Opinion of value letter

[Lee Lansford]

Does anyone use a letter of "opinion of value". I have been asked for one. They do not want an appraisal, but the agent wants a range of value to help list the property. What is yous guys (n' gals) "opinion" of the opinion of value. thanks

Yes, I "use" an "opinion of value" all of the time. When I do, "it" is properly understood as an appraisal.

 

[Mountain Man]

Offer them a fee for an appraisal with a limited scope of work that does not include inspecting the comparable sales, and give them a report with a value range. If they are really cheap, you don't even have to inspect the subject. It matters not if you use a form or write a short narrative, it must fit within USPAP.

 

[Meandering]

Realtors are asking you to do their job. Comparative Market Analysis is a Realtor product. Charge full fee for the summary appraisal report.

 

[Mountain Man]

Realtors are asking you to do their job. Comparative Market Analysis is a Realtor product. Charge full fee for the summary appraisal report.

With that attitude, don't expect to get much work or referrals from agents! I have a template just for such "listing appraisals" and the scope of work is very simple. Agents are a great source for work, don't blow them off so quickly...

 

[Mike Garrett RAA]

Realtors are asking you to do their job. Comparative Market Analysis is a Realtor product. Charge full fee for the summary appraisal report.

One size does not fit all....Intended Use, Intender User. I have a REALTOR® who sometimes uses me as confirmation of his Brokers Price Opinion (BPO) or Market Analysis.

You certainly can do a Restricted Use Appraisal Report (Letter) but it must comply with USPAP. One thing to remember about it...single user! Suggest you read Standard 2 before accepting such an assignment.

Cheers,


Mike

 

[CANative]

Santora said it best in his signature: No one wants an appraisal. They just want to know what it's worth.

 

[Riick]

Letter appraisal is just a FORMAT.
You could write the appraisal as a letter, or, on the palm of your hand, or on the side of the house.
Doesn't matter, and there is no minimum level of analysis you need to show in the letter.
IIRC, from the last one I did, 10-15 years back,
identify the property correctly,
state the interest you are appraising,
make a statement that you have all the data you used in file,
add-in an effective date,
and your value estimate &
you're done.

You have now made an appraisal...
It took the same work as doing a 1004, except you didn't fill-out of the form, or do other scut work.
Thus... get paid accordingly.

/

 

[Mike Boyd]

Restricted Use Appraisal Report!

I agree and would use a desk top appraisal form. Charge 'em whatever the market will bear. My fee for this would be $100.

 

[sneuman]

aloha

Wow!! Tough crowd. I DID NOT SAY I WAS DOING ONE!! Just was asked by an agent to help. I have been an appraiser for 20 years, been there done that and certified in 3 states. I understand USPAP, just wondering if this was the downward direction of our business, and maybe the agents cant manage all the BPO work they get to do instead of our appraisal work. Doing a Restricted report at $175 beats a P.O.S. AMC.

Aloha from the islands.

 

[incognito]

identify the property correctly,
state the interest you are appraising,
make a statement that you have all the data you used in file,
add-in an effective date,
and your value estimate &
you're done.

Riick, you better re-read SR2 of USPAP. What you have said is WRONG!!! EVERY appraisal REPORT (including oral) MUST HAVE, along with what you have indicated,:
-Identify the client/Intended user
-Identify the intended use
-Identify the property
-Identify the type of value and define it (or cite source of definition)
-Identify the scope of work
-Identify appraisal methods used
-Identify the use of the property and the Highest and best use
-Include a signed certification

Now, this can be written on a cocktail napkin, but your report would be deficient, and non USPAP compliant!