Market Value vs Liquidation Value

[J Grant]

Read your post #51
Read your response to post #51 I stated I would list it and try to market it for highest price I could get seller. You said if I had time to market it then it was not a liquidation sale. So just sell it for 10 cents on a dollar because I have two days to unload it. That's not how it works the seller determines the marketing time and lowers expectations as time accumulates and I as the broker with sellers approvel A.D. just price until we find a buyer.

Read what the LV definition actually says - client can set the time period but for liquidation value, the shortened time is for as CONSUMATION (closing ) of sale, (not just shorter DOM)

If you had a seller that told you they need to CLOSE within 30 days, it would be a different instruction than a seller telling you they want an offer within 30 days listed on the market.

 

[Sadie]

I know you asked GH, but imo yes LV can be better represented by foreclosure auctions or similar auctions such as tax lien - because LV is not just about a shortened DOM, it is also about a very limited marketing effort - and a foreclosure or other auction might only get an announcement in a legal section of a paper or a notice in a court listing of properties.

Disposition value is closer to a modified /limited marketing effort but still might use traditional advertising /ways of making the property known to potential buyers.

Liquidation sales can be marketed, the whole point of them is that they have to be closed and done by a certain date. Not a pending sale by a certain date, but closed and title transferred by a certain date. Different scenario from a typical distressed sale in MLS. Edited: We are saying the same thing

 

[J Grant]

Liquidation sales can be marketed, the whole point of them is that they have to be closed and done by a certain date. Not a pending sale by a certain date, but closed and title transferred by a certain date. Different scenario from a typical distressed sale in MLS. Edited: We are saying the same thing

IDk why some seem to not understand the difference - or choose not to.

 

[Sadie]

IDk why some seem to not understand the difference - or choose not to.

I think people get stuck in the MVE rut and forget there are other values that can be estimated. Maybe go back to the very first appraisal classes taken when the different values are discussed. Just because the appraisal is for a GSE doesn't necessarily mean the value estimate requested is Market Value. Tunnel vision.

 

[glenn walker]

I think people get stuck in the MVE rut and forget there are other values that can be estimated. Maybe go back to the very first appraisal classes taken when the different values are discussed. Just because the appraisal is for a GSE doesn't necessarily mean the value estimate requested is Market Value. Tunnel vision.

I get your point but please cite one instance of a GSE or FRT Appraisal that is not based on a "Market Value" with a few limited exceptions. In 37 years I can't think of even one.

 

[ZZGAMAZZ]

This is helpful. So if the client is looking for a 30 day liquidation value, look for 3+ similar sales WITHIN 30 DAYS and then make adjustments accordingly....correct?

I'm no expert, but IMO this strategy might be faulty because the critical metrics are "exposure" and "contract date," which might not be accurately reflected simply by relying upon the most recent recording dates. (Maybe?)