Practice The Neglected Art Of Verification And Due Diligence

[CANative]

lol... thank you.

 

[J Grant]

The point of the article is simple and one I subscribe to, analyze the contract but don't let the contract price "drive" the value opinion.

A fraudulent contract is an extreme example, but the same reality exists across the board; parties are under no obligation to arrive at a price that is "market value". Analyze a sales contract, consider it, but don't shape the appraisal around meeting a SC price and problem solved.

I personally think the author's assertion that 95% of appraisers appraise to contract price is high though his view may reflect his experience in commercial. In residential, quite often we see OMV above or below a SC price and especially when below, the SC price is negotiated down to the MV opinion.

 

[Terrel L. Shields]

consider the recorded, Closed Sale price

I know two that require contract for deeds to be recorded and they do rely upon them too.

 

[CANative]

lol... thank you.

The point of the article is simple and one I subscribe to, analyze the contract but don't let the contract price "drive" the value opinion.

A fraudulent contract is an extreme example, but the same reality exists across the board; parties are under no obligation to arrive at a price that is "market value". Analyze a sales contract, consider it, but don't shape the appraisal around meeting a SC price and problem solved.

I personally think the author's assertion that 95% of appraisers appraise to contract price is high though his view may reflect his experience in commercial. In residential, quite often we see OMV above or below a SC price and especially when below, the SC price is negotiated down to the MV opinion.

That's not what Vern wrote.

Various studies have consistently reported that appraisers estimate values identical to purchase prices in 96 to 97% of instances

 

[J Grant]

Are you a neanderthal ? I am expressing my opinion on his article, not restating what Vern wrote. Why would I paste exactly what he wrote as my own post? And why interject assessor practice into the thread it's off topic . His article was not about assessment for tax purposes.

 

[jay trotta]

I know two that require contract for deeds to be recorded and they do rely upon them too.

Now that is interesting; doesn't happen here.

 

[CANative]

Are you a neanderthal ? I am expressing my opinion on his article, not restating what Vern wrote. Why would I paste exactly what he wrote as my own post? And why interject assessor practice into the thread it's off topic . His article was not about assessment for tax purposes.

Wow.

I guess it was too subtle for you or beyond your experience.