Question from potential private customer re reconciliation at sale price.

[J Grant]

You are so far removed from reality its mind boggling. Just because you don't understand a post doesn't make it word salad - it may mean that the writing is above your reading comprehension level. Were I a betting man, I'd pick the latter.

You're incorrect again, btw. A competent appraiser will understand that any point within a well developed and supported range is just as credible and supportable as any other point. Which is why, IMO, folks reconcile to the contract price so frequently.

Finally - I do not trust any appraiser who doesn't understand the above. Its a very elementary concept, and for folks not to grasp it is REALLY scary.

How arrgonan of you to assume that I Do not understand it

The fact remains is that you are wrong in saying that in an appraisal, any point within a well-developed and supported range is just as credible and supportable as any other point. If you believe that, state it in bold type on the SCA to your client. I bet you don't !!! You mislead your client, they assume you had a credible reason, for picking X $ point value.

If the subject is highly upgraded, like the hither prices 2 most upgraded comps, for example. THAT is a reason to reconcile in the upper value range. Appraisl 101. You honestly do not understand that?

 

[alebrewer]

If you believe that, state it in bold type on the SCA to your client. I bet you don't !!!

First you accuse me of running an AMC, then you accuse me of failing to put statements in my reports. Which is it? You can't have both...

The fact remains is that you are wrong in saying that in an appraisal, any point within a well-developed and supported range is just as credible and supportable as any other point.

That's not a fact. What IS a fact is that any point within a well developed range of value is just as credible as any other point.

How arrgonan of you to assume that I Do not understand it

I mean, it's a well developed opinion after all. Isn't that what we do? Develop opinions based on observations?

 

[J Grant]

You are so far removed from reality its mind boggling. Just because you don't understand a post doesn't make it word salad - it may mean that the writing is above your reading comprehension level. Were I a betting man, I'd pick the latter.

You're incorrect again, btw. A competent appraiser will understand that any point within a well developed and supported range is just as credible and supportable as any other point. Which is why, IMO, folks reconcile to the contract price so frequently.

Finally - I do not trust any appraiser who doesn't understand the above. Its a very elementary concept, and for folks not to grasp it is REALLY scary.

I have never seen that concept in USPAP or any appraisal text - the concept that ANY value in a range is as credible and supported as any other for a point value. Link it to a source.

It exists in your head and perhaps in the heads of some other confused appraisers who either had a bad mentor or o their own developed bad habits.

Even an AVM has a weighted average or some other programmed reason to pick X $ as the value estimate out of a range. . Your concept makes an appraiser worse than an AVM . Unbelievalbe -

 

[Tom D]

That disclaimer, if you really provide it, should be a warning flag to a client that you are not to be trusted. I do not know of any appraiser who makes that disclaimer. Do you really say that in your appraisals? Where do you state it? In bold, or buried in mouse type?

If you do provide that disclaimer, chances are the client glazes over it and does not understand the implications.

When i started, it was 8 pages in my report, now i have 10 pages of just disclaimers. However, took one out when it was finally determined that we do an observation, not inspection. The appraisal report is a living document, as the left likes to call the law. I go with alebrewer on this thread. I also see some of j grants points.

And my disclaimers are in normal type, mouse type makes it to obvious. Nobody reads the full report anyway. These things are in there for protection in a lawsuit. That's the purpose of my question here, what will protect me from a potential lawsuit happening.

 

[J Grant]

First you accuse me of running an AMC, then you accuse me of failing to put statements in my reports. Which is it? You can't have both...


That's not a fact. What IS a fact is that any point within a well developed range of value is just as credible as any other point.


I mean, it's a well developed opinion after all. Isn't that what we do? Develop opinions based on observations?

An AMC past involvement is not the subject here - do you or do you not provide the disclaimer you posted in your appraisals?

Show me where it is a FACT that any point within a well-developed range of value is just as credible as any other point ( in an appraisal) Link a source in a textbook, FAQ from Fannie or the TAF or USPAP. You're saying that a fact is meaningless without proof.

Your last sentence is reasonable but avoids the topic of a point value; it is however conceptually it is correct that we provide a well-developed opinion.

 

[alebrewer]

Link it to a source.

From AI (Does the concept of 'value' - as used in real property appraisal - exist as a point or as a range?

In real estate appraisal, value is technically defined as a point estimate but is practically understood and applied as a range.

From a technical perspective:

• Appraisers are typically asked to provide a specific dollar amount as the "market value" of a property
• Appraisal reports usually conclude with a single value figure
• This point value is what's used for mortgage lending, taxation, and many legal purposes

However, in practice:

• Professional appraisers recognize that real estate valuation inherently involves uncertainty
• The sales comparison approach uses multiple comparable properties with adjustments, revealing a natural range
• Different valuation methods (cost approach, income approach, sales comparison) often yield slightly different results
• Market conditions and buyer/seller behavior create natural variability in potential transaction prices

Most experienced real estate professionals understand that any appraisal value represents a reasonable range - typically ±5-10% depending on market conditions, property uniqueness, and available data quality.

This is why you'll often see appraisers qualify their conclusions with statements acknowledging the estimate's precision limits, and why some more sophisticated appraisal methods include confidence intervals or probability distributions around the point estimate. (bold added by me)

 

[J Grant]

When i started, it was 8 pages in my report, now i have 10 pages of just disclaimers. However, took one out when it was finally determined that we do an observation, not inspection. The appraisal report is a living document, as the left likes to call the law. I go with alebrewer on this thread. I also see some of j grants points.

And my disclaimers are in normal type, mouse type makes it to obvious. Nobody reads the full report anyway. These things are in there for protection in a lawsuit. That's the purpose of my question here, what will protect me from a potential lawsuit happening.

Wow, I do not add any disclaimers.
The USPAP form comes with printed disclaimers in the certs and delimited conditions.

 

[J Grant]

From AI (Does the concept of 'value' - as used in real property appraisal - exist as a point or as a range?

In real estate appraisal, value is technically defined as a point estimate but is practically understood and applied as a range.


From a technical perspective:

• Appraisers are typically asked to provide a specific dollar amount as the "market value" of a property
• Appraisal reports usually conclude with a single value figure
• This point value is what's used for mortgage lending, taxation, and many legal purposes

However, in practice:

• Professional appraisers recognize that real estate valuation inherently involves uncertainty
• The sales comparison approach uses multiple comparable properties with adjustments, revealing a natural range
• Different valuation methods (cost approach, income approach, sales comparison) often yield slightly different results
• Market conditions and buyer/seller behavior create natural variability in potential transaction prices

Most experienced real estate professionals understand that any appraisal value represents a reasonable range - typically ±5-10% depending on market conditions, property uniqueness, and available data quality.


This is why you'll often see appraisers qualify their conclusions with statements acknowledging the estimate's precision limits, and why some more sophisticated appraisal methods include confidence intervals or probability distributions around the point estimate. (bold added by me)

a look up on AI is not USPAP, interesting as it is to read.

And AI is wrong, as it often is - for apparisers, value is not an estimate; it is an opinion.

AVM's and computers provide estimates of value. Appraisers provide an opinion.

 

[alebrewer]

a look up on AI is not USPAP, interesting as it is to read.

And AI is wrong, as it often is - for apparisers, value is not an estimate; it is an opinion.

AVM's and computers provide estimates of value. Appraisers provide an opinion.

Doesn't have to be from USPAP to be accurate.

 

[alebrewer]

Your last sentence is reasonable but avoids the topic of a point value; it is however conceptually it is correct that we provide a well-developed opinion.

Man - you REALLY missed that one...