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Change In Sale Price, Please Change Report.

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larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
I recently appraised a townhome for $105,000 with a sale price of $110,00. This was an FHA. The processor called today to ask us to change the sale price in the report because the parites have renegotiated the sale price. They just want me to send them the first page of the report. I have not responded yet but wanted to get some input. I don't believe it's appropriate to change something on the first page after the report after it has been submitted and not acknowlege that change in the report. I don't remember being asked to do this in the past. I don't see any reason to change the report because they already have an appraisal to support the new sale price. I know Brad Pack checks in from time to time and I may call him but I thought it might be worth discussing here.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Larry,

Change it when they send you the new contract. Then in the main body somewhere talk about this change in price.

Now here is the Kicker: You have to explain this per USPAP. Remember , analyze and cooment where necessary all listings, contracts blah blah blah.

This is where Fannie Mae made the outrageous claim that appraisers hit the sales price 90% of the time anyway. The only way we can stop this nonsense is to fix it so they cant lie about it.
 

Tawfik Ahdab

Senior Member
Joined
Feb 19, 2003
Professional Status
Certified Residential Appraiser
State
Oregon
As of the effective date of the report, what was the pending sale price? That's the price to be noted. Negotiations concluded after the effective date of your report are immaterial. Does the change in sale price change your value conclusion? If so, it would require a re-appraisal, that is a new valuation in light of changes in terms (which could include repairs, items of personalty, etc.). Changing the report after it was turned in could be misleading. If the lender wants you to acknowledge the changed sale price, you could do so in a separate letter. It would make no sense for the price change to be reflected in an altered report since the final sales contract date would be later than the effective date of the appraisal.
 

jeff samolinski

Senior Member
Joined
Apr 18, 2003
I think I would do reinspect to change the effective date of value to be after new sale price negotiated than explain history is recent sales listing of subject. Of course you would charge them a reinspection fee plus the cost to update the appraisal.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
I really hate to beat this but here goes.

IF the lender insist that you change this appraisal, then it is an UPDATE and the effective date must be changed to encompass the new contract. I would as a matter of USPAP include both contracts in the report. I would reference both of these contracts somewhere in the main body, so that they CAN NOT remove them without it being noticed. I would explain in detail what has transpired. If they whine then just say this: 'Just like you have rules to follow, so do I! '

Do not give in.

Do not cowtow.

Do not charge extra except for actual cost. Unless of course they want you to hand carry the report to them. Then charge exactly what a same day delivery service does.

If they dont want the effective date then tell them 'Sorry, Its rules that I have to follow'.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Just say "NO". That was not the contract at the time of the appraisal.
 

BigBlueGA

Junior Member
Joined
Mar 13, 2002
Professional Status
Certified General Appraiser
State
Georgia
Tawfik,

It's a lender... nobody said it had to make sense.. :D
 

Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
No big deal, really. Change contract sale price and date of appraisal. Probably should run back out and take a quick look and charge for your time.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
What are you looking at????? And why? You haven't changed the value, you haven't changed the effective date of the appraisal, have you???
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
If it's an FHA, you have to be furnished a copy of the contract. If they renegotiated the sale price but it's still within range, then just retype and add in the 2nd page that the contract was renegotiated after the date of inspection but the appraised value has not been affected.

Roger
 
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