). Just say instead the sale contract price is higher (or lower if the case ) than the appraisal market value opinion. Not sure why you are then commenting about the subject not having any condition funct or ext issues ? Seems not relevant -.

T

 

[glenn walker]

Welcome T-Dubs to AF. The forumites you met are very political and bias so be careful with your political terms. They're intolerant, extreme, belittling, and mean but don't let that bother you.
Some here are glad you gave a good comment on OPINION OF VALUE UNDER CONTRACT PRICE. I don't usually make such a comment unless the value is significantly below contract in which case there is something abnormal happening in the transaction.

Nando the AF Hall Monitor says Welcome T-Dubs to AF. The forumites you met are very political and bias so be careful with your political terms.

 

[T-Dubs]

word salad.......kiss method works better

The Keep It Simple, Shithead method, correct? I agree.

 

[George Hatch]

Be direct. And stick to what you can show. Adding speculation only opens the door for an argument or rebuttal. Your critics will always look for the opportunity to claim you relied on subjectivity and opinion and then proceed to challenge your integrity. You can deny them that opportunity by sticking to the facts, because they can't mischaracterize those as being subjective.

You always gots to stay one step ahead of the opposition. You must crush all hopes for a rebuttal in your initial report; cut them off before they can even get started. One way to do that is to make clear that your analysis was never limited to just the 5 or 6 sales in your SC but includes your identification and consideration of everything you looked at during the entire course of your research before you narrowed it down to the "most comparable" that you used in your report. You must not indulge them in the fantasy that if only they can show you another sale at the higher price that it will change your opinions. No one sale makes or breaks.

I usually include an estimate of the actual number of sales I researched and analyzed during the course of my assignment. That number is always several multiples of the number of comps I present in my report.