Seller/Buyer Motivation

[shrubberyvaluation]

Yep. When I come in low, i. Comment. When I come in high, i Comment.

Learnt my lesson a long time ago. My appraisal was 5k over the contract price. Got rejected. The uw wanted me to Comment on as to why..

I thought it was overkill at 5k. I could see maybe 10k and definitely justified at over 20k.


Paint that picture....spend 1 minute now or 10 minutes later and a rejected report that lowers you s score.

Unless you have some information just some generic statement.

Sometimes agents will tell you things such as there were higher offers but the seller preferred this one because xyz. People have all sorts of motivations and the contract price is not the only factor with the terms of a contract.

 

[sputnam]

Unless you have some information just some generic statement.

Sometimes agents will tell you things such as there were higher offers but the seller preferred this one because xyz. People have all sorts of motivations and the contract price is not the only factor with the terms of a contract.

If an agent wants you to consider the fact that there were higher offers... then have the agent send you copies of them. Of course, they are very unlikely to do so. Higher offers wouldn't trump what they comparable sales are telling you... but, they might lead you to concluding a value closer to the upper end of the adjusted sales prices.

 

[TerryRohrer]

If an agent wants you to consider the fact that there were higher offers... then have the agent send you copies of them. Of course, they are very unlikely to do so. Higher offers wouldn't trump what they comparable sales are telling you... but, they might lead you to concluding a value closer to the upper end of the adjusted sales prices.

I have never understood the idea of weighting unacceptable offers. But, anyone doing so would have to do the same when there were lower offers too (since we are all unbiased and all). Yet, I have never seen appraisers discussing consideration of lower offers. It seems many appraisers, like plaintiffs in bias lawsuits, think higher values are always more credible. It is almost like the methodology was developed to appease clients and non-intended users to ensure future business instead of developing objective opinions of value. Some say appraiser training is inadequate, but the efficacy of appraiser conditioning seems unerring.

 

[sputnam]

I have never understood the idea of weighting unacceptable offers. But, anyone doing so would have to do the same when there were lower offers too (since we are all unbiased and all). Yet, I have never seen appraisers discussing consideration of lower offers. It seems many appraisers, like plaintiffs in bias lawsuits, think higher values are always more credible. It is almost like the methodology was developed to appease clients and non-intended users to ensure future business instead of developing objective opinions of value. Some say appraiser training is inadequate, but the efficacy of appraiser conditioning seems unerring.

Not sure why you quoted me... nothing I said was advocating for finding higher values. In the perfect world, appraisers would be given not only the purchase agreement, but also every offer. In addition we would be privy to the motivations of every Seller and every potential Buyer. Never going to happen. Which is why we rely on closed sales to support the opinion of value. It is ALWAYS, the appraiser's opinion... but it has to be an opinion that is supported by market data.

 

[Mark K]

Seems that a perfectly valid explanation for your report would be that the seller is highly motivated to sell. No big deal, it happens. Estate, divorce, relocation sales etc. often reflect unequal levels of motivation. This frequently results in a non-market value sale (per our typical definition that includes 'equally motivated buyer and seller). You are appraising to 'market value' as defined in your report and this value can often be higher than a non-market value sale.

BTW, this would make it an inappropriate comp to use in future appraisals.