even locate my office that has been in the same location for 20 years, I think that the appraiser might not be the best source of value. When I am asked by an appraiser to give them the comps, it makes me wonder why they are getting paid.
Unfortunately in Big Bear we have some appraisers traveling 2-3 hours to do an appraisal in an area that they are geographically incompetent. There are some very knowledgeable local appraisers that are not getting these assignments due to the HVCC regulations requiring an AMC. Tyler Wood sold over 90 homes in this market area last year, and I believe his ability to evaluate market value exceeds even the best appraisers we have available. When I get a call from an appraiser that can't (cont)
DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.
Implicit in this definition is the consummation of a sale as of a specified date and the
passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market;
@AppraiserMI That's fine. But, appraisals are still opinion. It says right on the appraisal, "In my opinion, the value of this property is XXX." And this opinion is only as good/reliable as the knowledge, experience, and competence of the appraiser. I had a property sell recently for $200,000 with tow separate appraisals, one at $165k and another at $190k. That $25k, nearly 10% difference on the same property. Absurd! My point still remains.
@AppraiserMI The assumption is that a buyer who is paying more than appraisal value is not educated on the market or have some way being pushed or tricked into paying more. That does happen. I would also contend that many times the value is there, but the comps to justify it from an appraisal standpoint don't exist. Just because comps don't exist to justify it does not mean the value isn't there.
(4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements
comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
If a purchaser puts an offer in on a property where there is undue stimulus or they are not educated, then technically, that offer may not represent market value.
"WTF is bank value?" - Unfortunately with video, it is what it is. I don't edit these. My point was not the term "bank value," but rather how banks/lenders/appraisers go about determining the value. They are restricted by the Guidelines - size restrictions, location or proximity restrictions, year built restrictions, etc. All of these things limit what comps they can pull and what value they can justify. And just because they cannot find comps does not mean a
Yes- mine. I'm certified in two states, I have hundreds, if not thousands of hours of training, I typically work seven-days-a week making a living through appraising, 3,000+ hours a year for a decade. I'm honest, smart, and hard-working.
Appraisal is an opinion, but that doesn't mean that just anyone's opinion has authority.
I agree that there are some bad appraisers out there, but agents are not qualified to perform valuation.
@llahnod1 The point still remains, appraisals are opinion, and they are only as good as the knowledge and competence of the appraiser. Also, real estate agents are just as qualified, if not more, to determine market value. They generally have a better pulse on the market. Sorry, but I don't agree that appraisers are always the best source for market value.
I guess we differ on what market value means. I think it means what a buyer is ready and willing to spend, not what an appraiser can find comps to support. Again, valuation from what perspective? Yours? There's a lot of ways to value a property. Sorry, but we get way too many appraisers in our area who have no clue about what they are appraiser. As in most fields, just because someone has a license to do something does not make them qualified. That's my point.
FNMA requires that appraisals are at "Market Value". The FNMA definition is in every 1004 form I've ever completed.
I've never heard of "Bank Value" in all the years I've been apparising. In my experiance, many agents think they know valuation. Unless they are licenced appraisers as well, they do not.
I know some very good real estate agents. I respect them, and I don't claim to have knowledge about their field, as they are the experts.
even locate my office that has been in the same location for 20 years, I think that the appraiser might not be the best source of value. When I am asked by an appraiser to give them the comps, it makes me wonder why they are getting paid.
slhoo7 1 month ago
Unfortunately in Big Bear we have some appraisers traveling 2-3 hours to do an appraisal in an area that they are geographically incompetent. There are some very knowledgeable local appraisers that are not getting these assignments due to the HVCC regulations requiring an AMC. Tyler Wood sold over 90 homes in this market area last year, and I believe his ability to evaluate market value exceeds even the best appraisers we have available. When I get a call from an appraiser that can't (cont)
slhoo7 1 month ago
DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.
AppraiserMI 1 month ago
Implicit in this definition is the consummation of a sale as of a specified date and the
passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market;
AppraiserMI 1 month ago
@AppraiserMI That's fine. But, appraisals are still opinion. It says right on the appraisal, "In my opinion, the value of this property is XXX." And this opinion is only as good/reliable as the knowledge, experience, and competence of the appraiser. I had a property sell recently for $200,000 with tow separate appraisals, one at $165k and another at $190k. That $25k, nearly 10% difference on the same property. Absurd! My point still remains.
whowood1 1 month ago
@AppraiserMI The assumption is that a buyer who is paying more than appraisal value is not educated on the market or have some way being pushed or tricked into paying more. That does happen. I would also contend that many times the value is there, but the comps to justify it from an appraisal standpoint don't exist. Just because comps don't exist to justify it does not mean the value isn't there.
whowood1 1 month ago
(4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements
comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
AppraiserMI 1 month ago
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AppraiserMI 1 month ago
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AppraiserMI 1 month ago
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AppraiserMI 1 month ago
If a purchaser puts an offer in on a property where there is undue stimulus or they are not educated, then technically, that offer may not represent market value.
W T F is bank value?
AppraiserMI 1 month ago
@AppraiserMI True.
"WTF is bank value?" - Unfortunately with video, it is what it is. I don't edit these. My point was not the term "bank value," but rather how banks/lenders/appraisers go about determining the value. They are restricted by the Guidelines - size restrictions, location or proximity restrictions, year built restrictions, etc. All of these things limit what comps they can pull and what value they can justify. And just because they cannot find comps does not mean a
whowood1 1 month ago
@AppraiserMI cont..... property isn't worth what the buyer and seller agreed to.
whowood1 1 month ago
You ask "valuation from what perspective? Yours?"
Yes- mine. I'm certified in two states, I have hundreds, if not thousands of hours of training, I typically work seven-days-a week making a living through appraising, 3,000+ hours a year for a decade. I'm honest, smart, and hard-working.
Appraisal is an opinion, but that doesn't mean that just anyone's opinion has authority.
I agree that there are some bad appraisers out there, but agents are not qualified to perform valuation.
llahnod1 2 months ago
Comment removed
llahnod1 2 months ago
@llahnod1 The point still remains, appraisals are opinion, and they are only as good as the knowledge and competence of the appraiser. Also, real estate agents are just as qualified, if not more, to determine market value. They generally have a better pulse on the market. Sorry, but I don't agree that appraisers are always the best source for market value.
whowood1 2 months ago
I guess we differ on what market value means. I think it means what a buyer is ready and willing to spend, not what an appraiser can find comps to support. Again, valuation from what perspective? Yours? There's a lot of ways to value a property. Sorry, but we get way too many appraisers in our area who have no clue about what they are appraiser. As in most fields, just because someone has a license to do something does not make them qualified. That's my point.
whowood1 2 months ago
FNMA requires that appraisals are at "Market Value". The FNMA definition is in every 1004 form I've ever completed.
I've never heard of "Bank Value" in all the years I've been apparising. In my experiance, many agents think they know valuation. Unless they are licenced appraisers as well, they do not.
I know some very good real estate agents. I respect them, and I don't claim to have knowledge about their field, as they are the experts.
llahnod1 2 months ago