Why Concessions in a Seller's Market ?

[Meandering]

Foreclosures/Shortsale occur because someone stopped paying or can not afford their Mortgage(s) payments and stop paying. Period. It happens regardless of anything else. The Subject property is worth it it is worth on a specific date. Mtg Amount has nothing to do with Market Value. Nothing!

We weren't speaking of "value"
we were speaking of analysis of the market "condition".

Short sellers are;
those that are trying to preserve their credit
when they realize they can no longer afford the mortgage, or that they are underwater and don't want to waste more of their money on that particular real estate investment.
hence, they are the "leading indicator" of a market decline, when they represent a rising percentage of sales and listings.

Foreclosures are;
what happens when short sales are not approved, or,
happens when people in financial trouble, decide to "hope and pray" instead of trying to get out, or are stuck with no way out, or,
happen because of abandonment because the "owners" ran away.

Foreclosures are the lagging indicators of a declining market
because they are the results of in-actions

Short sales are indicators of a coming declining market, or are indicators of a stabilizing market
because they are the results of actions taken to prevent being enveloped in a preconceived coming crisis, or,
a preconceived market stabilization, leaving no room for equity gain.

.

.

 

[glenn walker]

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Do peers ever include a statement such as "Although beyond the scope of work of this assignment,which is based upon the effective of the report, he client might wish to be aware that xxxxxxx poses the potential for future market declines because . . . . "{ [or is that just plain stupid to say?]

What client wants a disclaimer warning them a market has the potential to decline ?
Nobody, lenders make their money by generating loan fee's, and buyers don't want to hear any negative news. On the negative side if the market did decline or crash could a client or some crazy attorney argue that you over inflated the value and thought your CYA disclaimer would relieve you of some future liability ?

Appraisers disclaimer to Bigger Bank USA - I disclosed on Page-33 there is a potential for future market declines.

Response From Bigger Bank USA :
Mr Chicken little you have failed to adhere to our engagement letter, which clearly states that we only want the facts and no forecasting, or consulting is allowed. Our Chief Appraiser says you have created some weird scope of work which does nothing to enhance the quality of your report.

Our Chief statistician says if you want to forecast the future there has to be some data to support your disclaimer and your emotions or feelings are not data . The legal department says your disclaimer has no validity and is Null & Void because your assignment was to value the property as of the effect date. We here at Bigger Bank USA have a staff of climate scientist and they have already told us that our loan portfolio only has a 12 year life , So we are prepared for another real estate crash on, or before that date. Please kindly remove your disclaimer and let our scientists, statisticians and crystal ball readers, worry about what happens down the road.

 

[Meandering]

Appraisers disclaimer to Bigger Bank USA - I disclosed on Page-33 there is a potential for future market declines.

But did you reduce the font? All such disclaimers require micro font.

Our Chief statistician says if you want to forecast the future there has to be some data to support your disclaimer and your emotions or feelings are not data . The legal department says your disclaimer has no validity and is Null & Void because your assignment was to value the property as of the effect date. We here at Bigger Bank USA have a staff of climate scientist and they have already told us that our loan portfolio only has a 12 year life , So we are prepared for another real estate crash on, or before that date. Please kindly remove your disclaimer and let our scientists, statisticians and crystal ball readers, worry about what happens down the road.

ditto on the micro font for the rising sea disclaimer for water front properties.

 

[Tim The Enchanter]

Use micro font if you "come in low".