Seller/Buyer Motivation

[ZZGAMAZZ]

The subject is a straight-up 30-year-old SFR in C3 condition located in a small PUD in a neighborhood with relatively few similar, competing PUDs. [relatively few comps within 24 months].

--FHA appraisal inspection revealed no issues of deferred physical maintenance, nor any adverse conditions.
--Opinion of Value will be about 5%, or $25,000, above the offer.
--Seller Counter Offer describes "institutional sale of property the seller never lived in," and that "seller will not make any mandatory lender repairs."

--Should the appraiser simply opine the value and move on, or try to determine the basis of the variance between selling price and OV, i.e., seller motivation/buyer motivation???
--Because 95% of every AMC assignment describes the Listing Agent as contacyt person, should the appraiser try to obtain contact info for Selling Agent to determine buyer motivation?

Don't want to exceed peer due diligence but don't want to overlook any critical info.

 

[J Grant]

Need not overthink it, - write " The opinion of MV is above the sale contract price due to what appears to be seller motivation, since it is reported that the transaction is an institutional sale that the seller never lived in. The appraisal market value opinion was developed using the most similar comparable sales."

THE END.

 

[Elliott]

So the Sales Price is $500,000? And your opinion of value is $525,000? I don't know what an institutional sale is, but if you want to say a few words about the difference, I'm sure the report Reader at FHA will appreciate that. Move on.

 

[glenn walker]

Complete it on the 3.6 and attach
a full thesis on how studies have shown how buyer's and sellers motivations and even personal circumstances like depression and divorces can be problematic in determining final market values.

The invoice should be increased by a minimum of $300 reflecting the hours of additional work to learn the 3.6 and writing the thesis which your using in gaining your Master's Degree from the Saint Thomas Off Shore University of Calculated Valuation Solutions.

 

[Terrel L. Shields]

What motivates buyers and sellers is a chimera - an unrealistic expectation that we cannot actually quantify. Dream on. Chimera: a thing which is hoped for but is illusory or impossible to achieve

 

[glenn walker]

What motivates buyers and sellers is a chimera - an unrealistic expectation that we cannot actually quantify. Dream on. Chimera: a thing which is hoped for but is illusory or impossible to achieve

ZZZ Should recommend that Fannie Mae create a drop down menu in 3.6 to report motivations and analysis of what effect the appraiser thinks it has on his FOV.

 

[Tom D]

When i was broker it was some hot button that motivated the buyer to pay whatever. A lot of appraising thought has nothing to do with tbe way buyers think.

Lenders only care if value is below sale price. You don't need to explain a higher value, since the lender only cares about the sale price being there.

 

[J Grant]

If the market value opinion is above the SC price we should make a comment - to CYA if nothing else. Since lenders can get audited as well, they might ask for a comment if the value is above the SC price. Imo its worth the effort to be proactive in case the appraisal is ever reviewed .

 

[J Grant]

Real-world buyers and sellers can make emotion-driven or investment flip or herd-driven decisions. The appraiser is supposed to take that into account when looking at the data.

The appraiser is also supposed to use the MV definition of buyer and seller motivation to vet their own value opinion as well as sale prices, which is why an appraisal market value opinion can be higher or lower than an SC price or desired refi target.

 

[sputnam]

Your assignment is to develop and report a supported opinion of value for the subject property. That's it. It's none of your business whether the Seller makes repairs or not. Your Client will determine whether they want an as is value or a subject to repairs value... or both. Not you. Not the Seller. Not the Buyer. Not Realtors.