USPAP Question About Value Estimate In Relation To Recent Sale

[J Grant]

from URAR cert page. The cert, or similar AI statement is not whole reason to avoid saying " the sales price was supported "...but one of the reasons.

I understand parties, lenders, RE agents refer to a contract price being supported - as appraisers it is easy to let common vernacular slip into our own statements....

 

[J Grant]

duplicate

 

[Mike Kennedy]

Yes that explains why tenants often might pay a higher price...what does YMMV mean?

You May Mean Value - good question, engage me to do a retrospective appraisal and let's find out.

 

[Mike Kennedy]

Yes that explains why tenants often might pay a higher price...what does YMMV mean?

You May Mean Value - good question, engage me to do a retrospective appraisal and let's find out.

 

[TRESinc]

You can personally choose to "Buy " into it or not, but it's right there in USPAP.- a definition of an appraisal is a value opinion as a relationship to a numerical benchmark.

what weird version of USPAP do you have? that is not the definition in the 2018-2019 version.

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.

nope, no where in my copy of the current USPAP does the definition of an appraisal state it has any relationship to a numerical benchmark.


FAIL, TRY AGAIN

"Appears to be"...works for geology but for appraisals it's a weasel word unless explained such as appraiser could not get verification since nobody would respond to inquiries..

a weasel word... good lord what universe do you live in? the carpeting appears to be newer (the second it was installed it was no longer NEW carpet). the roof appears to be newer (same thing).

2.5% is pretty specific unless there was absolutely no support for the sale price. I try to give the benefit of the doubt to anything under 5%. Most of the time we simply are not that good. Its different in Resi or cookie cutter commercial where adjustments are straight-forward.

some on here think they are that good, and have told us so. shouldn't be too hard to figure out who...

 

[DWiley]

nope, no where in my copy of the current USPAP does the definition of an appraisal state it has any relationship to a numerical benchmark.

...

See Comment to definition of appraisal. Also see examples in AO 20

 

[gregb]

https://www.appraisalinstitute.org/assets/1/7/Appraisal_Review___AO_20_Controversy_6.11_1030a.pdf

 

[J Grant]

gregb the link actually mentions weasel words........

In an appraisal review, the reviewer is asked agree, or disagree, with the opinion of market value.-

The reviewer is not asked agree ,or disagree with the sales contract price. ... aka that statement the "sales contract price was supported"...

 

[Terrel L. Shields]

works for geology but for appraisals it's a weasel word

When inferring an intangible, like saying why something happened then we can quote the buyer, seller, or agent or we can make our interpretation. We cannot read someone's mind nor tell if they are lying.

 

[George Hatch]

Lots of review assignments include appraisals performed by the reviewer.