USPAP Question About Value Estimate In Relation To Recent Sale

[glenn walker]

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.

Delete I do not want to insult some commercial appraisers : )LOL

 

[Terrel L. Shields]

Delete I do not want to insult some commercial appraisers

OK...I've been insulted by the best, give my your best shot

 

[glenn walker]

OK...I've been insulted by the best, give my your best shot

Not directed at you or anyone on the forum but there are some real poor ones , remember I started out in 1983 with the Infamous Lincoln Savings and Loan and we had some real hacks including the chief MAI.Today the profession is way better but before Licensing lot's of guys used their designation to rubber stamp other guys reports. In my opinion the newer MAI say in the last 15 years are way better educated and in some cases have a higher code of ethic.

Back in those days there were some real hacks who just made up numbers and if they were questioned they simply and arrogantly stated I am the MAI so don't bother me. I often wondered if they paid for their designations because none I knew had ever been disciplined and most did not have college degrees , we had one who admitted he dropped out of high school and even after Lincoln was seized and closed by the Fed's most of these guys were simply taken in by other lenders as staff Chief Appraisers. BUT gotta admit they always hit or exceeded the numbers required to fund those developments and nothing really changed until 1992 when they had to get there Commercial State License.

 

[Elliott]

I lived with my grandparents for a number of years. They were married over 50-years, but would occassionally fight. The argument would alway end with my grandmother saying, "And You killed my dog." It happened that midway into their marriage my grandfather came home and my grandmother was having afternoon bridge with her friends and they needed a bottle of scotch. So as my grandfather came into the driveway he was given orders to go to the liquor store, without getting out of his car he put it into reverse and ran over Dagwood. Dagwood was use to the routine of my grandfather coming home from work and parking and he would run up to the door. The change in routine caused the accident. You probably all know that my grandfather loved Dagwood just as much if not more than my grandmother.

I tell this story because I find that many arguments on this board usually desolve to, "You killed my dog" or this forums version of "MAIs are to blame for everything." The OPs question was about coming in 2.5% low.

 

[Terrel L. Shields]

I lived with my grandparents for a number of years. They were married over 50-years, but would occassionally fight. The arguement would alway end with my grandmother saying, "And You killed my dog." It happened that midway into their marriage my grandfather came home and my grandmother was having afternoon bridge with her friends and they needed a bottle of scotch. So as my grandfather came into the driveway he was given orders to go to the liquor store, without getting out of his car he put it into reverse and ran over Dagwood. Dagwood was use to the routine of my grandfather coming home from work and parking and he would run up to the door. The change in routine caused the accident. You probably all know that my grandfather loved Dagwood just as much if not more than my grandmother.

I tell this story because I find that many arguments on this board usually desolve to, "You killed my dog" or this forums version of "MAIs are to blame to everything." The OPs question was about coming in 2.5% low.

Poor Dagwood, but that is funny...grandma always had a killer he couldn't answer.

 

[gregb]

The new bogeyman is the CG who refuses to take on a trainee.

 

[residentialguy]

Good comments. Appraisers often unwittingly provide an unsupported an undocumented second appraisal by providing comments like, "the last sale was an REO sale at a below market value price." This is an appraisal opinion, with value expressed as a relationship to a benchmark (the prior price).

One could provide the same info without crossing the line into providing a value opinion - e.g. "When the property last sold the seller was a lender that had acquired the home via foreclosure. The parties involved indicated a desire to sell in a short period of time with limited marketing efforts."

And what problem do you have with giving an additional appraisal opinion??? What "line" is the appraiser crossing as if something bad is going to happen to the appraiser?
REO's typically do sell below market value. OK...I just gave an opinion on millions of properties. Should I be on the lookout for black helicopters?

 

[George Hatch]

It's not a problem if you've actually developed the opinion. It is a problem if you're just pulling your opinion from thin air.

 

[residentialguy]

It's not a problem if you've actually developed the opinion. It is a problem if you're just pulling your opinion from thin air.

One only needs to see numbers to form this opinion. It's not like it's a secret.
Are you confusing an appraisal assignment which requires a workfile with an opinion of value, which does not require a workfile?



I think this is "you must have a workfile, blah, blah, blah if you state an opinion of value" the most over blown wives tale in the appraiser profession. Comp 4 appears to have sold below market value because it was an REO sale, which typically sells below market value. There is no assignment for that opinion, no client requesting this, no one to harm. No one is going to sue me and no respectable state board is going to reprimand me, as USPAP was not violated. I simply explained why that comp was not a reliable indicator of market value.

 

[J Grant]

And what problem do you have with giving an additional appraisal opinion??? What "line" is the appraiser crossing as if something bad is going to happen to the appraiser?
REO's typically do sell below market value. OK...I just gave an opinion on millions of properties. Should I be on the lookout for black helicopters?
View attachment 36755

No, but your report results could be skewed because you decided REO's "sell below market value " , which then leads you to not use them in appraisals, ( you've posted numerous times you won't use them, and if you do, you adjust them "up" to your target of market value as higher than an REO sale)...while AI, Fannie, FHA, and in my continuing ed, most recent USPAP FAQ, says if needed for credible assignment results an REO sale use as a comp. (with no rote instruction to always adjust them "up" .(.though we would adjust them up if the market data indicates )

Your opinion on millions of properties led you to take a predetermined position in a value direction (MV, higher than than any REO sale simply because it is an REO sale) in your appraisals.