Opinion of value below contract price

[J Grant]

hmmmm....interesting that I'm unable to agree or disagree with your perspective.....although comparison to the predominant value is simple to address especially if the subject metrics are inferior to that value--although any variance gets flagged by the UAD/HTML/$$$ review master, although possibly better addressed in the Market Research narrative; and the comparison to prior selling price inevitably is explained by condition changes, or by underlying market changes--although one just expects to be called to the carpet if the OP differs considerably from a relatively recent sale, providing the appraiser to be snarky by indicating that "the source of the variance between the OV rendered herin and the recent sales price pertains primarily to the market at that time in which the typical list/sales price ratio was 1.4% - 1.5%, also possibly reflecting the initial list price compared with the final selling price that based upon its exposure can't be justified retrospectively, possibly because the prior appraisal used for lending purposes was identical to the contract price, as often occurs although it is inappropriate to do so purposely.....maybe unnecessary banter, possibly exposing the report to further scrutiny, although human nature being what it is, by the time I first included this type of analysis I naturally presumed it was the absolute perfect approacH, indispensible [like me]. HA HA HA

Look up USPAP- a benchmark value (comparison to a prior sale price, for example ) is an appraisal. you have performed unnecessary additional appraisals that, as you said, can draw further scrutiny. I do not see an upside to it for the appraiser or for the client - so what is the point? Extra work that can bome back to bite you.

 

[alebrewer]

IMO, discussion of any known reasons the contract price is below the OMV is part of contract analysis. If the appraiser is unable to identify any common potential reasons (non-arm's length, property wasn't exposed, one or more parties didn't have Realtor representation, etc.) then disclosing the lack of ability to identify why the contract price is below the OMV is analysis as well.

 

[ZZGAMAZZ]

IMO, discussion of any known reasons the contract price is below the OMV is part of contract analysis. If the appraiser is unable to identify any common potential reasons (non-arm's length, property wasn't exposed, one or more parties didn't have Realtor representation, etc.) then disclosing the lack of ability to identify why the contract price is below the OMV is analysis as well.

Dear brew-meister: That premise gotta be included in the "Appraisal Files" mini-series...."On tonight's episode, counsel for the appraiser who is the defendent in the must-watch court case poses his argument that the failure to report potentially-significant data reflects an analysis that should have been conducted, the failure to do so consequently impeaching results of the appraisal obtained by opposing counsel." [IMO you're damn entertaining as well as interesting and intelligent, as always! Although it's absolutely extraneous to this forum, I betcha that if you're a parent, your chillren are preparing for grad school in the Ivy League, or designing computer code, or backpacking in Paris, seeking Truth ....]

 

[ZZGAMAZZ]

Look up USPAP- a benchmark value (comparison to a prior sale price, for example ) is an appraisal. you have performed unnecessary additional appraisals that, as you said, can draw further scrutiny. I do not see an upside to it for the appraiser or for the client - so what is the point? Extra work that can bome back to bite you.

JG, I'm too weary or lazy to do a word seach in USPAP. Would you be so kind as to advise of the USPAP location of that factor?

 

[alebrewer]

Dear brew-meister: That premise gotta be included in the "Appraisal Files" mini-series...."On tonight's episode, counsel for the appraiser who is the defendent in the must-watch court case poses his argument that the failure to report potentially-significant data reflects an analysis that should have been conducted, the failure to do so consequently impeaching results of the appraisal obtained by opposing counsel." [IMO you're damn entertaining as well as interesting and intelligent, as always! Although it's absolutely extraneous to this forum, I betcha that if you're a parent, your chillren are preparing for grad school in the Ivy League, or designing computer code, or backpacking in Paris, seeking Truth ....]

haha! Kids that don't follow blindly - check. Kids that have embraced post-graduate education - that's a negative ghostrider. Son is on Y17 in the Army. Daughter is a flaming liberal.

 

[Vermonter]

DO NOT SPECULATE about anything related to the subject buyer motivations. Unless the buyer told you "we wanted this house at any price", just report the facts.

Clarify the data for your OMV and expand comments in your reconciliation. With the correct explanation and enough supporting data, the difference between contract price and OMV will be obvious. Could be you already did this and they didn't read it, but then you just point them to it.

 

[ZZGAMAZZ]

haha! Kids that don't follow blindly - check. Kids that have embraced post-graduate education - that's a negative ghostrider. Son is on Y17 in the Army. Daughter is a flaming liberal.

Sir, nobody but YOU at fault for imparting the intelligence for your daughter to be a free thinker, to the exent that she disagrees with most everything you say!!!!!!!!!!!! I was talking just last night with a guy who was my college roomie way too many decades ago. He's a Community College English instructor in SoCal who's thrilled if one or two students each semester are baseline literate, let alone intelligent enough to even try to be creative. Between his frustration with students, and his frustration with administrators who require him to be student-friendly to the extent that his intelligence is compromised, because the campus receives funding based upon enrollment--it's like he has given up on the USA. He even stopped using his Jaime Escalante impression to motivate students.

 

[alebrewer]

Sir, nobody but YOU at fault for imparting the intelligence for your daughter to be a free thinker, to the exent that she disagrees with most everything you say!!!!!!!!!!!! I was talking just last night with a guy who was my college roomie way too many decades ago. He's a Community College English instructor in SoCal who's thrilled if one or two students each semester are baseline literate, let alone intelligent enough to even try to be creative. Between his frustration with students, and his frustration with administrators who require him to be student-friendly to the extent that his intelligence is compromised, because the campus receives funding based upon enrollment--it's like he has given up on the USA. He even stopped using his Jaime Escalante impression to motivate students.

touché'. My daughter and I have a great relationship - she's probably the reason I'm as close to center as I am. We've learned much from each other.

 

[alebrewer]

DO NOT SPECULATE about anything related to the subject buyer motivations.

Agreed. That's an easy habit to slip into, as part of our job is to try to quantify motivations (e.g. what is 'typically' motivated?). However, REALLY bad idea to introduce that into our contract analysis. Fact: The property was not exposed to the market through MLS; this could have a potential impact on the contract negotiations. Speculation about motivation: The property was not exposed to the market through MLS, thus the seller may not be well informed about the subject's true value.

 

[ATNA]

DO NOT SPECULATE about anything related to the subject buyer motivations. Unless the buyer told you "we wanted this house at any price", just report the facts.

Clarify the data for your OMV and expand comments in your reconciliation. With the correct explanation and enough supporting data, the difference between contract price and OMV will be obvious. Could be you already did this and they didn't read it, but then you just point them to it.

Well, that's my original argument. If they would just read the report and my reconciliation, then it's the support needed for my OV. But they are just looking at the final numbers and don't like it.