Contract Price

[Zoe]

Sorry for partially duplicate post. I need to clarify. I have a 1004 conventional purchase. The contract states the buyer agrees to purchase based on appraised value and does not provide a contract price. Can I do this? Fannie Mae states I must enter a contract price?

Are you playing me? We don't do MV appraisal on price. Your playing me.

 

[Mike Ault]

The purpose is an opinion of the market value in all these assignments. The purpose of the first appraisal was not to determine a sale price for the subject. Read what it sayson the URAR first page -

The purpose of an appraisal is different than the intended use. But in both cases, the intended use ( see the certs ) is to evaluate the subject property for lending.

That's why you should use different certifications for the first appraisal report when submitted on the URAR. No problems there because you don't intend to generate an XML file with that first submission. "Purpose" and "intended use" are interchangeable terms. How many assignments have you completed for divorce, estate, purchase evaluations, pre-listing purposes, etc. on the URAR prior to the widespread adoption of GP forms? Should we all turn ourselves in to the USPAP & Fannie Mae police for that?

 

[Zoe]

 

[Zoe]

Sorry for partially duplicate post. I need to clarify. I have a 1004 conventional purchase. The contract states the buyer agrees to purchase based on appraised value and does not provide a contract price. Can I do this? Fannie Mae states I must enter a contract price?

I am sorry for being so harsh. MV is very unique value definition.

Your specialty is knowing your subject market.

 

[Zoe]

I'll get you boy or girl. How diverse is real property in subject MV? Your forced me.

Please study market value vs price. Get back to me. I can help you more if you push me.

 

[alebrewer]

You can not bring yourself to admit that this MUST verbiage is in the portion of selling guide section for the lenders - yes THEY must ensure the contract price is present for THEIR submission of the appraisal. Nbodou is arguing otherwise

Apparently the disconnect is with understanding English.

To wit: If the instructions were intended for the underwriter, they would say (or similar): "The underwriter is to ensure that the appraiser..."

If the instructions are intended for the appraiser, they say, "The appraiser must". See how there's no mention of what the underwriter needs to do there? That's because it's not intended for the underwriter. It's intended for the appraiser.

Even as I write this, though, I have absolute confidence that you still will not get it. That said, I'm not really writing for your edification, but for someone who might actually believe what you're saying.

 

[alebrewer]

You can not bring yourself to admit that this MUST verbiage is in the portion of selling guide section for the lenders - yes THEY must ensure the contract price is present for THEIR submission of the appraisal. Nbodou is arguing otherwise

By the way, how is this: "The underwriter must ensure that the appraiser MUST enter the contract price."

any different than this - practically: "The appraiser must enter the contract price."

 

[NC Appraising]

For all lol

Contract Price $
The appraiser must enter an amount in this
field if the “Assignment Type” is a purchase
transaction. Contract price must be the same
as the sales price for the subject property in
theSales Comparison Approach section.
Reporting Format:

https://singlefamily.fanniemae.com/media/21731/display

https://www.HUD.gov/sites/dfiles/SFH/documents/SFH_POLI_APPR_RPT_FIN.pdf

Contract Section
This section must be completed when the appraisal assignment involves a purchase transaction,
otherwise leave blank.
The following table provides instructions for completing the “Contract” section of the report.
Field Protocol
Analyze
Contract for
Sale
• Mark the appropriate box to identify whether the Appraiser did or did not
analyze the contract for sale for the subject purchase transaction.
• Explain the results of the analysis (terms and conditions) of the contract
for sale or why the analysis was not performed.
• The analysis may include a reference to the number of pages contained in
the contract for sale provided.
• Identify the source(s) used, price(s) and date(s) of current or prior listings.
Contract Price
$
• Enter the final agreed upon contract price.

 

[NC Appraising]

Time to throw a wrench into the works. Appraiser has a contract that states the purchase price will be the appraised value. Appraiser gets to the point where the have developed their OMV. What is in place that would prevent the appraiser to enter their OMV as the purchase price in the contract price field?

I don't see a problem with that. Just cannot leave it blank.

 

[TerryRohrer]

I don't see a problem with that. Just cannot leave it blank.

If you are standing on FNMA verbiage, then you should quit at step one, where the lender is required to provide a complete, ratified contract to the appraiser. A document is not a ratified (nor enforceable) purchase agreement without a price.