Final Reconciliation

[AnonApprsr]

Active listings are properties in the process of being sold, I would think they would be considered in the Sales Comparison Approach.

 

[DMZwerg]

Active listings are properties in the process of being sold, I would think they would be considered in the Sales Comparison Approach.

So you would think, but if an appraiser is using an Additional Listing page, or better example, an REO addendum,. then the focus of the SCA could well be away from active listings and the actives theoretically analyzed separately. Not saying it SHOULD be done, but it theoretically COULD be.

 

[AnonApprsr]

But...but... there's 3 approaches to value. What approach are you analyzing them in?

 

[Michigan CG]

So you would think, but if an appraiser is using an Additional Listing page, or better example, an REO addendum,. then the focus of the SCA could well be away from active listings and the actives theoretically analyzed separately. Not saying it SHOULD be done, but it theoretically COULD be.

You argue to argue.

If you have reconciled an approach to value and have performed no other approach to value you have an opinion of value.

Listings, condition, REO are all part of the SCA to value.

 

[Mike Kennedy]

UW Final Stip: Appraiser to revise report and stipulate exactly what the $110. factor in the Value Opinion represents. Revised report must be received by end of business today. Thank you for your personal, timely and accurate response to this inquiry which will determine your retention on our approved appraiser panel.

 

[RSW]

You argue to argue.

If you have reconciled an approach to value and have performed no other approach to value you have an opinion of value.

Listings, condition, REO are all part of the SCA to value.

I agree, completely!

 

[DMZwerg]

You argue to argue.

If you have reconciled an approach to value and have performed no other approach to value you have an opinion of value.

Listings, condition, REO are all part of the SCA to value.

I stated "I could be wrong" right up front, so even if I am I took a weak stance.

 

[David Mescon]

Hey, how come none of you "rocket scientist" types brought up the fact that reconciled values, either by individual approaches, or the final reconciliation, need not lie within the range of indicated values by such approaches, or, within the range of indicated values of any of the approaches utilized therein? I have, numerous times, in the appraisal of higher valued properties reconciled an approach to a figure outside the range. If via direct sales comparison the comparables to which I give greatest consideration range from $5,273,000 to $5,274,000 - guess what - I'm gonna reconcile to $5,275,000. Let's say, as well, that the income approach was inapplicable, and the cost approach, which was given least consideration, came in at $5,200,000 - I will end up with a final opinion of value for the subject which lies outside the adjusted range of values indicated by any of the approaches utilized. I've had this happen numerous times, both in the appraisal of residential and commercial properties.

 

[Michigan CG]

Hey, how come none of you "rocket scientist" types............

Long time, no see, David. Glad to see that you are OK although it appears your testosterone levels may be a little high.

What you are saying is that your cost approach is X and your SCA is Y but your reconciliation is higher than both.

Most would argue that the adjustments YOU supplied were not adequate considering your value opinion was outside your adjusted range.

You could argue that you final value estimate was based on adjustments you didn't make quantitatively and rather left to the end to consider qualitatively.

In any event it is not common appraisal practice to opine outside of your adjusted values. But we all aren't rocket scientists.

 

[Riick]

...... I will end up with a final opinion of value for the subject which
lies outside the adjusted range of values indicated by any of the approaches utilized. ....

Well...... just because the average residential buyer & seller tend to use
round numbers and seem to like increments of $5,000 in bidding/asking
is no reason for you to go ahead an ape them, just because you're
supposed to be their alter ego for the purposes of the appraisal.