Disposition Value Form

[J Grant]

http://www.appraisalinstitute.org/assets/1/7/guide-note-11.pdf

an interesting relevant article. Res Guy, it may be true some REO prices may , if lower, seem to fit DV value better than MV... in some cases at least. Regardless, we are asked to provide an opinion of market value, even if it turns out to be above eventual sale price. The REO addendum has an alternate market value opinion in a client imposed possibly more limited market exposure, ; if that indicates a lower value opinion than URAR form market value opinion the REO addendum is the place for that.

 

[J Grant]

they thought they were listing it at what value they could sell it (as a REO), however they were listing it at market value of a owner occupied that the appraiser appraised it at.

There is no published /recognized definition of value such as "market value or an owner occupied " , nor is there a definition of value such as "value it could sell as a REO".

There is only market value, disposition value, or liquidation value as the prevalent and recognized and client requested definitions of value, and none of them reference properties as being owner occupied or REO owned.

An owner occupied house could sell for DV or LV if sold under those conditions and it does happen , in BK driven sales or divorce situations or tax arrears or desperate owner sales. or any number of reasons. And an REO can sell for MV and that does happen as well.

 

[residentialguy]

REO sup is flawed. It is directly tied to the 1004 and Market Value.
Flaws are
1. MV is a set of conditions can't be altered, including Market Exposure. The REO sup ask for MV with limited time??? If it is limited time, how can you have market value, which a reasonable time is allowed for exposure in the open market
2. MV means buyer and seller are typically motivated; You don't have that with a REO sale.
3. MV the price represents the normal consideration for the property sold. You don't have that with a REO sale.

I've given you pages of the vast differences of the REO, so please, do not start up with it being the same as a typical traditional (non-distressed) sale.

And since you agree that there can be "client requested definitions of value"...they can request REO VALUE.

Just because a REO could sell at the same price is moot. A gas station could sell at the same price, too. Happenstance happens. Price has nothing to do with it.

 

[J Grant]

If you say so....we will never agree on this !

I have never heard of a client asking, ever, for "REO value"

I've heard of you talking them into it lol.