MV opinion vs a price estimate

[residentialguy]

Lol Hi Residential Guy and Happy Thanksgiving !

BPO is a Broker Price Opinion Appraisal is an Opinion of Market Value

THAT is why we can call it an appraisal! (because it is an opinion of market value and not a price opinion)

Which is also the supported opinion of the most probable price found within the the definition of market value defined.

 

[J Grant]

Which is also the supported opinion of the most probable price found within the the definition of market value defined.

The supported opinion is the opinion of market value ( as defined ) is X $ ....as of Y effective date. (and yes our market value opinon would have to support our price conclusion (xee last paragprah).
The "supported" for the opinion comes from the appraisal.,

When we do a review appraisal, there are a series of questions asked : Was the neighborhood information adequate, asks about the comp selection, about the adjustments, the cost approach, etc. The final question is do you agree or disagree with the opinion of value ( the $ dollar amount ) . So we see the market value opinion consists of elements in the appraisal and a market value opinion can be discredited by other factors besides the $ amount as the most probable price.

 

[residentialguy]

The supported opinion is the opinion of market value ( as defined ) is X $ ....as of Y effective date. (and yes our market value opinon would have to support our price conclusion (xee last paragprah).
The "supported" for the opinion comes from the appraisal.,

When we do a review appraisal, there are a series of questions asked : Was the neighborhood information adequate, asks about the comp selection, about the adjustments, the cost approach, etc. The final question is do you agree or disagree with the opinion of value ( the $ dollar amount ) . So we see the market value opinion consists of elements in the appraisal and a market value opinion can be discredited by other factors besides the $ amount as the most probable price.

Reread my response

 

[J Grant]

https://singlefamily.fanniemae.com/media/12356/display

Note the series of questions as to the quality of the market value opinion, the last one being agree or disagree with the opinion of market value $ amount.

They dont' ask do you agree or disagree with the sales contract price ( if there was a contract in a purchase appraisal)

 

[J Grant]

Reread my response

Okayl I re read it - yes our opinion of market value is also our supported opinion of the most probable price, however that does not make it into a price opinion !

It remains a market value opinion , even though it produces a $ amount ( of the most probable price as defined by the MV definition used) See my review post above, and if we re read the way the market value opinion is stated bottom of SCA page 2, it shows the appraisal is the market value opinion, and the market value opinion is the appraisal . A market value opinion is not just judged o its dollar amount of most probable price. If it produced the $ amount using the wrong comps, or poorly supported adjustments, or with material errors etc, it is not credible and can get a board omplaint etx, even if the $ amount is okay (by however it is judged okay lol )

 

[residentialguy]

Okayl I re read it - yes our opinion of market value is also our supported opinion of the most probable price, however that does not make it into a price opinion !

Sure it is. Who else's opinion is it?

 

[J Grant]

Sure it is. Who else's opinion is it?

We can't separate the price opinion out as a price opinion.

The price $ amount belongs to the market value opinion ( and yes the entire market value opinion is ours, including the price )

Not just a riddle or semantics...

 

[J Grant]

Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting conditions, and appraiser’s certification, my (our) opinion of the market value, as defined, of the real property that is the subject of this report is $ ,

The above is a market value opinion. The word price opinion or price does not appear in it. Just because we report it as a $ amount, does not turn it into an opinion of price.


ss defined

is the qualifier for the type of value in the opinion. The qualifier is the market value definition used in the appraisal (which is why it is a separate paragraph , and why a definition of market value is not the same thing, or interchangeable with, an opinion of market value _)

 

[residentialguy]

I agree that a BPO is not the same as an appraisal... However your opinion of value is an opinion of the most probable price, as defined in the definition of market value used.

 

[J Grant]

Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting conditions, and appraiser’s certification, my (our) opinion of the market value, as defined, of the real property that is the subject of this report is $ , as of , which is the date of inspection and the effective date of this appraisal

The bolded section is a summation of the appraisal ( the steps we took in the appraisal) and the grand finale is the $ amount. Clearly, the appraisal is the market value opinion. The price is the culmination of it as a $ figure ( or range of value if that is the assignment instead of a point value. But the $ amount belongs to the market value opinion, it does not get separated out to a price opinon.