Question from potential private customer re reconciliation at sale price.

[J Grant]

What AMC affiliated appraisers are you referring to?

You,? Anoyne affiliated with one /who used to work for one or manage one - or are buddies with somebody that does !

 

[J Grant]

"...value was reconciled at the exact sale price. She was curious as to why?"

I would have told her....
It is "curiouser and curiouser"....
And smiled....

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An appraisal MV opinion that reconciles at the sale price can be well supported, marginally supported or not well supported - each case is different.

 

[J Grant]

I have no problem appraising over the SC price btw - if a higher $ amount is the better supported value.

Nobody minds that lol, they only get upset if it reconciles below the SC price -

 

[alebrewer]

You,? Anoyne affiliated with one /who used to work for one or manage one - or are buddies with somebody that does !

Oh yeah - I forgot that I let it slip that I'm the CEO of one of the largest AMC's in the galaxy.

As an aside - and to be clear - you're saying that appraisers aren't allowed to be friends with anyone who works for an AMC - or they're traitors. Right?

 

[Junkyard Dog]

I mean if you work with lenders and AMCs, the only way to keep $$ coming in and making everyone happy is to hit that sales price.

 

[J Grant]

Oh yeah - I forgot that I let it slip that I'm the CEO of one of the largest AMC's in the galaxy.

As an aside - and to be clear - you're saying that appraisers aren't allowed to be friends with anyone who works for an AMC - or they're traitors. Right?

I did not say that - have a nice day!

 

[Terrel L. Shields]

The MV point value is already a price point within a range.

Do you state the range? And what does a range imply?

 

[J Grant]

Do you state the range? And what does a range imply?

The range is there on the grid for them to see, so I do not re-state it again; however, if an appraiser wants to, go for it.

I don't care what the range implies or to play world games or guess why you are asking that - if we are assigned to provide a point value, I provide a point value - and it typically is within the adjusted range of my comps.

If you do not believe an appraisal can develop a credibly supported point value for a property, then why are you providing a point value for your clients ? ( assuming that you do )

 

[Terrel L. Shields]

If you do not believe an appraisal can develop a credibly supported point value

Like many charades a point value is nonsense even though required by the PTB. No one should or does believe a point value is the "real" value. It is the contrived value of the systematic approach we call the "appraisal process."

 

[RustyTapeMeasure]

Had an interesting call from a potential customer. She is looking to purchase a home in the area, and wanted to get an appraisal prior to submitting a bid. She stated that the last two homes she or relatives had purchased, the appraised value was reconciled at the exact sale price. She was curious as to why? I told her without knowledge of these properties or appraisals that I could not answer that, but did tell her that if I was doing an appraisal and the comps adjusted to a tight spread, and the sale price fell in the middle, why not reconcile at the sale price? I reiterated the definition for market value. Then I saw a post from a realtor stating in her opinion, a lot of appraisers just try to reach the sale price to make their clients happy. That got me thinking, does the general public feel an appraisal is inaccurate if reconciled at the sale price??

I had a private friend once, dropped my trousers and said "reconcile THIS !! " she told me a downward adjustment is very likely warranted. Told her I don't need the graphs and illustrations to follow that up.