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"opinion Of Value"

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Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
OK folks in the rush of busy-ness and trying to be all things to all people my memory sometimes fails...

Would some one please cite me sources and reasons why we change our final reconciliation and other "printed on the form" wording to "my OPINION of value" ...in addenda to the appraisal report?

An appraiser friend just called me in hysterics because someone called them out (in an otherwise 'clean' State Board review :eek: !) and they had never heard of this 'new thing'.

I honest to Pete cannot :huh: remember :redface: why other than vague recollection that it has something to do with :sniper: Lawyers that we have this change. but then MOST changes are liek that, so no joy (or source) there.

Please advise!
I am in danger of losing my current CSP designation. :(

(Certified Smarty-Pants) B)
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
USPAP 2003
Page 3, line 113
Market value: a type of value, stated as an opinion---------

Page 16, line 553
------and, if the value opinion is to be developed is a market value---------
 

Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
It is my opinion that all too often semantics get in the way of doing a job. :angry:
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Sigh:

Jo Ann you are a gem... I thank you for those references... but can some buddy appraiser explain (so's I can explain :blink: ) WHY we now put in that little ditty about all items now are 'value opinions' :confused: Homeslty at one time I thunk I understood but now I am confuzelled.

Dave:

I COMPLETELY agree :angry: .
 

Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
Lee Ann:

I approach it from the standpoint that I am expressing my opinion as to the value of a property.

The buyer has an opinion of value.

The seller has an opinion of value.

The Realtor has an opinion of value.

The buddy at work has an opinion of value.

The LO has an opinion of value.

The UW has an opinion of value.

Everybody has an opinion of value.

We are dealing with facts (mostly) but on the bottom line we are expressing an opinion as to what those facts mean. Nobody else has to even consider the facts. They just have to express their opinion. We get paid for ours. At least most of the time.

Sigh :mrgreen:
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
I agree with Dave. And there are some other notations about opinion of value in USPAP but I can't find my cheat sheet that somebody made in 1999 when the change was made. It referred to the section of USPAP that changed estimate to opinion. Appraiser's issue opinions of value, AVMs issue estimates of market value. Kinda off the subject but that is one of the reasons I get so wound up about "recerts". Appraisers do not certify value--they certify the procedures, methods and techniques that they followed in arriving at an opinion of value. So how can an appraiser "recertify" a value since they didn't certify one in the first place???? Appraisers develop an opinion of value based on supportable data. Lenders, loan officers, home buyers, other non-appraisers throw a dart at a dart board to develop their opinion of value. But the appraiser is a professional and has to have data to support whatever opinion they come up with.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Many Thanks. JoAnn and other opinions welcomed!

and double thanks for putting a date on it so I don't fell QUITE so silly... I mean after 4 years or so I am entitled to ... hmm let's not GO there :D

...Problem was that concept has been part of my appraising and reporting for so long I 'sort of' forgot why and 'donkey nodded' "Yup, I KNOW that" when it came up in class this past summer. I don't even recall if it was exponded on cause I turned off my ears :ph34r:

Boy did I feel stooopid! when this friend was asking for explanation and I reached and found ... a scruffy dusty memory that said... 'cause I remember it is what we are doing!' ... but could NOT defend WHY! :eek:

I HATE that :(

senior moment setting in concrete.
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
B) FWIW,

I simply write in the Conditions of Appraisal section on back page of URAR 'The term estimate of value is hereby changed to mean opinion of value as required by USPAP".

Don
 

hal380

Senior Member
Joined
Apr 26, 2003
Professional Status
Certified General Appraiser
State
Connecticut
Hi Lee Ann;

As it was explained to me in one class or other....."We form an opinion of value based upon reasoning, judgement and experience" This is to differenciate us from computers which when programed can do an ESTIMATE of value. The estimate of value as produced by a computer does not involve judgement, rreasoning, or experience.

Yes pure sematics, but with the fed requiring an appraisal on all loans which involve federal funds or insurance etc, someone or group, felt it was important to define an appraisal as an opinion vs an estimate.

Regards

Hal
 
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