Site Comp Sale Date After Effective Date

[Functional Obs]

I'm working on a report for a court case, and I've decided to develop the cost method as support for the sales comparison. The effective date of the report (date of the inspection) is 7/19. The very best site sale (though there are several others) took place 7/20. Am I going to run into a problem using this property?

 

[CGinMN]

It is the very best site sale, so it would be misleading if you didn’t use it.

 

[Zephyr999]

When did it go under contract? Meeting of minds date?

 

[Mike Kennedy]

active or contracted on the Effective Date of Appraisal??

 

[Terrel L. Shields]

I'm working on a report for a court case,

You need all comps including land comps to be pre-date of report.

 

[Russ Kitzberger]

You need all comps including land comps to be pre-date of report.

Not true anymore, that was removed from USPAP and it is common in some assignment uses to use the BEST data, not just that which closed before the effective date. See post and my responses at:

Updating a completed appraisal (errors and new sold homes)

OK, so it is an existing home built in the 90s, not a house built new this year. I was curious how they missed 400 SF. Did you measure the exterior of the house? And do you understand that a sun room, addition, enclosed porch, etc. may not count as GLA (gross living area) which is defined as...

appraisersforum.com

Am I going to run into a problem using this property?

Ask the attorney if the case law supports this or run it past your own outside counsel. There is a shift to use the best data, adjust back to the effective date; as all court cases are retrospective.

 

[Terrel L. Shields]

Not true anymore, that was removed from USPAP

I don't care what USPAP says, the judge and most all tax attorneys and CPAs will tell you to only use pre-date of report sales. This is a for a court case, not the IRS or a bank.

 

[Russ Kitzberger]

I don't care what USPAP says, the judge and most all tax attorneys and CPAs will tell you to only use pre-date of report sales. This is a for a court case, not the IRS or a bank.

Again, this used to be the case, courts are shifting. Run it past your outside counsel, they are the ones who have to litigate the case law.

 

[Carnivore]

Not true anymore, that was removed from USPAP and it is common in some assignment uses to use the BEST data, not just that which closed before the effective date. See post and my responses at:

Updating a completed appraisal (errors and new sold homes)

OK, so it is an existing home built in the 90s, not a house built new this year. I was curious how they missed 400 SF. Did you measure the exterior of the house? And do you understand that a sun room, addition, enclosed porch, etc. may not count as GLA (gross living area) which is defined as...

appraisersforum.com

Ask the attorney if the case law supports this or run it past your own outside counsel. There is a shift to use the best data, adjust back to the effective date; as all court cases are retrospective.

This is coincidental. I had a conversation recently with an attorney(personal friend) that goes to me occasionally with assignments. This topic came up and here is the short of it. Call your attorney-client first. Depending on the case he will make the call. Judges often fill in the blanks where the law or procedure may be to tight(so to speak). In MLS they show they close date, but also the time date that change was made. Occasionally the Realtor/Staff can take days to change a status. In our MLS it shows the actual date/time change in a non-public system. What is left out of MLS is when the title actually changed hands. Even when you go the Official Deed filing it can be inaccurate. The deed room log in when it is time/date submitted/accepted.

Here was his primary point; He said that he can argue or make a valid argument by narrowing the date down to actual recording time and if its contemporaneous that is a thumb hold. Something like that...But as you say IT'S The Best Data they are interested in.

In the Lending world this will not fly.

 

[Terrel L. Shields]

. Run it past your outside counsel, they are the ones who have to litigate the case law.

I do estates and I tried to use a sale 30 DAYS after the date of death and the CPA insisted it had to be pre-date of death. That's quite recent. She insisted 'it's the law"...I've never found that law, but to appease her, I drug up a much older sale. And I did a lot of LLCs for tax attorneys when the Fayetteville Shale was booming. Same thing. At least 2 firms out of Little Rock insisted all sales used were to be pre-date of incorporation.??? why I don't know. But use a post-date sale at your own peril.