Reconsideration of Value: How to respond?

[Calvin the Airedale]

Where is Mentor these days? Hope he is okay have not seen any posts for months.

I swear I had nothing to do with this.

But and interesting coincidence nonetheless!

 

[J Grant]

What did you do to him Calvin? Is he buried somewhere with cement shoes? Is he in witness protection? What happened to Mentor?

 

[vanguard]

What did you do to him Calvin? Is he buried somewhere with cement shoes? Is he in witness protection? What happened to Mentor?

J Grant: He is still listed as active on the ASC.gov. He may have returned to the lending industry or working for the many AMC's who have offices in Minnesota. All of the biggies are here.

 

[residentialguy]

I talk to him. He's very busy doing appraisal work right now - no AMCs. lol.

 

[J Grant]

I thought they were all in Corapolis PA...hope Mr Mentor is okay, I disagreed with him 90% of the time but enjoyed his posts and dry wit.

 

[Mr Rex]

Wells is big in MN isn't it? Are the RELs offices there?

 

[residentialguy]

I'm not sure...I don't work for POS AMCs.

 

[Mike Kennedy]

I never said that, JG. A buyer can pay too much. It needs to be supported by the market. As you well know, I've opined MV below contract. But I didn't do it as a result of ignoring relevant market data and using the easiest sales, ignoring their condition of sale, etc.


It's a USPAP thing. We are to consider all market data and the subject contract is considered a "significant piece of market data" by USPAP. While not to be a target, a competent analysis of relevant and credible market data must be the appraiser’s basis for a market value conclusion.

The USPAP states "if available during the normal course of business", if not, state what efforts were made to obtain the contract (if one exists) and complete the report without it. Suggest reviewing the Requirement.


Until F&F decided to make damned sure the Bullseye was communicated to Appraisers (fairly recently) - their requirements mirrored the USPAP requirement. Despite their own mandatory definition of Market Value which requires an OMV give ZERO weight to Discounts, Buydowns, or Concessions - they revised their Selling Guides to prevent a deluge of loans going south due to Low "valuations". The reason given in the Fannie Selling Guide - to ensure the Appraiser appraises the "real" Contract Price.

p.s. Market Data is extracted from the Market - NOT a Subject.

 

[residentialguy]

The USPAP states "if available during the normal course of business", if not, state what efforts were made to obtain the contract (if one exists) and complete the report without it. Suggest reviewing the Requirement.

ahhhhh.......Huh? We're talking about the subject here...I think that's available to the appraiser during the normal course of business

 

[Mike Kennedy]

Not always. In fact many lenders (hard and soft), smaller banks, etc. intentionally do NOT provide a copy of a Contract with instructions to RE agents NOT to divulge the Confidential Contract Price so they obtain a truly independent and objective opinion of market value dictated by the Market. Further, there are many occasions when buyer & seller agreed to let an appraisal (or 2) set the Contract Price and only sign a Binder in advance of an appraisal.