Quantifying Buyer Motivation

[Meandering]

And the buyer is not acting in their own best interest, but the seller is going wee-wee-wee all the way to the bank.

But you don't know what they buyer's best interest is.

Maybe it was their grand daddy's property and grand daddy buried a million dollars in gold coins in a wall in the basement.


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[margaret nelson-quin]

I was being a smart butt. The spread is way too large. I'm not sure how you can rationale the adjacent property. The motivations of one don't fit the rest of the market.

I agree for most sectors, but in this destination location it is the norm for properties in this price range. In the end I decided to include it in the grid (the sale has been a point of contention in the dissolution), talk a lot about the definition of market value, the need for exposure to a competitive market, how a buyer acting imprudently should not influence the market, and give it nominal weight in my opinion of market value. My gratitude to all the seasoned professionals who were on AF late last evening providing invaluable insights.

 

[margaret nelson-quin]

I was being a smart butt. The spread is way too large. I'm not sure how you can rationale the adjacent property. The motivations of one don't fit the rest of the market.

I agree for most sectors, but in this destination location it is the norm for properties in this price range. In the end I decided to include it in the grid (the sale has been a point of contention in the dissolution), talk a lot about the definition of market value, the need for exposure to a

But you don't know what they buyer's best interest is.

Maybe it was their grand daddy's property and grand daddy buried a million dollars in gold coins in a wall in the basement.


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Wow! I hadn't even thought about that angle. I put several other 'best interests' to the test though. Eventually I realized that it didn't matter, I couldn't rationalize the sale price.

 

[Meandering]

Irrational people

Are the most fun.

 

[gregb]

Typically in a GSE appraisal the result of the Sales Comparison Approach is a value conclusion based on the central tendency in a Market Value opinion.

 

[Mr Rex]

But you don't know what they buyer's best interest is.

Maybe it was their grand daddy's property and grand daddy buried a million dollars in gold coins in a wall in the basement.


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Wouldn't that be undue stimulus? Typically motivated? Most probable price? The definition of market value requires consideration of the definition as a whole, not isolating snippets, although lack of adherence to any one of the snippets could result in violating the concept of market value.

 

[J Grant]

Typically in a GSE appraisal the result of the Sales Comparison Approach is a value conclusion based on the central tendency in a Market Value opinion.

I don't agree with a one size fits all. GSE or not,

The most probable price means most probable for the subject and market conditions. The most probable price can be a higher, lower or mid range of price, but whatever end of the range it should be credibly supported by the qualities of the subject as well as market trends.

Example a subject in poor condition in a declining market hard to support most probable price as the high end.. ( I would not have put the OP's outlier sale on the grid btw)

 

[Meandering]

Wouldn't that be undue stimulus? Typically motivated? Most probable price? The definition of market value requires consideration of the definition as a whole, not isolating snippets, although lack of adherence to any one of the snippets could result in violating the concept of market value.

Maybe you should read all the posts in the thread,

before getting irrational.

 

[Mr Rex]

Perhaps you could provide a synopsis with a little less snarkiness. WTF has happened to you Marion?

 

[Meandering]

Perhaps you could provide a synopsis with a little less snarkiness. WTF has happened to you Marion?

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Hope this helps get you up to speed, of what's already been established, or not, or even if "market" was the value sought.

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