MV opinion vs a price estimate

[sputnam]

Read the definitions in USPAP. An appraisal is an opinion of value.... not price. It is often an opinion of 'market value' but, it could be of other types of value.

 

[JeffSH]

But an OPINION of Market value Is NOT an opinion of price. It remains, an opinion of value.

It's both in my reality. I've never seen a definition of value that didn't correlate to a price: most probable price, price with a constrained marketing time, etc.

An appraisal is an opinion of value. Value is a price. An appraisal is an opinion of price.

 

[J Grant]

It's both in my reality. I've never seen a definition of value that didn't correlate to a price: most probable price, price with a constrained marketing time, etc.

An appraisal is an opinion of value. Value is a price. An appraisal is an opinion of price.

Refer to what Sputman wrote in post 131, so it is not just "me"

And please cite/ or locate in USPAP definitions or any recognized appraisal source definitions that " an appraisal is an opinion of price "

 

[J Grant]

It's both in my reality. I've never seen a definition of value that didn't correlate to a price: most probable price, price with a constrained marketing time, etc.

An appraisal is an opinion of value. Value is a price. An appraisal is an opinion of price.

A definition of value IS NOT an opinion of value !!!!!!!

Yes a definition of value correlates to a price, but we must acknowledge that the definition of value/or definition of market value and an opinion of market value are not one and the same thing.

 

[JeffSH]

we must acknowledge that the definition of value/or definition of market value and an opinion of market value are not one and the same thing.

??????? Per the specific assignment, SOW, etc, the definition of value is the answer to the problem. My final opinion is "the most probable price...." based on my interpretation of the data.

 

[J Grant]

??????? Per the specific assignment, SOW, etc, the definition of value is the answer to the problem. My final opinion is "the most probable price...." based on my interpretation of the data.

If you submit a MV purpose appraisal stating " My final opinion is the most probable price" instead of "My opinion of market value is " , the appraisal would be turned in to the state...

Developing the appraisal is the answer to the problem. The definition of value ( as defined ) is a defined set of conditions and terms of the most probable price

 

[JeffSH]

This is such a ridiculous distinction. You define the parameters, SOW, and value so they don't have to be restated every time. The definition of value is a price. You are determining a price. This isn't stated because it's so obvious that even our clients understand.

 

[Dublin ohio]

FWIW. Somewhere, years ago. I read something like: Only the courts and the parties in a transaction determine price. Appraisers provide a value. Or something like that.

 

[J Grant]

This is such a ridiculous distinction. You define the parameters, SOW, and value so they don't have to be restated every time. The definition of value is a price. You are determining a price. This isn't stated because it's so obvious that even our clients understand.

USPAP ,, not me personally. And the URAR ( since most res appraisals use the forms ) states top of page one, the purpose of appraisal is an opinion of market value. We ARE NOT determining a price. If you want to not give an opinon of market value, but give an opinion of price, THEN STATE IT . Nut you don't state it, because you know it would make the appaisal void and not usable for GSE purpose. If we sign we did one thing, but instead did another thing, we are being misleading.

you- This isn't stated because it's so obvious that even our clients understand.

An appraisal's consists of what is stated, and its credibility lies with that the appraiser did what they stated they did. We don't state one thing ( we developed a market value opinion ) but then silently do a different thing ( gave a price opinion).

The fact that our client is interested in the price and may not care about the value , is beside the point. The fact that the definition of value is a price is besides the point.

 

[JeffSH]

USPAP ,, not me personally. And the URAR ( since most res appraisals use the forms ) states top of page one, the purpose of appraisal is an opinion of market value. We ARE NOT determining a price. If you want to not give an opinon of market value, but give an opinion of price, THEN STATE IT

It's already stated in the definition of market value. "most probable price..." You think it's some gotcha, but there is absolutely nothing wrong with saying something like, "based on the data and the value definition, the most probable price of the subject is $" I wouldn't do it. But it's not wrong.