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Market Value?

What impact does the client have on a market value appraisal?

  • None

    Votes: 10 71.4%
  • Some

    Votes: 4 28.6%

  • Total voters
    14
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Eli

Elite Member
Joined
May 12, 2007
Professional Status
Certified General Appraiser
State
Tennessee
market value question. Be free to include whatever like fee or whatever.

Comments are welcome. Lol
 

Phil McDonald

Junior Member
Joined
Feb 27, 2003
Professional Status
Certified General Appraiser
State
Colorado
I am thinking this is a trick question with a punchline. Of course, the client has no impact on market value. What am I missing?
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
I am thinking this is a trick question with a punchline. Of course, the client has no impact on market value. What am I missing?
Just go back and read through the OP's prior posts and the prior polls that he has posted and you will see that you are missing exactly nothing.
 
Last edited:

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
Client will likely impact value if they are a bank and the owner of the property (REO).
However, this is a bad poll...doesn't give a "maybe" option.
 

Eli

Elite Member
Joined
May 12, 2007
Professional Status
Certified General Appraiser
State
Tennessee
Client will likely impact value if they are a bank and the owner of the property (REO).
However, this is a bad poll...doesn't give a "maybe" option.

At least someone is intelligent.:)
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Kind of a vague question...

A property has a market value out in the market no matter who our client is. The buyer cares about the price relative to other similar properties and will pay accordingly
 

Phil McDonald

Junior Member
Joined
Feb 27, 2003
Professional Status
Certified General Appraiser
State
Colorado
Client will likely impact value if they are a bank and the owner of the property (REO).
However, this is a bad poll...doesn't give a "maybe" option.

The bank being the client of an REO would not have an impact on the market value of a property? The definition of value used will determine if the client has an impact. If the definition is “Market Value” then the client will not impact the value. If the client is a bank with an REO they may request “Liquidation Value” and that will be different than market value. However, the client still does not have an impact on value when the definition is “Liquidation Value”. The client may have an impact on value if the definition is “Investment Value”, but not on “Market Value” or “Liquidation Value”.
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
The bank being the client of an REO would not have an impact on the market value of a property? The definition of value used will determine if the client has an impact. If the definition is “Market Value” then the client will not impact the value. If the client is a bank with an REO they may request “Liquidation Value” and that will be different than market value. However, the client still does not have an impact on value when the definition is “Liquidation Value”. The client may have an impact on value if the definition is “Investment Value”, but not on “Market Value” or “Liquidation Value”.
Yes, good point! I meant that the client can affect the value of the home, not market value, as defined. It's nice to see someone here that understands the variances. Market value will always be the same, as the conditions of sale are set. Far too often, appraisers are asked for "Market Value" by lenders on REOs when they actually want Liquidation Value to set the listing price of the property as a REO sale. But to more accurately answer OP's question, the client can affect the value of the home....meaning that the ownership of the home could be out of the conditions of sale as defined.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
I'll take a different tactic.

If the client is a lender, and,
the property is residential in nature, and,
the appraisal assignment is for lending, and,
any part of the subject is found to be in C6 condition, then,
the GSE requirement is to appraise the market value, subject to it being repaired,
Hence the market value no longer is, as-is,
but rather is subject to a hypothetical condition, that the property was repaired, which,
which might result in a different number, if,
the property was being appraised for condemnation purposes, or,
for estate purposes, or,
for tax purposes, or,
for divorce purposes, or,
for purchase by a cash buyer, or,
for feasibility of assemblage, or
any other multiple reasons to appraise a property.

But the issue is not if the "client" has an impact on the value, but rather,
The assignment conditions have an impact on market value, and,
Those assignment conditions vary with the purpose and intended use of the report.

.
 
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