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  #1  
Old 09-14-2009, 02:09 PM
appraisalaska appraisalaska is offline
 
Join Date: Nov 2007
State: Alaska
Professional Status: Certified Residential Appraiser
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Default Clarification needed ASAP:USPAP & Sales Contracts

Its my understanding that an appraised value cannot be changed even after receiving an addendum to a sales contract which increases the value...even if the increased value falls within the original high/low end of the adjusted value range.

Its also my understanding that any change in value without new updates to the subject property or comparable analysis would reflect a predetermined value, which would then be a violation of USPAP.

Any thoughts on this one way or another?
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Old 09-14-2009, 02:22 PM
TimberRidge TimberRidge is offline
 
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State: Ohio
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Um, a sales contract (or changes to one) should have absolutely nothing to do with the final estimate of value.

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  #3  
Old 09-14-2009, 02:23 PM
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Mike Kennedy Mike Kennedy is offline
 
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Location: Southern Hudson Valley
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Receiving an addendum to a sales contract increases the reported SALE PRICE ......not necessarily VALUE unless the physical characteristics of the subject site or improvements changed. If so - new appraisal.

http://appraisersforum.com/showpost....2&postcount=36

http://appraisersforum.com/showthread.php?t=158831
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Last edited by Mike Kennedy : 09-14-2009 at 02:30 PM.
  #4  
Old 09-14-2009, 02:27 PM
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George Hatch George Hatch is offline
 
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Location: Carlsbad, California
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Your opinion as of the effective date is your opinion. The contract price as of the effective date of your assignment is a fact. You can't unbreak an egg.

That fact can be considered as a single datapoint but in no case would you allow any single datapoint to outweigh an otherwise identifiable trend. Even if that datapoint is a sales contract.

If you learned something about the subject (other than the price) or the comparables that was relevant to your opinion of value then you might have reason to change your opinion. Merely changing a contract price would only be a significant factor in your appraisal if you were arbitrarily equating that contract price to market value.
  #5  
Old 09-14-2009, 02:38 PM
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Farm Gal Farm Gal is offline
 
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State: Nebraska
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Unless the new contract materially changes the subject property and makes it subject to some conditions not present at the time of the original contract... or discloses some defect or matter of fact not previously 'known' about the property physical situation...

Pray tell how would the value of a property be modified by seller and buyer changin their minds about what each of THEM thought it was worth in price?

Hint- Analysis of financing terms may assist you in disclosing the change in contract - who failed to qualify and by how much? OR what are they 'fixing' that is non-real in nature?
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Old 09-14-2009, 03:56 PM
Restrain Restrain is offline
 
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Just put in an addenda that subsequent to the submission of the report, a contract was received changing the sales price from X to Y. The appraiser has reviewed the revised contract.....
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