Help With Standards Rule 1-5

[Deleted member 130081]

Hello everyone.

I am struggling with Standards Rule 1-5 that states:

“STANDARDS RULE 1-5

When the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business:

(a) analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal; and

(b) analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal.”

I am wondering, how is the current agreement of sale to be used in the development of the market value opinion?

Thanks in advance to all who chime in.

 

[Dublin ohio]

Hello everyone.

I am struggling with Standards Rule 1-5 that states:

“STANDARDS RULE 1-5

When the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business:

(a) analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal; and

(b) analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal.”

I am wondering, how is the current agreement of sale to be used in the development of the market value opinion?

Thanks in advance to all who chime in.

 

[Meandering]

I am wondering, how is the current agreement of sale to be used in the development of the market value opinion?

Thanks in advance to all who chime in.

Oh, I think some one already answered this for you.

Yup, I found it.

(a) analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal;

 

[timd354]

Hello everyone.

I am struggling with Standards Rule 1-5 that states:

“STANDARDS RULE 1-5

When the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business:

(a) analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal; and

(b) analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal.”

I am wondering, how is the current agreement of sale to be used in the development of the market value opinion?

Thanks in advance to all who chime in.

This ought to be good if anyone takes the bait and actually tries to have a serious conversation with you about this topic after what you posted in this thread:
https://appraisersforum.com/forums/...e-and-imo-it-should-be-changed.220368/page-40

 

[Howard Klahr]

It doesnt state that it is to be used in the development of market value. So what is the issue?

 

[timd354]

It doesnt state that it is to be used in the development of market value. So what is the issue?

The issue is that OP does not like USPAP standards rule 1-5 which apparently causes her to misrepresent to the public regarding the actual requirements of USPAP standard 1-5 and how appraisers analyze the contract as she, herself described in post 380 of the following thread: https://appraisersforum.com/forums/...e-and-imo-it-should-be-changed.220368/page-38

 

[residentialguy]

Looks like someone's trying to recover from the last thread they started.

FC, just because your can't understand something, it doesn't mean it's wrong.



.

 

[jay trotta]

Mike K; (Noted)
USPAP 2-2(viii) lines 661-665 with clarifying emphasis on 664-665.

"when reporting an opinion of market value, a summary of the results of analyzing the subject sales, agreement of sales , options, and listings in accordance with Standards Rule 1-5 is required.

If such information is unobtainable, a statement on the efforts taken by the appraiser to obtain the information is required.

If such information is irrelevant, a statement acknowledging the existence of this information and citing its lack of relevance is required."
______________________________________________________________________________________________________________________________________________________________

AS market value is derived from OTHER, competitive property/market sales sold and purchased by OTHER sellers and buyers:

Clearly, the contract info is an underwriting/financing concern - NOT relevant to developing and reporting an INDEPENDENT, AND OBJECTIVE opinion of competitive market value.

IT is NOT necessary for the development of an OBJECTIVE Opinion of Market value, to whit: HELOCS, REFI appraisal assignments.

Who a lender is, who a current owner or potential buyer is, and whether or not a contract exists is Irrelevant.

What is relevant and necessary information is confirmed info on the most recent, similar, and directly competitive OTHER properties reflecting the actions of OTHER typical local buyers of those other properties which indicate Market Value for a subject property based on the Principle of Substitution.

(ref; post#4) output / input

 

[Mark K]

I am wondering, how is the current agreement of sale to be used in the development of the market value opinion?

Thanks in advance to all who chime in.

You've been appraising for HOW long and you're just lately trying to come to terms with and understand this concept?

Its very simple. Its data that you can use or not use, just like any other data.

Some appraisers should stop trying to make more than that out of it.

That's my $0.02.

 

[Carnivore]

You've been appraising for HOW long and you're just lately trying to come to terms with and understand this concept?

Its very simple. Its data that you can use or not use, just like any other data.

Some appraisers should stop trying to make more than that out of it.

That's my $0.02.

Agree!!!!!!!!!!

The Appraiser either get's it or don't. If you don't then avoid any assignment that has a contract component as part of the development.