MV opinion vs a price estimate

[J Grant]

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

Far as I know, the lack of a work file means they are out of compliance with USPAP.

 

[residentialguy]

Far as I know, the lack of a work file means they are out of compliance with USPAP.

Agreed.
I would argue that an appraiser can give there opinion of value without having a work file.

 

[J Grant]

Agreed.
I would argue that an appraiser can give there opinion of value without having a work file. Loose pap standards are always based upon a work order for an appraisal.

I agree, an appraiser can give an opinion of value without having a work file
However that could make them vulnerable to being out of compliance with USPAP or being sued for a not supported opinion...

 

[residentialguy]

I agree, an appraiser can give an opinion of value without having a work file
However that could make them vulnerable to being out of compliance with USPAP or being sued for a not supported opinion...

I disagree. Loose pap standards are always based upon a work order for an appraisal. You saying comp 1 sold over MV or saying that that house isn't worth $2m in a conversion is not an appraisal enforced under USPAP standards

 

[Carnivore]

USPAP didn't have to say that because it is right there in the definition of market value.

Yes, thats important but USPAP Definitions Page 5 Line 131-135 addresses this topic. Additionally AO 22 pg 116 provides some guidance.

For the Record any utterance of a Value or range of value, let's say in a casual setting i,e Cocktail Party or Boys nite out at the brewery can be problematic for a Licensed Appraiser. Why do you think Doctors & Lawyers will tell you to make an appointment!

 

[Terrel L. Shields]

A report can be self-contained, require no labeling or not as such, therefore the workfile could be minimal beyond the report. You could place all supporting information in the addendum. The work file is a nothing burger in regard to the different in reporting a price estimate and reporting the work as an appraisal. Evaluations for banks do not require the value to be labeled "market value" nor the report to be called an "appraisal". The evaluation can report a "probable price" and Graaskamp suggested the appropriate definition of MV be changed back in the 1980s.

 

[glenn walker]

The major difference between market value and market price is that the market value, in the eyes of the seller, might be much more than what a buyer will pay for the property or it's true market price. ... As supply decreases and demand increases, the price will rise, and value will then influence price

 

[residentialguy]

OP is like riding on "It's a Small World" ride, except it really never stops.

 

[George Hatch]

This whole series of threads reminds me of the ZAIO Wars back in the day where Tom Inserra and a couple of their franchisees engaged in a heroic effort to deflect from the operative question at hand because the actual answer to that question was going to gut their business model. The question this time is different but the pretzel logic is similar.

 

[J Grant]

The major difference between market value and market price is that the market value, in the eyes of the seller, might be much more than what a buyer will pay for the property or it's true market price. ... As supply decreases and demand increases, the price will rise, and value will then influence price

I read a quote somewhere - "price is what you pay, value is what you get"

Prices are facts, (whether we call them market prices or not ), prices are numerical monetary amounts , and value, or market value, is people's perception or judgements about the prices. The so called average person, buyers and sellers, have an innate sense of "market value " - they will say things like " I paid too much, I paid to little, I got it at a fair price, I sold it for a steal " etc. Market value seems to be an equilibrium between price and value, and not every sale price represents that.

The definition of value as used in an appraisal spells out the most probable price terms of sale for that type of value (usually market value )

The appraiser's opinion is the appraisal result, the opinion of market value ( as defined ) of X $ ...... ( as defined links to the value definition for sale terms for the most probable price_. It is what it is, and what it is is an appraisal ! An apprisal is an opinion of value and an opinion of value is an appraisal . Yes we express it as a $ amount ( of the most probable price , as defined ).