Change in contract price

[TN Pro]

I know how i handle this, how do you handle this?
The effective date of the appraisal, 08/20/2023, appraisal was uploaded that day with what the appraiser thinks is the latest contract
Turns out, the contract was amended on 08/15/2023 but it was not given to the appraiser.
Appraisal report delivered, the lender gives the appraiser an amended contract dated before the effective date, and wants page one of URAR to reflect this.
In this situation, why can the appraiser not make the change and reissue a new report?
Edit, this is not my report, it was taken from a FB group. I am fully aware how to correctly handle this situation.

 

[glenn walker]

The change can be made just document it and use a new signature date.

 

[Dublin ohio]

Here is what FNMA says. They don't have a "policy" that states whether or not the appraiser can change it after the fact. When I get requests like this. I add an addendum explaining the situation with a new signature date. I don't change page 1


https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B4-Underwriting-Property/Chapter-B4-1-Appraisal-Requirements/1032999261/What-if-the-sales-contract-is-changed-after-the-appraisal-is-completed.htm#:~:text=If the contract is amended,property used by the appraiser.

 

[J Grant]

just note the date you made the change in SC price and why and keep it on the original report ( assuming you did not change the market value opinion of courser )

 

[Carnivore]

If I understand your question the answer can be found at FAQ # 153 page 252

"The Appraiser may not simply replace the pending sale price information in the appraisal report and sbumit the report to the client, as this would be misleading."

it goes on to say more "....under standards Rule 1-5(a) yada yada

 

[shrubberyvaluation]

If I understand your question the answer can be found at FAQ # 153 page 252

"The Appraiser may not simply replace the pending sale price information in the appraisal report and sbumit the report to the client, as this would be misleading."

it goes on to say more "....under standards Rule 1-5(a) yada yada

So they are not against you replacing it as long as you note that you replaced it.

 

[Dublin ohio]

USPAP 2020-21 FAQ #153
REVISION TO THE CONTRACT PRICE

Question: I recently completed an appraisal for mortgage financing purposes in a purchase transaction and delivered the report to my client. My opinion of value was less than the pending sale price. One week later, the buyer and seller renegotiated the contract agreeing to a price equal to my appraised value. My client asked if I can provide a revised report wherein I replace the prior sale price with the newly agreed-upon sale price. How can I do this and comply with the requirements of USPAP?

Response: The appraiser may not simply replace the pending sale price information in the appraisal report and resubmit the report to the client, as this would be misleading.

Under Standards Rule 1-5(a) the appraiser is required (when the value opinion to be developed is market value, and if such information is available to the appraiser in the normal course of business) to “analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal.”

If the new contract information is stated in a revised report, the appraiser should note that the second contract was provided after the effective date, and the information regarding the contract that was in place as of the effective date must remain in the report. Further, the revised report must have a new report date, as of the date the revised report is transmitted to the client.

If the client does require a more current effective date, the request must be treated as a new assignment.

Additional related guidance may be found in Advisory Opinion 1, Sales History, and Advisory Opinion 3, Update of a Prior Appraisal.

Report

 

[glenn walker]

God I almost can't take it - Any error or mistake is to be corrected so the end product reflect what the final sale and transaction is. Why is this so hard- to understand . I once had one where the Realtor had showed $50,000 when she meant $500,000- Of course I knew it was a mistake and error. Just change it-note it and be done

 

[TN Pro]

just note the date you made the change in SC price and why and keep it on the original report ( assuming you did not change the market value opinion of courser )

Not my appraisal its a general question as it seems many appraisers dont agree

 

[TN Pro]

God I almost can't take it - Any error or mistake is to be corrected so the end product reflect what the final sale and transaction is. Why is this so hard- to understand . I once had one where the Realtor had showed $50,000 when she meant $500,000- Of course I knew it was a mistake and error. Just change it-note it and be done

I agree, i took this from a FB group thread and it seems like many appraisers dont understand how to handle it. To me, its straightforward