Additional Comps after Effective date

[Mutyger]

I have been getting a rash of lenders lately asking for additional comps after the effective date of the appraisal. Just had one recently that I inspected in March and they wanted 2 new comps that sold within the last 3 months after inspection. I have been telling them that they need to order a new appraisal as my effective date was 3 months ago and they squak. How do you folk handle these types of requests?

 

[The Bob]

What they REALLY want is a new opinion of value, right? They just couch it in "new comps" because a) they're idiots b) they don't want to pay for it.

So, you now have to explain to them that a) your appraisal was a "snap shot" in time and you can't just go back and "change" it and b) they need to pay for a new report. One is an appraisal problem, the other is a business problem.

 

[Mztk1]

It is definately a new appraisal. You can discount it a little because you don't have remeasure; but if they continue to be bothered over it, have them go to another appraiser who will charge full fee.

 

[RSW]

Yes, it is a new appraisal and you have just as much liability in the second one as you do the first one. Why would you do it for free? I sure would'nt.

 

[sammiboii]

I COMPLETELY agree with the three responses listed above. It's not your fault they delayed the closing 3 months after you did your appraisal. I understand that they are now trying to make sure that the value didn't go down from three months ago but that's not your problem.

My 2 pennies.

 

[BOBBYGINE]

I bet three months ago they hated the value and now it looks pretty good.

 

[Couch Potato]

I have been getting a rash of lenders lately asking for additional comps after the effective date of the appraisal. Just had one recently that I inspected in March and they wanted 2 new comps that sold within the last 3 months after inspection. I have been telling them that they need to order a new appraisal as my effective date was 3 months ago and they squak. How do you folk handle these types of requests?

I simply quote the fee for the work. Why tell them they "need to order a new appraisal," when they only want information on a couple of recent sales. Quote them a fee and send the sales. Don't alter you previous work.

 

[Mike Boyd]

I did one over a year ago last February and the client had the good sense to order a new, full fee appraisal this February. Then, about 6 weeks ago, the client said the underwriter needed two new comps!

I told them that new comps will probably not support the original value...even if I could find any.....700+-sf house on two acres in the Napa Valley wine country. BUT, if paid a partial fee in advance, ($125 for each comp) I would enter them in a grid without changing the effective date and with an explanation that they were asked for 3 months after the date on the report. My client agreed and said they would have the borrower send me a check. That is the last time I heard from them. It is just as well as I am pretty sure any new sales would not support the value found in February even though, up to that time, values were stable in that area. It was a hassle in the making and I really did not want to get involved in it.

Now, if they decide to go ahead, it will be a new assignment at full fee or they can find another appraiser.

 

[Lee Lansford]

What they REALLY want is a new opinion of value, right? They just couch it in "new comps" because a) they're idiots b) they don't want to pay for it.

So, you now have to explain to them that a) your appraisal was a "snap shot" in time and you can't just go back and "change" it and b) they need to pay for a new report. One is an appraisal problem, the other is a business problem.

"You took the words out of my mouth!"

 

[Elliott]

My first question would be, "Provident?"
Dumb MBs promise the 1/4% lower rate and think
they're going to be the one that gets the brass
ring. Only the lucky few get the grass ring.

Once you meet the Provident 'new' comp
requirement, you'll get the closer, bracket,
requirement, followed by the list of 13 sales
and your asked to explain why you didn't
use them. Many MBs hate Provident and
will have nothing to do with them.