Sale date of comp after effective date by 1 day

[TJSum]

Wouldn't it just be easier to use as a fourth contract comp (with the entire story in narrative). That way you are using the data, and using it properly with no guidelines ignored, without making another trip out to the property. Whats not to like, no one is accepting only three comps these days anyway...

 

[Charles Knutson]

Webbed --

You are probably correct -- but this is an opportunity to ask a question I've been thinking about lately.

When I took Real Estate Law many years ago, the instructor (a lawyer and long time co-chair of the Colorado Real Estate Comisssion Contract Review Committee) said that in Real Estate Contract Law, if the pre-printed form says one thing and the typed-in contract says another, the typed in statements take precedence; likewise, handwritten revisions on a contract have more legal weight than typed in clauses. (In Colorado, RE Brokers are licensed to practice law, within the confines of listing, buying, and selling real estate, so long as they use the Standard and Approved CREC forms -- and there are very few escrow closings here.)

So, the question -- if an appraiser adds a comment to a report that contradicts the pre-printed limiting conditions and certifications, doesn't that comment take legal precedence? While it may violate USPAP, will an appraiser's modification (or contradiction) of a limiting condition or certification take precedence in a court of law? Or does contradicting a limiting condition or certification in a Fannie Mae form only violate Fannie Mae regs? Is the problem with this the 2005 revised forms, or is it USPAP?

What do others think about this?

 

[38Scarcello]

The effective date is the effective date, that is why it is called that. If you start using things that have taken place after that, then they should be able to hold you responsible for everything that has taken place after the effective date, not just the things you wish to pick and choose. Use it as a fourth comp as Under Contract on the grid, then below the grid, you can tell the reader that it did actually settle the day after with known sales price, closing help, you name it. Use it, but be honest, follow the guidelines and all is well.

My vote goes to TJ on this one.

 

[Mztk1]

Fourth comp, unless you go back out and reinspect the subject.

 

[Mike Kennedy]

Bingo.

OK to Use, but since it closed after effective date of report it needs to be shown as Pending Sale on Grid showing original Listing Price adjusted to show Final Selling Price, than explained in Summary of Sales Comparison Approach and commented on in Reconcilaition as needed. Just my Thoughts, Robert G.

If truly comparable, Use as Comp 1 of 4 (most recent).....cite closing data, and confirm closing as of the report date.

 

[Kevin Mc]

You can't get more recent than 1 day after the effective date. Crazy are the naysayers!

Nuff said.

 

[Joyce Potts]

The fact that this is even a discussion is frightening.

 

[Lawrence R.]

The effective date is the effective date, that is why it is called that. If you start using things that have taken place after that, then they should be able to hold you responsible for everything that has taken place after the effective date, not just the things you wish to pick and choose. Use it as a fourth comp as Under Contract on the grid, then below the grid, you can tell the reader that it did actually settle the day after with known sales price, closing help, you name it. Use it, but be honest, follow the guidelines and all is well.

Ever used a sale after the effective date of a retroactive appraisal? What is the difference?

Is the recent sale the best indicator of value? What argument would you make for not using it if your answer was yes?

Edited to add:

Ever been reviewed and had a reviewer include a comp that hadn't closed as of the Effective date of your report?

Ever done that on a a review?

 

[Tim Schneider]

The fact that this is even a discussion is frightening.

Please explain why you think that.

 

[Joyce Potts]

Please explain why you think that.

It's not solely about the closed sales. It never really was. By now everyone should have a pretty good idea as how how effective Fannie guidelines are.

It's about ALL THE MARKET DATA. It always has been.

If it was a pending sale and the meeting of the minds took place as of the effective date of your appraisal, why wouldn't you consider it as either a primary or secondary piece of market information?