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Old 10-30-2009, 06:29 PM
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Lobo Fan Lobo Fan is offline
 
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Default Contract date vs closing date

I am making time adjustments based upon the contract date for the first time. If I am dealing with a purchase, do I adjust to the effective date or the contract date of the subject?
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Old 10-30-2009, 06:36 PM
Randolph Kinney Randolph Kinney is offline
 
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Originally Posted by Lobo Fan View Post
I am making time adjustments based upon the contract date for the first time. If I am dealing with a purchase, do I adjust to the effective date or the contract date of the subject?
You adjust to the effective of the appraisal.
  #3  
Old 10-30-2009, 07:11 PM
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Fannie
Announcement 09-19 June 08, 2009
06/08/09 selling guide revision/update

Time Adjustments on the Appraisal Report
Announcement 08-30 clarified that time adjustments may be either positive or negative.

It also stated the adjustments must reflect the difference in market conditions between the date of sale of the comparable and the effective date of the appraisal for the subject property.

The term “date of sale” was used in lieu of “contract date.” The correct terminology as stated in the Selling Guide is “contract date.”
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Old 10-30-2009, 07:21 PM
Randolph Kinney Randolph Kinney is offline
 
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Announcement 08-30 clarified that time adjustments may be either positive or negative.
Is that so? Fannie will allow positive time adjustments?

How about lenders?
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Old 10-31-2009, 09:50 PM
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Mike Garrett, RAA Mike Garrett, RAA is offline
 
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Fannie, Freddie, FHA, and VA have always allowed both positive and negative time adjustments.

Common sense would say....adjust from the time the sales price was established, ie., date of contract to the effective date of the appraisal.

Some lenders balk at positive time adjustments...their problem. The market is what the market is and we report the market. If the market is going up at, say, 6% per year and your comps are 3 or 4 months old than those should be time adjusted. One simple solution to the problem is using VERY current comparable sales. By doing so you may eliminate the need for a time adjustment either negative or positive.
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Old 11-01-2009, 07:46 PM
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Despite all of the misleading statistics related to market condition and the precision that many practitioners attempt to apply this data, keep in mind that whatever date you choose to apply, part of the verification process would include an inquiry as to any price adjustments that may have occurred subsequent to the reported contract date.

In today's environment it is not uncommon for there to be price adjustments between the initial contract date and the ultimate closing that may not be reflected in the MLS reocrds.
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Old 11-01-2009, 09:29 PM
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unless it is 3 plus months difference between the contract and close (i don't recall many going past 30 day..) i ain't that good. I.e.- I cannot track time changes on an hourly or daily basis. Monthly is suspect, rarely straight line, and quarterly is as precise as I believe the market will bear. It's like trying to measure wave heights with a micrometer.
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