RE Mogul Finally Admits It !

[Alan Simmons]

Rstrahan:

In your example the buyers although willing were still devoid of ability. They NEVER, in and of themselves, had the ability to completely satisfy the agreements. In fact I would not be surprised to learn the Developer was specifically able to inflate values because he understood the buyer's lack of financial ability (which can include knowledge). Therefore we agree they were incapable of establishing value.

However I still content that a willing seller and a willing and ABLE buyer establish value. This is not the same as saying that they establish "the most probable price…"

 

[Pamela Crowley (Florida)]

Hmmmm,

From the Definition of Market Value on FNMA Form 1004B:

'... each acting prudently, knowledgeably...'

and

'... both parties are well informed or well advised,...'

I regularly teach a basic appraisal class for new Realtors at a local office and the Definition of Market Value is where I start each class. These portions are what I spend the most time on.

 

[J in Florida]

I recently was a TERRIBLE appraiser and appraised a house for less than the contract price (I got some nerve). The L/O-Branch Manager for a large mortgage company with 20 years in the business pulled out the "if you have a willing buyer and a willing seller you have market value" card. I proceeded to show here the definition of market value preprinted on this and EVERY SINGLE appraisal shes had on every single loan she had done for the past 20 years and....


You guessed right. She had never ever read this before.