J Grant
Elite Member
- Joined
- Dec 9, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Florida
The below from USPAP definitions : This relates to the prior thread, where several said we give an opinion of price or a market value opinion is a price opinion...
APPRAISAL: (noun) the act or process of developing an opinion of value; an opinion of value. (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services. Comment: An appraisal is numerically expressed as a specific amount, as a range of numbers, or as a relationship (e.g., not more than, not less than) to a previous value opinion or numerical benchmark (e.g., assessed value, collateral value). APPRAISAL PRACTICE: valuation services performed by an individual acting as an appraiser, including but not limited to appraisal and appraisal review. Comment: Appraisal practice is provided only by appraisers, while valuation services are provided by a variety of professionals and others.
MARKET VALUE: a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the value definition that is identified by the appraiser as applicable in an appraisal.
9 Comment: Appraisers are cautioned to identify the exact definition of market value, and its authority, applicable in each appraisal completed for the purpose of market value.
PRICE: the amount asked, offered, or paid for a property. Comment: Once stated, price is a fact, whether it is publicly disclosed or retained in private. Because of the financial capabilities, motivations, or special interests of a given buyer or seller, the price paid for a property may or may not have any relation to the value that might be ascribed to that property by others.
Value is defined in USPAP as follows: “The monetary relationship between properties and those who buy, sell, or use those properties.” USPAP notes that “Value expresses an economic concept. As such, it is never a fact, but always an opinion of the worth of a property at a given time in accordance with a specific opinion of value. In appraisal practice, value must always be qualified – for example, market value, liquidation value, or investment value.”
My note : USPAP on PRICE : Once stated , price is a FACT, and Value as defined by USPAP above is NEVER a fact, but always an opinion, thus there is no such thing as " an opinion of price, or a price opinion. The two are mutually exclusive per above, under USPAP for appraisal practice and appraisers
( Note for people who are not appraisers and not under USPAP, they can use any words or terminology they want about values, prices, opinions , market value, etc )
APPRAISAL: (noun) the act or process of developing an opinion of value; an opinion of value. (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services. Comment: An appraisal is numerically expressed as a specific amount, as a range of numbers, or as a relationship (e.g., not more than, not less than) to a previous value opinion or numerical benchmark (e.g., assessed value, collateral value). APPRAISAL PRACTICE: valuation services performed by an individual acting as an appraiser, including but not limited to appraisal and appraisal review. Comment: Appraisal practice is provided only by appraisers, while valuation services are provided by a variety of professionals and others.
MARKET VALUE: a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the value definition that is identified by the appraiser as applicable in an appraisal.
9 Comment: Appraisers are cautioned to identify the exact definition of market value, and its authority, applicable in each appraisal completed for the purpose of market value.
PRICE: the amount asked, offered, or paid for a property. Comment: Once stated, price is a fact, whether it is publicly disclosed or retained in private. Because of the financial capabilities, motivations, or special interests of a given buyer or seller, the price paid for a property may or may not have any relation to the value that might be ascribed to that property by others.
Value is defined in USPAP as follows: “The monetary relationship between properties and those who buy, sell, or use those properties.” USPAP notes that “Value expresses an economic concept. As such, it is never a fact, but always an opinion of the worth of a property at a given time in accordance with a specific opinion of value. In appraisal practice, value must always be qualified – for example, market value, liquidation value, or investment value.”
My note : USPAP on PRICE : Once stated , price is a FACT, and Value as defined by USPAP above is NEVER a fact, but always an opinion, thus there is no such thing as " an opinion of price, or a price opinion. The two are mutually exclusive per above, under USPAP for appraisal practice and appraisers
( Note for people who are not appraisers and not under USPAP, they can use any words or terminology they want about values, prices, opinions , market value, etc )
Once you state your "opinion" it too becomes a "fact" that's why you can be sued over your opinion, not just the development of it, but you can also be sued over the reporting of it.