REO sales and "Market Value"

[residentialguy]

I just told you that I tell the client that this form is to opine MV. Stop with your goobdley gook and explain to me how am I modifying it when I opine MV? Explaining that my report is not liquidation or disposition value is not modifying MV.

The REO addendum calls for 4 values, not just MV.

 

[J Grant]

I just told you that I tell the client that this form is to opine MV. Stop with your goobdley gook and explain to me how am I modifying it when I opine MV? Explaining that my report is not liquidation or disposition value is not modifying MV.

The REO addendum calls for 4 values, not just MV.

You just backtracked ! All your posts explain how you are opining distressed sale value, (after "clarifying" it). Now you say you are opining MV? You keep mixing up terms, such as the last one, "the REO calls for 4 values, not just MV"

The REO addendum is asking for 4 market values. The first is the "As is" market value on the report. The second is, an "As repaired " market value, (assuming repairs are called for). The third is an "as is" market value if sold within X days, and the fourth is an "as repaired " market value if sold within X days.

Nowhere does it state they are asking for a 30 day distress sale value or 30 day liquidation sale value, which would mean they are compelled to sell within that 30 day time frame.

If they wanted those values, they would ask for them, and it would be specified on the report.

If you want to offer a fifth value, a distressed sale value within X days, that would be accetable as it would be clear what it is.

 

[J Grant]

Res Guy, I just pulled up the REO addendum. IT calls for 4 diff market values. For example, (from the form)

"As Is estimate of market value based on a client imposed restricted market exposure time of __ days".

Each of the four values on the REO addendum is labelled market value.

 

[residentialguy]

All your posts explain how you are opining distressed sale value, (after "clarifying" it). Now you say you are opining MV?

Read my prior post below here. I said they would need a different form. I must report MV on page 2 of the 1004. (although I could state other values in elsewhere, if I wanted, but won't if they don't pay me for it)

That's when you say, "let's use the correct form, shall we".
I've done that and of course they want that form. Sooooo...I tell them I can use it but to make note that MV may not be the same for a distressed sale. I then let them know that I clarify that on the report as a reminder. (I will also state on the report that this conversation with the client took place and this was understood by the client).

The REO addendum is asking for 4 market values. The first is the "As is" market value on the report. The second is, an "As repaired " market value, (assuming repairs are called for). The third is an "as is" market value if sold within X days, and the fourth is an "as repaired " market value if sold within X days.

NO! That's not MV as defined on the 1004. Market value must be a reasonable time allow for exposure. Once the set a limit, the conditions of MV has changed.

Nowhere does it state they are asking for a 30 day distress sale value or 30 day liquidation sale value, which would mean they are compelled to sell within that 30 day time frame.

Now you're playing thick. You know what it is they're doing...and if you don't you have a USPAP responsibility to find out.

 

[J Grant]

Res Guy, please pull up an REO addendum on your software. Does it not say, an "Estimate of market value within a client imposed restricted marketing time of X days?"

They are asking for a MVO with certain condtions, you are correct about that, but that is still not the same as asking for a LV or distressed sale value. They are specifically asking for a MV within a certain DOM. The dom might have an affect on value, if it is shorter than predominant DOM. You estimate affect of shorter market exposure on price, a good way is to compare sold prices of homes that sold within X days.

I have done REO appraisals where predominant days on market was 90 days, and with a 90 day client imposed marketing time , the value opinion was the same.

 

[moh malekpour]

I'm doing one right now were I am putting it on a land form since it's HBU is razed. The scope of work does not include opining Market Value, as defined by FNMA. They want a 90 day disposition value and 30 day Liquidation value. These value types both have the seller as a lender being under high compulsion to sell.

What you are doing is REO land appraisal using land appraisal form. What I asked was REO Real property appraisal, which is land and improvements together.
I repeat my question.
Have you or anyone else ever done REO property (not land) appraisal for Fannie, Freddie, HUD, VA, or any major bank that they didn't require:
A-URAR form with a market value in the second page.
B-Supplemental REO appraisal addendum with “as is” and if applicable “as repaired” market value based on reasonable market exposure time and “as is” and if applicable “as repaired” market value based on client restricted market exposure time (not to exceed 120 days)?
I am curious to know

 

[residentialguy]

Res Guy, please pull up an REO addendum on your software. Does it not say, and "Estimate of market value within a client imposed restricted marketing time of X days?

Yes, but those are not to be confused with MV defined on the 1004.

Liquidation value is a market value. Everything sold on the market under all conditions is a market value...the conditions are what set it. The problem with the REO addendum, is the huge lack of clarity. I'm mean, come on...half a line to explain market value???? m2:

 

[residentialguy]

The REO addendum is NOT for MV conditions set on the 1004. It is a REO addendum. What is a REO? It is a distressed sale. They want to know the most probable price (MV) of a REO sale...hence why the labeled it "REO ADDENDUM"..it is for opiniong MV of a REO codition of sale.

 

[J Grant]

Yes, but those are not to be confused with MV defined on the 1004.

The form is a 1004, the MV definition does not change. The only thing that changes on the addendum, are two requests for a MV with a specific client imposed restricted marketing time. If you feel a marketing time, such as 30 days, will result in a value that is similar to homes sold for distressed value, you could comment on that, but you are still providing a MV opinon, not a distressed value opinion.

Liquidation value is a market value. Everything sold on the market under all conditions is a market value...the conditions are what set it.

Correct!

The problem with the REO addendum, is the huge lack of clarity. I'm mean, come on...half a line to explain market value???? m2:

The REO addendum is clear, you are the one who is confused! The REO addendum asks for four opinoins of MV. Oy veh....:new_multi:

 

[residentialguy]

Yes, four opinions of the value as a REO sale. You better read this again if that is confusing you. [URL]http://appraisersforum.com/showpost.php?p=2288899&postcount=288[/URL]