REO sales and "Market Value"

[residentialguy]

JG, clarifying is inventing a new definition. Nice try.

 

[residentialguy]

I'm anticipating some hypocritical actions on your part.

Such as.....

(it's like pullin teeth here)

 

[J Grant]

JG, clarifying is inventing a new definition. Nice try.

But that's what you do. You are saying things like, "The client wants the market value of a non distressed sale", or, the client wants a MV of the subject as a distressed bank sale.

That is inserting a new word and new meaning into MV definition, which is modifying it.

 

[residentialguy]

But that's what you do. You are saying things like, "The client wants the market value of a non distressed sale"

That is inserting a new word and new meaning into MV definition, which is modifying it.

No, when you have something that has a possibility of different meanings, stating the exact meaning meant is clarifying...to make clear as to which direction is meant.

 

[Mile High Trout]

Adjusting an REO upward to better match one of the rare non distressed offering prices is tantamount to selling rainbows.

There is no gold at the end of the rainbow, or robust values as if distressed sellers are not on every corner, simply due to administrative policy on comp choice and adjustment.

If upward adjusting REO's in bifuricated markets were intellecutal acrobatics;

It would be a triple gainer back flip side twist grab flip twist triple gainer again, with no net, of course. And you'd have a baby swinging on the other end, to grab you after your leap of faith.

 

[residentialguy]

Thank you for that, MHT

That made me feel much more like I do now than I did before.

 

[J Grant]

No, when you have something that has a possibility of different meanings, stating the exact meaning meant is clarifying...to make clear as to which direction is meant.

You are the one inserting different meanings into the MV definition! The MV def has one meaning, exactly as stated. The fact that appraisers grapple with how to apply the definition to changing market conditions and the presence of REO sales is an appraisal practice issue, not a client communication issue .

The assignment states that purpose of the appraisal is to derive an opinion of MV on the engagement letter, and the form is specified with a preprinted definition of MV on a cert , what is there to "clarify"?

 

[residentialguy]

Nothing JG... You have the ultimate clarity. There is no confusion. You know exactly what the client wants and what the GSEs meant. The Appraisal Institute doesn't know what they're talking about. USPAP, smooshpap. 40% of the market is wrong. You can appraise to the exact dollar. You are a god.

 

[J Grant]

I wish! If I were God, I'd give myself millions of $ so I could stop appraising!

 

[J Grant]

Aimed at no one in particular, but, it irks me when appraisers claim that banks can't possibly be a typical seller, or that the actions of banks does not reflect the actions of "ordinary sellers"...

Well, who the heck was living in the house before it became an REO? Who defaulted on the mortgage? A "regular seller" (who couldn't sell the house for mortgage amount). A regular person. A "typical" homeowner.

So, we have the original homeowner who defaulted and set in motion the REO process... we can't say the actions of the original owners who default are atypical because they are a bank! The homeowner defaults, and sets in motion the lender taking over and marketing house as an REO. Thus, the banks' actions as a seller are an extenstion of the actions of many "typical" former homeowners.