Real Estate Appraisal Forum logo
The Premiere Online Community for Real Estate Appraisers!
 Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
Go Back   Appraisers Forum > Real Estate Appraisal Forums > Fannie Mae, Freddie Mac, USPAP
Register Help Our Rules Calendar Archives Mark Forums Read

Closed Thread
Thread Tools
Old 09-14-2009, 03:09 PM
appraisalaska appraisalaska is offline
Join Date: Nov 2007
State: Alaska
Professional Status: Certified Residential Appraiser
Posts: 59
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?
Sponsored Links

Old 09-14-2009, 03:22 PM
TimberRidge TimberRidge is offline
Join Date: Aug 2008
State: Ohio
Professional Status: Certified Residential Appraiser
Posts: 119

Um, a sales contract (or changes to one) should have absolutely nothing to do with the final estimate of value.

Prepare to be flamed
Old 09-14-2009, 03:23 PM
Mike Kennedy's Avatar
Mike Kennedy Mike Kennedy is offline
Join Date: Sep 2003
Location: Southern Hudson Valley
State: New York
Professional Status: Certified Residential Appraiser
Posts: 28,182

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.
Kill the Contract Review Bull$eye - Now.

Last edited by Mike Kennedy : 09-14-2009 at 03:30 PM.
Old 09-14-2009, 03:27 PM
George Hatch's Avatar
George Hatch George Hatch is offline
Join Date: Jan 2002
Location: Carlsbad, California
State: California
Professional Status: Certified General Appraiser
Posts: 16,783

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.
Old 09-14-2009, 03:38 PM
Farm Gal's Avatar
Farm Gal Farm Gal is offline
Join Date: Jan 2002
Location: Currently: Midwest
State: Nebraska
Professional Status: Licensed Appraiser
Posts: 10,076

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?
Live in such a way that you would not be ashamed to sell your parrot to the town gossip ~Will Rogers
Old 09-14-2009, 04:56 PM
Restrain Restrain is offline
Join Date: Jan 2002
Location: Port Charlotte, FL
State: Florida
Professional Status: Certified General Appraiser
Posts: 10,543

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.....
Sponsored Links

Closed Thread

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Copyright © 2000-,, All Rights Reserved
     Terms of Use  Privacy Policy is proudly hosted by the folks at

Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
Partner Sites: - National Appraiser Directory - Domain Name Registration - Deadbeat - Web Hosting for the Professional Real Estate Appraiser
Find FHA Appraisers - FHA Appraiser Search Commercial Appraisers - Commercial Appraiser Search
Relocation Appraisal - Find Relocation Appraisers Domain Reseller - Business Opportunity
Home Security Buzz - Home Security Info Radon Testing - Radon Gas Info
My Medicare Forum - Medicare Info Stop Smoking Help - Help Quitting Smoking - Great Cordless Phones - Android Tablet Computers

Follow          Find us on Facebook            Follow us on Twitter

All times are GMT -5. The time now is 09:23 AM.

SiteMap: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93