MV opinion vs a price estimate

[residentialguy]

The answer is yes... But it's probably not a very credible appraisal.

 

[J Grant]

So If Joe the plumber says that your house is worth $500k.. is that an appraisal?

No-if he just says it. If he just says it, it is his opinion

But if he takes the steps and does an appraisal with a work file, and the appraisal produces an opinion of value, then he did an appraisal.

Of course most clients would reject it and doubtful anyone would pay him for it...

 

[residentialguy]

You're going back to USPAP. The general definition of an appraisal is an opinion of value.

 

[J Grant]

So If Joe the plumber says that your house is worth $500k.. is that an appraisal?

If Joe the plumber just says your house is worth 500k, it is not an appraisal

If Joe produces an appraisal and his apprisal produces an opinion of value, he did an appraisal ( but it would be rejected by most clients and not eligible for GSE use )

However, if Joe the plumber ALSO has an appraisal license, and he says your house is worth 550,k , he gave a verbal appraisal ( and better run home and produce a work file for it )

 

[residentialguy]

Then if you told me the same way that my house was worth $500k... than that is not an appraisal.

 

[J Grant]

You're going back to USPAP. The general definition of an appraisal is an opinion of value.

Both USPAP and the general definition of an appraisal is an opinion of value.

 

[residentialguy]

Both USPAP and the general definition of an appraisal is an opinion of value.

The plumber gave you his opinion of value, therefore by your own words, that was an appraisal.

 

[J Grant]

Then if you told me the same way that my house was worth $500000... than that is not an appraisal.

If I told you that as an appraiser it is... (far as I know, because when appraiser gives a value it is their opinion, and an opinion of value is an appraisal). A verbal opinion would need a work file to produce an appraisal report from the work file )

 

[residentialguy]

If I told you that as an appraiser it is... (far as I know, because when appraiser gives a value it is their opinion, and an opinion of value is an appraisal). A verbal opinion would need a work file to produce an appraisal report from the work file )

But they didn't. So the lack of work file means it's not an appraisal?

 

[J Grant]

The plumber gave you his opinion of value.

So what?
He did not do an appraisal to support his opinion of value.

He and the rest of the world are allowed to give not supported opinions of value all day long - they can't call them an appraisal unless they did an appraisal but even there, there is no penalty for loose talk of not licensed persons. As long as they do not represent themselves as a licensed appraiser..

A person who is not a licensed plumber can fix their own leak or toilet , or do it for a neighbor, right ? Nobody can stop them. But they can't call themselves a licensed plumber.