How Precise Do You Need To Be?

[residentialguy]

Yeah, too bad appraisal is not target practice. While a central tendency of middle might make sense for scatter graphs, if your subject is superior among the comps, or market is rising, wouldn't the MVO and most probable price be at the upper $ amount?

That is an example of the same house sold on the same day with the same financing with different buyers and sellers.

 

[J Grant]

yes...you're talking about a specific set of buyer and seller. We aren't opining them...we are opining the whole market. Look at the shot gun patterns. That is the typical buyer/seller market. There is no one point that is most probable...there is a range of most probable points.

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,
The market value definition linked to the MV opinion is based on the most probable actions leading to most probable price of the buyer and seller, singular- a model buyer and seller for the presumed sale transaction in the appraisal. Where does it say in the appraisal that our MV r opinion represents the entire market ?

 

[J Grant]

QUOTE="residentialguy, post: 2805229, member: 123200"]That is an example of the same house sold on the same day with the same financing with different buyers and sellers.[/QUOTE]

I get it. ( I sold RE)

Out in the market any number of price numbers can occur with different buyers and sellers on the same house on the same day. That is why client hires an appraiser, for OUR opinion of market value as the most probable price per the development in the appraisal - they did not hire us for a guess among any number of possible prices out in the market

 

[residentialguy]

Out in the market any number of price numbers can occur with different bueyrs and sellers on teh same house on the same day. That is why client hires an appraiser, for OUR opinion of market value as the most probable price per the development of appraisal - they did not hire us for a guess of the many possible prices out in the market

So, you opine that 500k is "the MOST probable price". Do you have the market support for that one price being the most probable? Or is there market support that shows other prices close to that which are just as probable?

 

[TRESinc]

So, you opine that 500k is "the MOST probable price". Do you have the market support for that one price being the most probable? Or is there market support that shows other prices close to that which are just as probable?

details, shmetails... i am the appraiser and i say so, so be it.

 

[J Grant]

So, you opine that 500k is "the MOST probable price". Do you have the market support for that one price being the most probable? Or is there market support that shows other prices close to that which are just as probable?

It is MY/OUR opinion... (from my best supported research and appraisal development ) for a 500k most probable price Market value opinion.

Which is why it is expressed as MY/OUR opinion of market value and not THE opinion of market value., or THE ONE omnipotent opinion.

You don't grasp that most fundamental appraisal concept?

 

[glenn walker]

Stepping on the gas finally hit the wall at $1,379,600- This was the appraisers reconciliation ** The sales price of $1,379,600 falls within the range of value hence the sales price is considered market value and that's how I arrived at the $1,379,600 value. Reviewer: why not $1,379,000 or $1,380,000- Simple if I went $1379,000 the buyer would have to come up with $600.00 bucks and the agents would be screaming at me and if I went $1,380,000 the seller would b upset because he left $600.00 on the table.

 

[residentialguy]

You don't grasp that most fundamental appraisal concept?

Obviously you don't grasp the fundamental appraisal concept of the market supporting your opinion. The market does not support your opinion of that one point being the most probable.

 

[J Grant]

Obviously you don't grasp the fundamental appraisal concept of the market supporting your opinion. The market does not support your opinion of that one point being the most probable.

My APPRAISAL is supposed to credibly to support my opinion. Why in the world would I, or you, expect the entire market to agree this one point is the most probable ?

BTW, there is a reason the most probable is an integrated verbiage within the MV definition and linked to the MV opinion- it makes sense within the context of the appraisal that way. You are lifting it out of its integration within the definition and link to the opinion as a stand alone metric of "most probable" .

 

[residentialguy]

The typical buyer and seller are those in the market and they are not supported to have a single point. The term "most probable" was inserted in there as an attempt to keep appraisers from using the highest sale out there as the market value.