Incomplete purchase contract provided

[J Grant]

Right..if there was support for a MV change, such as, new comps that sold, pendings, etc, it might be a support for a change of value. Otherwise, perhaps not...that is why the original value hopefully was based on some indicator besides the contract itself .

 

[residentialguy]

A $725,000. market-indicated Opinion of Value communicated to the Client is suddenly worth $740,000. a week after the OMV is established, supported, and communicated to the Client and the assignment is completed.

Yes, if data that was used has changed, then it stands to reason that your opinion will change if the data had anything to do with your opinion.



You take into consideration what the parties have decided the house is worth, but you don't lean all that heavily on it (imo).

I already stated that the market value was taken from the comps and created a range. Now it stands to reason that the market participants are a good indication of value.

BTW 5% is greater than your accuracy, I can guarantee it...not to mention that there is probably 5% variance with the market by itself; you take the same house and a bunch of paired matches, you will most likely see at least a 5% variance.

 

[J Grant]

You made a good point in your last post, Res Guy! Each contract and house and price and set of comps are different...

 

[residentialguy]

Unfortunately, as true as my post is, trying to defend it may get similar results you would have at proving that you're not a witch during the dark ages.

 

[Rlong]

Have em order a new report based on the "new contract data". Then come in at $725,000 again! Yup now I'm sure!

Bob in CO

 

[Mike Kennedy]

If you had a reasonable range of probable value from say $715-760k

then slow, careful revisiting the SCA adjustment grid is in order to identify incorrect or missing adjustments to the comparables.

and you came in at a point value of $725 because the subject contract fit the conditions of market value, therefore you placed final point value with that weight, then had you known the contract had been $740k, you would have set the point at $740k :Eyecrazy: because it's well within a reasonable range of most probable value.

 

[residentialguy]

Mike,

Don't even try to pretend that if you were doing an appraisal and the subject had strong support of a $715-$760k probable range and the contract was $740k that you would come in lower than $740k.

If so, you should go seek professional help about your denial or your god complex, one of the two.

 

[J Grant]

I know I'm not Mike but, am responding because the below comes up too often:

Don't even try to pretend that if you were doing an appraisal and the subject had strong support of a $715-$760k probable range and the contract was $740k that you would come in lower than $740k.

What does strong support of a 715-760k range mean? If that is the range, so be it. It's a fairly broad range, so now the question is, where is the strong support of the point value within that range? (support outside of the contract itself)

Clearly, some of the comps were more like the subject than others, and some were adjusted more than others, and the market is either stable, declining, or rising. So these factors have to support the point value, not just the sales contract itself.

For example, your SC price is 740k, the mid/higher range of value. If market is stable/rising and your subject is one of the larger/upgraded/better view homes, more similar to the 740-760k comps and less similar to the 715k-730k comps, then that is support beyond the SC price to bring it in at 740k.

But if the subject is a mediocre home, more like the 715k-730k comps, and the superior comps had downward adjustments, and a similar home is listed at 735k, where is the support for a point value of 740k, other than the contract price ?
Appraiser develops a broad ranges of value and then justifies a point value that matches the SC price...because the SC price falls (somewhere, throw a dart ) within a broad range.

Does this (reconciling to a contract because the SC price falls within a range) appear in any texts or coursework ? ...did I miss the class on it ? Is there a link or quote about it in a text or advisory opinion ...or is it a technique that mentors or appraisers passed along to each other?

 

[Stone]

And the answer is "26". :new_smile-l:

 

[residentialguy]

I know I'm not Mike but, am responding because the below comes up too often:

Don't even try to pretend that if you were doing an appraisal and the subject had strong support of a $715-$760k probable range and the contract was $740k that you would come in lower than $740k.

What does strong support of a 715-760k range mean? If that is the range, so be it. It's a fairly broad range, so now the question is, where is the strong support of the point value within that range? (support outside of the contract itself)

Clearly, some of the comps were more like the subject than others, and some were adjusted more than others, and the market is either stable, declining, or rising. So these factors have to support the point value, not just the sales contract itself.

For example, your SC price is 740k, the mid/higher range of value. If market is stable/rising and your subject is one of the larger/upgraded/better view homes, more similar to the 740-760k comps and less similar to the 715k-730k comps, then that is support beyond the SC price to bring it in at 740k.

But if the subject is a mediocre home, more like the 715k-730k comps, and the superior comps had downward adjustments, and a similar home is listed at 735k, where is the support for a point value of 740k, other than the contract price ?
Appraiser develops a broad ranges of value and then justifies a point value that matches the SC price...because the SC price falls (somewhere, throw a dart ) within a broad range.

Does this (reconciling to a contract because the SC price falls within a range) appear in any texts or coursework ? ...did I miss the class on it ? Is there a link or quote about it in a text or advisory opinion ...or is it a technique that mentors or appraisers passed along to each other?

JG, 5% is not a broad range. You will see that with paired matches. (I don't mean the kind you light)...and you aren't adjusting any closer (I know you think you are when you tweak the numbers to shrink the range).


Don't worry, though...the doctor will see you, too.