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So what? It's a reporting requirement. You review and analyze the purchase agreement and include a summary of the results of your review and analysis in the appraisal report. Period.
Why is your opinion of value higher than the last most similar sale in the same PUD? Especially if the subject needs repairs, which it appears per your posts, the seller is unwilling to pay for?
That may be true with respect to the loan officer, but the lender (and investor) certainly do care if the value is significantly above the sale price, and they will wonder why that is the case.
The 3 sold comps in the subject PUD sold for $459K, $465K, and $470K based on contracts 1, 18, and 24 months ago; the one same-PUD comp that is pending sale is listed at $538K; and the OV is $480K--although the selling prices [AKA Unadjusted Values] have no bearing when the OV is being determined, based both on USPAP and FNMAE standards. The subject was listed at $490K then reduced to $460K after just one week, and is under contract at $452K. The three solds comps in competing PUDs with much more recent contract dates, adjust to $476K, $478K, and $495K. Plenty of support for the OV, despite sparse market info, but also plenty of irregular listing activity to ignore; and the "seller refuses to make lender-required repairs" stance presumably is the reason for the drastic drop in listing price and the corresponding offer that ostensibly is far below market, and far below the OV, unless I would factor in the unknown reason for the decreased list price as an adjustment to all comps, although factors that affect the subject sale aren't used to adjust the comps--ergo the reason I posted on the AF, although smart *** responses like #21 above kinda leads one to realize why the public hates appraisers....
Based on the 3 closed sales, the time frame appears to be a declining Market. Why is the pending sale so high? Did you contact the listing agent to see if it closed at or under list? Is the pending unit in similar location in the PUD as the subject? Similar in condition?
Okay, looks like it was reduced for a quick sale.....but $25K over list @ $477k? Based on the closed sales within the PUD which a couple are dated, that seems like a stretch. I could see max $470. But that's based on a 24-month-old sale.
?? Bold type - where does it say in USPAP to ignore the unadjusted sale prices ? The sale prices before adjustments are good information. While we use our adjusted prices of the comps for the OMV, the raw prices tell us where the market is for those sales. I have no idea why a pending is considered when it is priced so much higher than the subject...The data we exclude can be almost as important as the data we include.
Yep. When I come in low, i. Comment. When I come in high, i Comment.
Good morning. LOL, I never heard that one before but sure is true!!! [BTW I conditioned the report "subject to" a roofing cert because the facia board under the fascia is scalloped or blistered all around the house, and the seller's CO that no repairs will be made even those that are lender-required presumably will kill the deal... so my first thought is to advise the listing agent that the next buyer can be provided with my contact info so their lender knows how to contact me for a ready-made, out-the-door report [after the current offer dies to avoid the appearance of a conflict of interest, so to speak--here come more rocks!!!!
Thanks for your perspective. I'm kinda chafed that two potential revenue sources--one an AMC and the other a prominent appraiser whose focus is legal work--both recently advised me to say as little as possible in every report, although my 1004 template addresses as much tangible info as possible in an attempt to educate Intended Users and also to reduce stipulations by addressing potential sources of confusion in advance....
