1. Welcome to AppraisersForum.com, the premiere online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Well I Never!

Discussion in 'General Appraisal Discussion' started by jeff samolinski, Nov 26, 2003.

Thread Status:
Not open for further replies.
  1. jeff samolinski

    jeff samolinski Senior Member

    0
    Apr 18, 2003
    Just finished an FHA quad design townhouse with sales contract of $92,900. Estimated value $90,000 cause highest sale in development was $85,000 which was not updated like subject. Had to use comps outside development that had newer actual age but similar effective due to subject updating. Agonized for full day about whether to use comps that the little voice in my head was teeling me were in superior developments to make it work but finally could not justify it since I felt I had stretched value already.

    So finished report and sent out and got ready for the nasty calls. OHH also, client is at this time the only local mortgage broker I will accept non COD orders from since we just worked out a deal for me to be paid each week for work completed. Had been working for one of the loan officers for this broker for over a year and found him to be reasonably honest and he always collected appraisal fee up front and did not apply much pressure for a value. Well of course the first week I get a bunch of whacked out orders from the other crony loan officers and have to bust a few deals after the inspection due to below average maintenance etc...

    Owner of brokerage is now giving me the line that he never had this happen before but having been around awhile I am thinking right that's why all of a sudden you want all of your loan officers to use me. I don't think that happened because they suddenly came to the realization that I am the best appraiser around here, I think what happened was they pissed off the appraiser they were using or that appraiser blew a few too many deals and they are now going to use me cause they think they can sucker me into not blowing deals just to get their business.

    That being said, i get a call yesterday from the mortgage broker owner who is all happy and says can you change your report to reflect the new contract price of $90,000. Will wonders never cease but I am not so dumb to think that the sh-t would not have hit the fan if the seller had refused to lower the price. I think this is the first time that I have blown a sales contract and not been beat up over it. My DR. JEKYL side is way dominant now but MR. HYDE lurks close by.

    Chaulk one up for the never reported stats saying that appraisers hit the sales price 90+% of the time or more! I wonder what I would have done if the slow down had continued? I wonder whether I will hold my ground next time? I wonder what I would have done if my house wasn't paid for or if my financial situation was not as good as it is? I just wonder sometimes.
     
  2. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    4
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    Hurray! A good story is so refreshing and so very rare.

    Now as to changing the contract/sale price on the appraisal.... NO. But, do an addendum addition to the appraisal that explains the change in the contract price. Unless there is an error on MY part, I will never change anything in the originally delivered appraisal report. Besides, the new contract with the changed price is AFTER the effective date of the appraisal.
     
  3. Travis McGee

    Travis McGee Senior Member

    0
    Sep 18, 2004
    Personally, I don't see anything wrong with chaning the contract price. We are apraisaing the house, not the contract, and are not changign any material facts about the house. It seems if there is an updated signed date, which reflects when contract price changed, it doesn't affect the effective date, when you inspected property. That is my opinion, I don't know what if anything, USPAP says, or if it's even covered.
     
  4. Jungle Boy

    Jungle Boy Senior Member

    0
    Oct 30, 2002
    Professional Status:
    Real Estate Agent or Broker
    State:
    Florida
    Sometimes common sense rules ! :D

    All kidding aside, this seems to make sense to me. :)

    (3 sense worth :rolleyes: )
     
  5. Bill_FL

    Bill_FL Senior Member

    0
    Aug 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    In this case, common sense looses.

    We had this discussion here awhile back, and that thread went on for 5-6 pages. I finally contacted the ASB and asked for clarification of this exact scenario.

    A new contract price = a new assignment.
     
  6. The Matrix

    The Matrix Senior Member

    0
    Apr 28, 2003
    Professional Status:
    Certified General Appraiser
    State:
    Colorado
    If the highest prior sale in the subject's complex was $ 85,000 /not renovated and you appraised a similar unit for $90,000/renovated. I would wonder what was the second highest prior sale price in the subject's complex.
     
  7. jeff samolinski

    jeff samolinski Senior Member

    0
    Apr 18, 2003
    No other recent sales in subject development.

    Since subject is close to me I will do drive-by and change effective date of report and disclose original sales price all at no additional charge- Yeah I know call me a sucker for no additional fee!!! I'm in a good mood today!!!
     
Thread Status:
Not open for further replies.

Share This Page