No, it's not. Appraising to the contract would ignore the market support and cherry pick comps to support the contract. I'm talking when the market supports a range and the house falls within that range, you then lean on the what the market participants have decided on what that exact house is worth.
You take into consideration what the parties have decided the house is worth, but you don't lean all that heavily on it (imo). Because the buyer thinks it's worth 730k, for example, as long as they can borrow 650k of that.
It is our client's money at stake, not the borrower's. Therefore, it is not all about what the parties think it is worth, it is about what WE think it's worth, in MV terms, for our client to rely on.
The contract matters, but other factors matter as well....a case by case basis on each report.
With a wide spread of adjusted values, there is less crediblity behind the fact that the SC price falls within a range, so heck, might as well opine exactly what the SC is. (and we always have to consider the unadjusted prices)
A contact price of 720k, within an adjusted range of 700k -735k, is a tight range of support. But a sales price of 720k in a range of 680k to 740 k, that's so broad it's meaningless as to why specifically 720k is the value.
If I were doing a refi and comp one was an identical match and fell within a reasonable range of the other comps, I would probable land on that sale price. And if the comp was a different price, my point would be different because my data is now different. Same with the subject. (and 5.9% range is not a large range)
If it were that simple, yes, but you are comparing the subject to itself, and it is not a closed sale. It's a pending, and you would never base 100% of your point value on a pending sale.
It's a shame that we have appraisers with your frame of mind because OP would probably be better off holding to his value....not because the change of data wouldn't make a difference, but because of the hassle of dealing with reviewers that have your frame of mind....that can't grasp the fact that the subject participants mean something.[/quote]
I grasp that the subject participants mean something, and the contract means something, and needs consideration, and perhaps even strong consideration. But there has to be value indicators and specifc support among the comps and market conditions for a point value besides the contract itself, even when the price falls within a range.
Is your subject one of the nicest, most upgraded homes, or the one with a great view? Then it should be closest to the best feature, highest price comp, and support opining the high range of value.
But if the subject is ordinary, or inferior, and closer in value to mid or lower priced comps, then where is the support for the high value, apart from the contract itself? .
