Opinion of value below contract price

[J Grant]

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?

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According to USPAP, a value can be expressed as either a range of numbers, a specific point value, or a benchmark depending on the situation and the type of appraisal being conducted; essentially, all three options are possible under USPAP guidelines.

A quick search online shows USPAP requires a work file on an appraisal even if the appraisal is verbal, or a one line sentence etc.

 

[Tom4value]

I just tell them what I know and speculate what MAY have happened. A common comment:

“The opinion of market value is higher than the asking price but below the contract price. According to the listing broker, there were x offers in the x days it was on the market. It was indicated that most offers were above the asking price, which indicated that the asking price was below true market value to encourage activity. After evaluating market trends, listings and actual sales prices, it is determined that the contract price of $zzz,zzz cannot be supported with current market data.”

 

[ZZGAMAZZ]

I just tell them what I know and speculate what MAY have happened. A common comment:

“The opinion of market value is higher than the asking price but below the contract price. According to the listing broker, there were x offers in the x days it was on the market. It was indicated that most offers were above the asking price, which indicated that the asking price was below true market value to encourage activity. After evaluating market trends, listings and actual sales prices, it is determined that the contract price of $zzz,zzz cannot be supported with current market data.”

IMO that narrative would satisfy most any lingering peripheral concern...