Sales Price Addendum After Appraisal Submitted

[J Grant]

Back on the topic we were discussing: Didn't your own appraisal led you to the opinion of point value ? Sure...there was a reasonable range of value that the market supported and pending sale of the subject was found to be a very good indicator of value, so the agreement of price between those typically motivated market participants led to the point value, since that sale was supported by the rest of the market, it was the actual home (not a different home in a different location) and I knew both the parties of the transaction better and the property better, plus the conditions of the sale were verified first hand by me. What price they settled on would end up being my point value. And, as shown...for very good reason.

Okay, I agree on this aspect- our own appraisal can lead us to opine at the same SC price as subject, because indeed the contract itself at a price of 186k can be an indicator of why we might conclude at 186k in adjusted range of 180-190k (for example)

However, you are still talking an awful lot about price and what the named parties are paying and why they decided to pay it. Remember, it is YOUR opinion of market value the client is paying for!! Since they know the contract price , a client does not need an appraiser to parrot it back to them. The client needs an appraiser to develop a market value opinion. Of course the client hopes the opinion comes in at, or above the SC price- yeah what else is new.

If the named parties withdraw from the deal, then what? same thing as if they change SC price...the rest of your appraisal, the sale comps and other listing activity should still support your opinion of market value of 186k.

 

[J Grant]

The appraisal is supposed to support our market value opinion, not support their SC price. And that includes when we opine at their SC price $ amount.

 

[residentialguy]

Hmmm...you don't seem to have a problem weighing on comp one or comp two. I believe they both have prices.

 

[J Grant]

Hmmm...you don't seem to have a problem weighing on comp one or comp two. I believe they both have prices.

They have CLOSED sale prices, not pending prices that can still change (or deal die and not close) . Read the certs, the value is based on SALES comparison approach, not the pending or listing comparison approach

And we vet prices relative to value whether closed or with less weight on a pending. The value aspect seems to go out the window with you at reconciliation phase when it becomes all about price.

 

[residentialguy]

They have CLOSED sale prices, not pending prices that can still change (or deal die and not close) . Read the certs, the value is based on SALES comparison approach, not the pending or listing comparison approach

Oh....so pending sales aren't part of the SCA? Hmmmm you better inform FNMA of that

Again, you keep deliberately forgetting that pesky little part where I said the whole market supports that value.

 

[residentialguy]

now back to Lee's example of where the sale contract went from 180k to 200k. Why did the buyer decide to pay an additional 20k? Buyer's don't do that without good reason. If the subject had 20k worth of repair, than the 20k opined value increase was justifiable. If they got 20k added in concessions, then the 20k opined value increase was NOT justifiable and the appraiser was rightfully punished.

 

[J Grant]

Oh....so pending sales aren't part of the SCA? Hmmmm you better inform FNMA of that

Again, you keep deliberately forgetting that pesky little part where I said the whole market supports that value.

Why not just ask me instead of inventing lies, since I do put pending sales when relevant on SCA and consider them as well as rest of market- which still leaves the cert as the SALES comparison approach.

 

[J Grant]

now back to Lee's example of where the sale contract went from 180k to 200k. Why did the buyer decide to pay an additional 20k? Buyer's don't do that without good reason. If the subject had 20k worth of repair, than the 20k opined value increase was justifiable. If they got 20k added in concessions, then the 20k opined value increase was NOT justifiable and the appraiser was rightfully punished.

Obviously if the house changed physical characteristics the value could change , but that is not the example given nor issue being discussed. Trying to backtrack much? Other posts you made support changing a MVO when a SC price has changed with no change made to the subject property.

 

[residentialguy]

I didn't lie.. you stated, and I quote

Read the certs, the value is based on SALES comparison approach, not the pending or listing comparison approach

How can one assume anything but that you are saying that Pending sales are not part of the SCA?

 

[residentialguy]

Obviously if the house changed physical characteristics the value could change , but that is not the example given nor issue being discussed. Trying to backtrack much? Other posts you made support changing a MVO when a SC price has changed with no change made to the subject property.

You hjacked my response to Lee's post. I was just trying to get back there. You mind? And since Lee didn't say why, how do you know if it is not part of that example? There has to be a reason why a buyer decided to pay 20k more after the seller agreed to sell for 20k less. Of course you don't bother to find that little detail out.