Purchase

[2020]

I received an 1004 conventional purchase order and there is no agreed purchase price on the purchase agreement. The buyer advised they are waiting on the appraisal to set a contract price. Should I just note this as described? I have never received a purchase order without a purchase price.

 

[J Grant]

Yes, note as described and proceed with the appraisal.

 

[Mark K]

Not a big deal. Do the appraisal, note that you were not provided a purchase agreement, and move on.

Not really that different from doing a refi appraisal.

 

[djd09]

just in case if something goes wrong...you are going to let a state board decide if you were within or outside the normal course of business...good luck with that

 

[Mark K]

just in case if something goes wrong...you are going to let a state board decide if you were within or outside the normal course of business...good luck with that

That holds true for any report. No contract is (or should be) a non-issue. If an appraiser can't complete a report due to lack of a purchase contract (bullseye), he should find other work.

 

[djd09]

USPAP is pretty clear about purchase agreements...

 

[Surf Cat]

That holds true for any report. No contract is (or should be) a non-issue. If an appraiser can't complete a report due to lack of a purchase contract (bullseye), he should find other work.

I agree with this. However, usually when there's no executed contract, there's typically "a number".... an agreement of sorts between the buyer and the seller.

There's no number here...

The buyer advised they are waiting on the appraisal to set a contract price.

Wouldn't this be a pre-listing appraisal?

Robot dude has a point. As much as he slams USPAP.....

USPAP is pretty clear about purchase agreements...

According to USPAP, appraisers are required to analyze all agreements of sale, including purchase agreements, to ensure compliance with professional standards.

And....

It is recommended that appraisers review the purchase agreement after forming a preliminary value opinion to avoid bias towards the contract price.

What purchase agreement? What contract price? There is none....

This is like a sly, two for one assignment.

 

[djd09]

I agree with this. However, usually when there's no executed contract, there's typically "a number".... an agreement of sorts between the buyer and the seller.

There's no number here...

Wouldn't this be a pre-listing appraisal?

Robot dude has a point. As much as he slams USPAP.....


According to USPAP, appraisers are required to analyze all agreements of sale, including purchase agreements, to ensure compliance with professional standards.

And....

It is recommended that appraisers review the purchase agreement after forming a preliminary value opinion to avoid bias towards the contract price.

What purchase agreement? What contract price? There is none....

This is like a sly, two for one assignment.

without a number there is no agreement...USPAP was usurped by the NAR too

 

[Terrel L. Shields]

Another issue. If the bank is supposed to be the client and the bank is supposed to be the sole intended user by bank regulation, then are the borrowers or the bank now including the buyers as intended users? I would make sure to write a long and explicit explanation why I was not going to be responsible for setting a price, that I would evoke privity and disclaim any responsibility to the borrower, buyer, or seller.

 

[Surf Cat]

I have never received a purchase order without a purchase price.

Was the subject property listed on the MLS?