Incomplete purchase contract provided

[censeoandrew]

I recently completed an appraisal for an AMC. The AMC provided me a fully executed contract with included a couple counteroffers, the last of which indicated an agreed upon price of $725k. My appraisal happened to match the contract price of $725k. The agent calls me a week later as he obtained a copy of my report and indicated to me that the final contract price was actually $740k, ie there was a 3rd counteroffer that I was never provided for review. Apparently behind the scenes, the buyers and sellers are arguing over the value based upon my appraised value of $725 vs the final contract price of $740k of which I was not informed of at the time I completed my report. I've got lender's and agents contacting me with questions however I don't want to speak with anyone that I am not supposed to speak with outside of my lender/client. So the question is if I am provided with this final counter of $740k by my client, can I change the appraised value based upon this new information if I feel that this new value is still supported in my report without violating appraisal guidelines, USPAP, etc. I can see buyers and/or sellers being upset and want to avoid any liability on my part, ie I want to make sure I handle this by the book. Thank's for any guidance and assistance provided.

 

[CANative]

It's a drag about the coincidence on the $725. Now you look malleable.

If it were me I'd stick to the $725 because, according to you, it was just a coincidence and that was your real opinion.

 

[Deleted member 77547]

You are appraising the property, not the contract price. If your value of $725k was supported, then that's what it is. If they want the home the buyers can a) bring the difference to the closing table, or 2) have the bank get another appraisal.

Would not your liability increase if you simply change the final value opinion to meet the $740 contract price? Would that not come across as your advocating?

 

[censeoandrew]

Good point Obsolescent, thank you.

 

[NORTON]

ask them if they came back with a 710k counter, would u also be expected to lower the opinion of value?

 

[J Grant]

You are in a bad position, whch is what happens when people appraise to match contract prices, which it seems you did the first time out as you are offering no reasons your value was 725k, other than it "happened" to be the same as the SC price. What were the unadjusted prices of your comps, and the adjusted prices? What are the listings? Why wasn't it 740k the first time, or 730k?

Probably best not to change it unless the value was off the first time, (unless they provide you, or you find, closed sales or pendings that support the new price, but more important, do you feel the value should be 740k, or the 725k ? Would you consider changing it just as easily to 710k? Where is the best support for what value, and why?)

A good lesson in future to come out with your own opinion of value no matter what the SC is, and only reconcile to SC price if it is extremely close . We can opine values that are over, under, and that match SC prices, but they should be the values that after all the research are the best supported value, that way they are defensible.

 

[CANative]

You are in a bad position, whch is what happens when people appraise to match contract prices, which it seems you did the first time out as you are offering no reasons your value was 725k, other than it "happened" to be the same as the SC price. What were the unadjusted prices of your comps, and the adjusted prices? What are the listings? Why wasn't it 740k the first time, or 730k?

Probably best not to change it unless the value was off the first time, (unless they provide you, or you find, closed sales or pendings that support the new price, but more important, do you feel the value should be 740k, or the 725k ? Would you consider changing it just as easily to 710k? Where is the best support for what value, and why?)

A good lesson in future to come out with your own opinion of value no matter what the SC is, and only reconcile to SC price if it is extremely close . We can opine values that are over, under, and that match SC prices, but they should be the values that after all the research are the best supported value, that way they are defensible.

What's wrong with you?

 

[J Grant]

?? What kind of question is that and how does asking it help the OP?

 

[CANative]

Your statment:

You are in a bad position, whch is what happens when people appraise to match contract prices,

The OPs statement:

My appraisal happened to match the contract price of $725k.

My bold.

You then proceed to grill the OP and ask for the proofs based on your unsupported hypothesis that the OP appraised to the contract.

And then you close with a very condescending lecture.

 

[Terrel L. Shields]

Don't hear me, I can shout...

Yes, I would simply say the report is over.

Recently had a builder borrowing money from a bank. Short term construction loan. The sales in the same subdivision were supporting a value of $141K...the highest sale was a sl. larger GLA. and sold for $144,900. A smaller one sold for $136,000 and one very similar to the subject sold for $140K...all within 4 months. After the report was submitted I got a copy of an FHA "Pre-sold" contract for $149,500 they wanted me to comment on.

I said, "post-report" contracts are meaningless to me and I cannot justify the price of $149,500 considering that is $5000 more than the previous high sale in the neighborhood of a new home by the same builder. What "special" items are in the sale? I did not see any. And I would presume that as a pre-qualified borrower in FHA, someone (the builder) is going to kick back 3½% towards closing, etc. etc.