Is the term 'price point' value a dangerous term.

[Dublin ohio]

The term "price point value" is self contradictory. Unless you believe that "price equals......................". Sorry, I just can't say it.

 

[Charles West]

Tell that to USPAP lol

I've never heard of it being used in an appraisal. It's like referring to the perfect marginal tax rate that produces maximum revenue and growth.

 

[Surf Cat]

I think there's a misconception about the term 'good enough'. I don't think anyone would argue that an appraiser's analysis is not precise enough to reconcile a point value. I don't, however, think the reason is that we're not good enough (well, some of us anyways). Its the data that's not good enough.

I like this point of view. The chief appraiser at the fee shop I used to work for (prior to the hvcc decimating fee shops) had all these quips...."all your comps can't su*k for the same reason" "you're not that good" and several other zingers. No, he wasn't sleazy as Miss Know it All claims. He'd get really pis*ed off about expanding the parameters of time and distance to the 1 mile, 6-month club which falls in line with your data comment.

 

[J Grant]

If you killed a deal over a value that lies well within the margin of error, then you committed a criminal act in my book because you really are not that good. The problem is being too stupid to understand when your "accuracy" is impossible to be truly precise enough to be true. And I see appraisers make such stupid assessments with some regularity.

This does not mean your judgment does not count and there may be circumstances that make you stick to the original value. But adjustments are rarely dead to nuts. This is not a machining issue. Is the outbuilding worth $8,000? or $12,000? Is the pool really worth $20,000? or $60,000? And if the pair sales vary by 50% or more, then you really could run a Monte Carlo Simulation and explore the "most probable" number mathematically and come up with a far different number. But then again you have no idea with a MCS is.

A criminal act?
Your "book" is sleazy and compromised then.
Where in USPAP, or in any appraisal text, do they talk about coming in below a SC price as a margin of error and where in any appraisal text does it reference "you are not that good?"
A sale price is not a benchmark value with a margin of error. You are just looking for a rationalization to excuse your number hitting.

 

[J Grant]

I've never heard of it being used in an appraisal. It's like referring to the perfect marginal tax rate that produces maximum revenue and growth.

You have never heard of a point value used in an appraisal?


That is how the vast majority of properties for lending purposes are appraised—( the client wants a point value ) and for many other purposes as well.

 

[J Grant]

I like this point of view. The chief appraiser at the fee shop I used to work for (prior to the hvcc decimating fee shops) had all these quips...."all your comps can't su*k for the same reason" "you're not that good" and several other zingers. No, he wasn't sleazy as Miss Know it All claims. He'd get really pis*ed off about expanding the parameters of time and distance to the 1 mile, 6-month club which falls in line with your data comment.

I am not a know-it-all; I am quoting USPAP and the standards of the profession.
If your mentor had quips, like you are not that good and if you miss , miss big- - and he taught to number hit in order not to kill a deal, then he was sleazy in his professional approach - even though he might have been a nice guy or fun to hang out with.

 

[glenn walker]

I've never heard of it being used in an appraisal. It's like referring to the perfect marginal tax rate that produces maximum revenue and growth.

The probable point of value after analyzing the adjusted range of value is $500,000 .....lol

 

[Surf Cat]

PS - market value is not an estimate. !! Appraisers provide a market value opinion.

Yes it is.....a professional opinion. It's ultimately an estimate within the framework of professional appraisal standards.

 

[Surf Cat]

I am not a know-it-all; I am quoting USPAP and the standards of the profession.
If your mentor had quips, like you are not that good and if you miss , miss big- - and he taught to number hit in order not to kill a deal, then he was sleazy in his professional approach - even though he might have been a nice guy or fun to hang out with.

You don't know this! You're being a know-it-all right now!

You conveniently discarded the other checks in regards to missing the purchase by under 1% (days on market, are there backup offers, history of median sales price as a percentage of list price) along with other factors that Terrel mentioned.

But you go ahead and kill the deals because you're "that good".

 

[J Grant]

Yes it is.....a professional opinion. It's ultimately an estimate within the framework of professional appraisal standards.

You are correct in the first part ( value for an appraiser is a professional opinion )

But then why say that it's ultimately an estimate? It stays an opinion - as you note, done with the framework of professional appraisal standards.