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

[Surf Cat]

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

Don't say probable with J in the thread!

 

[J Grant]

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".

Yes, I was being a know-it-all, sorry - wrt your mentor.

The value opinion is not judged by "missing" a purchase price by under 1% !!! Truly, that is not seen anywhere in USPAP or appraisal texts. It is invented by people to intimidate other appraisers ..

An appraiser would not opine 6k below a 680k purchase price without a very good reason. Nobody does it lightly. If that was my appraisal, I would have double-checked my comps and adjustments. But if that was truly the highest credible value, then it is what it is.

Why is it so terrible for a buyer or seller to close the value gap with their own funds? Why does an appraiser have to push ethical boundaries to make their deal work? It is up to the parties to make their deal work. Getting approved for financing wret a value is not a constitutionally guaranteed right -

 

[glenn walker]

There is no need for anyone to ever have to pay $5k out of their pocket to cover a low value. No appraiser is that good and it just irritates everyone involved in the transaction. Those appraisers careers are normally short and they belong in accounting or bookkeeping where their is only one correct and factual summation.

 

[Mark K]

9 of 10 appraisers might go back and "adjust" their adjustments so that it gets bracketed - especially if the original comp price is above the "target". Face it. If the margin of error is 1% - like in the example above - are we that good? (just to trigger UNoWho) No we are not. The data dictates the margin of error not the appraiser. We should not be "killing deals" over minor differences in price vs a calculated MV estimate.

Agree completely. Unfortunately, some appraisers try to claim an unsupported level of precision and they believe everything that's in the MLS as gospel. MLS data is wrong as often as it is right. Maybe not terribly wrong, but its entered into the system by agents that are not disinterested 3rd parties. They have a fiduciary responsibility to the owner; not to appraisers.

It would do wonders for this profession if, in the beginning appraisal education classes, the providers would spend a day or more, whatever is necessary, to educate future appraisers on the concepts of accuracy and precision.

Appraisers report A number, not THE ONLY credible number. So, to answer the question..."Are we that good?" We are only as good as the data we have available to us and ITS NOT THAT GOOD. Some appraisers tend to think that they can opine a value that is more accurate or precise than the data available. No, you can't. You're not that good.

 

[J Grant]

There is no need for anyone to ever have to pay $5k out of their pocket to cover a low value. No appraiser is that good and it just irritates everyone involved in the transaction. Those appraisers careers are normally short and they belong in accounting or bookkeeping where their is only one correct and factual summation.

There we go again, a statement that " no appraiser is that good " - again, where is this slime statement in USPAP ?? Or in any appraisal text? Appraisers as professionals are supposed to be "that good" of course the nonsense about judging it by a salwe price is pathetic but that is where our field has sunk and why the GSE's are moving away from appraisals -

Coming in at a well-supported OMV irritates the participants, isn;t that too bad. Maybe if a buyer does not have 6k to spend or does not want to spend 6k more to close their own deal on a 680k house, they should not be buying it.

It is not a "low" appraisal, it is a well-supported market value opinion. The SC price was higher than the MV opinion, and the appraiser can address that in the comments.

 

[J Grant]

Agree completely. Unfortunately, some appraisers try to claim an unsupported level of precision and they believe everything that's in the MLS as gospel. MLS data is wrong as often as it is right. Maybe not terribly wrong, but its entered into the system by agents that are not disinterested 3rd parties. They have a fiduciary responsibility to the owner; not to appraisers.

It would do wonders for this profession if, in the beginning appraisal education classes, the providers would spend a day or more, whatever is necessary, to educate future appraisers on the concepts of accuracy and precision.

Appraisers report A number, not THE ONLY credible number. So, to answer the question..."Are we that good?" We are only as good as the data we have available to us and ITS NOT THAT GOOD. Some appraisers tend to think that they can opine a value that is more accurate or precise than the data available. No, you can't. You're not that good.

The appraisal does not state the value opinion to be THE ONLY credible number. You understand that, correct?

This is just another slimy falzhdsood to trot out the you're not that good excuse for number hitting.

It is a bunch of word salad about more accurate or precise than the data available. It is just a slimeball exucse for number hitting.

If the appraiser opined 680k or 676k, either one is a precise number, per what you said.

It is a market value opinion, not expected to be an ""only credible number "

 

[J Grant]

WRT the posts saying appraisers are not that good _ the GSE's hear you. A professional appraiser is expected to be "that good" - competent to develop a credible supported MV opinion (which may be below a SC price at times ) or above a SC price at times.

 

[Tom D]

I'm just wondering if the sale price equals the value, or value is higher, does the underwriter care to read anymore than that happy moment.

I do like to be pro active on potential lawsuites and did i leave a door open for the other side. I want a bullet proof appraisal.

Just like observation verses inspection wording changes your liability. I'm changing price point to some other term. See if anything changes. But, like i inferred. I don't think they read that, or would pick it out as odd either way.

 

[Charles West]

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.

Nope, never heard of it except during my production and operations management class in college.

 

[Mark K]

It is a bunch of word salad about more accurate or precise than the data available.

Why am I not surprised that you think that the concepts of accuracy and precision are nothing more than 'word salad'. If you had a clue about the concepts, you'd understand how ignorant your posts sound regarding the issue.

BTW, you said you were going to put me on 'ignore'. You had my hopes up. You libtards just can't be trusted.

If the appraiser opined 680k or 676k, either one is a precise number, per what you said.

If you understood the concepts you'd realize that one is claiming a higher level of precision than the other. One has two significant digits (another strange concept to you, I'm sure) indicating a precision to $10K. The other has three significant digits claiming a level of precision to $1K.

Maybe he can explain it to you.