Scope Of Report

[Fred]

Now what a minute you hair-splitting linguists :lol: I am with C Ledet on this one.

1. “You never DETERMINE market value.”
From Merriam-Webster: “determine…to find out or come to a decision about by investigation, reasoning, or calculation”

2. “…an ESTIMATE is a fact”
Huh? An estimate is a conclusion based on facts (and other information). Facts and estimates are at opposite ends of the logical assembly line. Facts are part of the inputs and your final estimate is the output. Also USPAP most certainly has never defined an estimate is a fact.

From Merriam-Webster
"estimate...to judge tentatively or approximately the value, worth, or significance of
to determine roughly the size, extent, or nature of
to produce a statement of the approximate cost of
judge, conclude"

As I recall, the definition section of USPAP says it doesn't matter what you call it, the rules and standards still apply.

 

[Mike Garrett RAA]

Can't we all just "get along"??? I will go with "estimate" BECAUSE if you read the URAR form under reconciliation it says:

"The purpose of this appraisal is to ESTIMATE the market value of the real property that is the subject of this report, based on the above conditions and the certification, contingent and limiting conditions, and market value definition that is stated in the attached Freddie Mac Form 439/FNMA form1004B (revised 6/93).

So there! :rofl: :rofl: :rofl:

 

[Don Clark]

Mike,

Just my 2 cents worth. The term "Estimate" was eliminated by the 1999 version of USPAP and changed to "opinion". Our reports must conform to USPAP, not a pre printed form by Fannie Mae or anyone else. Since 1999 I have included a statement in all my reports that says "The term estimate is herby changed to mean opinion of value as required by USPAP".

That is not taking a word apart peice by peice but simply trying to conform to USPAP.

Also, it is easier to defend an opinion. It is what you believe is correct, and not as exact as an estimate. I estimate repair cost so I can form an opinion of a cost to cure for depreciation as an example. My opinion is based on not just the estimate I have made, but also includes an opinion as to whether or not such cost to cure will equal the same return in market value, if performed. As an example, I may estimate $10,000 in repair cost but opine that the market will only support $8,000 as a return in market value.

I actually like the term opinion much better than estimate. I cannot as easily be challenged as an estimate as it is "my opinion". not a statement of fact.

Don

 

[Fred]

Mike,
I agree with your Rodney King. When USPAP said "estimate" 1986-1999, I don't recall anyone making an issue when folks said "opinion."

I believe the reason the ASB made the change was for "consistency." FIRREA says "an appraisal is a written opinion."

Don Clark,
Been a while, buddy. I agree that estimate sounds more accurate or reliable, but couldn't we just let it go that USPAP is the "minimum." So, even though an opinion is all that is required, you can do a little more scope of work.

Did you hear the one about the appraiser who became a plumber. He kept giving the potential clients written opinions instead of written estimates.