ROV - "add comments why you didn't hit the sales price".

[Sadie]

So what's your point? Other offers is just simply competition ie open market at play. Inventory shortages is simply supply and demand, also a normal part of the open market. Interest rates have been hovering around 3.5 since 2014. Did you use to appraise set price grocery foods before becoming an appraiser?

What do you say when your client asks why your market value estimate differs from the contract price?

 

[residentialguy]

Overbidding on a property, Ooops


IF this isn't' numbers manipulation..........hope ya'll are keeping all those requests in your file

Seeing what similar properties are currently selling for determines whether or not they're over bidding.

 

[residentialguy]

What do you say when your client asks why your market value estimate differs from the contract price?

Depends on what I found out when talking to both parties. Why didn't they buy the other similar property for less? Sometimes it was an uniformed buyer (bad agent) Sometimes it was undue stimulus. (The house was next to his dying mom)

 

[J Grant]

If there are 8 bid/offers for a house, and the highest wins, it means 7 of those potential buyers thought the house was worth less than the highest winning offer. That is the difference between analysis and DOH a buyer is willing to pay highest so it is worth the highest.

Maybe it is worth the highest as a credibly supported appraisal OMV, or maybe not. Only the appraisal development can determine that.

Remember that appraisers do not tell a borrower what to pay, the appraiser gives an opinion of MV to lender to client for a lending decision. So a buyer can pay whatever they want, regardless of appraiser opinion. A buyer who offers the high price should have the funds to close a gap between OMV and their price. If they do not have the funds or do not want to spend them, that is a RE agent or parties problem, not the appraiser's problem.

But folks either want to blame the appraiser for "killing" the deal, or pressure the appraiser to "make " the deal. Appraisers are neither in the deal killing business nor in the deal making business. They are supposed to be in the neutral party opinion of market value business.

Make whatever statement you want about difference between SC price and opinion of market value. I gave an example - but my actual statements can vary each time. Everyone needs to make your own statement you believe in and are comfortable with. It is your appraisal after all.

 

[Terrel L. Shields]

Asking an appraiser to jump through hoops to explain why their market value does not equal contract price is the ultimate example of stupid irony. Isn't that exactly the reason appraisals are ordered? Note--that is a rhetorical question.

SMH

Being the sort of guy I am if asked that I would be short and blunt, "It's because the most comparable property suggests your property asking price is too ******** high." That's all I would say.

 

[Terrel L. Shields]

What do you say when your client asks why your market value estimate differs from the contract price?

See post above

 

[alebrewer]

See, I have a different take. Part of the contract and listing history analysis includes, IMO, an analysis of why the contracted price and the EMV do not jive. It's just lazy not to address it in the first place. It's also a bit shortsighted - you know your client is going to want to see that analysis. Why not head off the revision request before it ever is one?

 

[residentialguy]

See, I have a different take. Part of the contract and listing history analysis includes, IMO, an analysis of why the contracted price and the EMV do not jive. It's just lazy not to address it in the first place. It's also a bit shortsighted - you know your client is going to want to see that analysis. Why not head off the revision request before it ever is one?

Exactly. Appraisers are required to analyze and verify the sales. Analyze means to find out what exactly influenced that sale to sell for that amount. You need to talk to the parties and find out why the buyer paid that much and why the seller sold for that much. Did the buyer have a special interest in that house over others? Why did the seller want to sell... or did he have to sell? These are the kind of questions you need to find out.

 

[Terrel L. Shields]

Why not head off the revision request before it ever is one?

Since I don't know the motivations of the agent that over-listed it, nor the motivations of the buyer who is willing to over-pay, what can you say except the comps do not support the list price slash offering price.

 

[residentialguy]

The RE agent "comps" they give me are typically superior properties that sold for more high $- supposed to justify the high sale price for an inferior subject. The last one -the RE agent gave me 5 sales , - the subject was a 15 year old avg upgraded house,...4 of the 5 sales she gave me were C 1 , brand new, very upgraded brand new houses.

That's why I liked Realtors to give me their comps to justify the price.
1. I mentioned them in the report so that they have nothing on an ROV to shoot at me
2. Shows that the buyer/ seller were misinformed, Hence why they were willing to pay a higher price and why my omv was lower.