Closed Sale After My Inspection Date

[TRESinc]

You misunderstood my example, my example was to show this DOES NOT happen in real life ( prices DO NOT change after a closing in real life)

that's not what you posted...

Tres, It is an example of what would happen in the market place. What happens in the market place applies very much to appraisals.

unless in your world the market place is not real life...

 

[J Grant]

That is exactly what I posted, you mis understood it (or I wrote it in such a way that it was not clear, to give you benefit of the doubt.

I sold RE for years and have owned/bought and sold my own properties...obviously I realize closed prices don't change because other properties sell afterward. But appraisers are doing just that on appraisals if they change a most probable price as of X effective date because other properties sold after that date.

 

[TRESinc]

i guess there is no point in this discussion. the top poster of the month is never wrong, even when they are.

 

[Mr Rex]

Just don't forget that the agreement to purchase and contract is long before the actual closed date of the comparables. The meeting of the minds pre dates the closing.

 

[hastalavista]

posted several times during this thread was the freddie mac guidelines, ( at least 3 sales that closed before the effective date ) and found one fannie referencing declining markets ( 2 sales that closed within 90 days before appraisal effective date) Mr Rex posted a date FAQ where it addresses as of effective date and signature date. I have one national level lending client that requires I put exact date it closed in comments on any sale within the same month as signature as they want the closed as of effective date. But that could be a requirement of that particular client.

A USPAP standard is peer practice. Seems peers are split on the date issue, per this thread and when I googled the subject, older threads on this topic from appraisal forum show up shows a peer practice divide. Nobody was able to find one ultimatum on the subject from an appraisal god lol so who who knows...if it is accepted by a client is that the test?

I will see if I can submit it as a FAQ.

(my bold)

I will save you the time if your intent is to submit the question to the ASB...
1. USPAP is silent on comparable closed sales; it isn't, by itself, going to say what should be used and what is a cut-off. Indeed, in theory, it is possible to do a sales comparison approach with no closed sales.
2. USPAP will say that the closed-sale situation is based on (a) assignment conditions (which may include lender requirements or agency requirements) and (b) what does it take to conclude credible results.
3. USPAP will say that a report cannot be misleading. I say that an effective date is the date the appraiser determines it is (based on assignment conditions, or unless otherwise stipulated in, say, a retrospective valuation as of a specific date). If the effective date is also the inspection date and there are multiple inspection dates, the appraiser can select the last of the inspection dates to reflect the "effective date" unless specific assignment-requirements are to the contrary.

 

[TRESinc]

(my bold)

I will save you the time if your intent is to submit the question to the ASB...
1. USPAP is silent on comparable closed sales; it isn't, by itself, going to say what should be used and what is a cut-off. Indeed, in theory, it is possible to do a sales comparison approach with no closed sales.
2. USPAP will say that the closed-sale situation is based on (a) assignment conditions (which may include lender requirements or agency requirements) and (b) what does it take to conclude credible results.
3. USPAP will say that a report cannot be misleading. I say that an effective date is the date the appraiser determines it is. If the effective date is also the inspection date and there are multiple inspection dates, the appraiser can select the last of the inspection dates to reflect the "effective date" unless specific assignment-requirements are to the contrary.

come on denis, stop with the simple logic. you are not the continuous top poster of the month and you are disagreeing with what the continuous top poster of the month has proclaimed so you must be wrong.

 

[J Grant]

lol, I wish they would drop the top poster of the month category...until it pays $ I dont' care about it and people can post more if they want the prestigious title ( sarcasm lol)....I appreciate your logic Denis.

 

[timd354]

i guess there is no point in this discussion. the top poster of the month is never wrong, even when they are.

She does not win top poster month after month by failing to post nonsense on a continual basis. The top poster of the month tracking should be permanently retired and JGrant should be awarded a lifetime achievement award for Top Poster of the month.

 

[Deleted member 134708]

@J Grant

Act like a professional and value a property correctly with the best available info. If all that info is after you inspected the subject, so be it. It's the best data that represents the subjects value on x date.

Stop being a form monkey. Have a malleable mind and stop, think -- what was this appraisal hired to do? Deliver this and represent the profession. Your mind as of now is concrete.

If you feel the best data is after the effective date and truly don't agree with using it, decline the assignment and let a real professional value that property.

 

[J Grant]

She does not win top poster month after month by failing to post nonsense on a continual basis. The top poster of the month tracking should be permanently retired and JGrant should be awarded a lifetime achievement award for Top Poster of the month.

Top Poster...a combination of the Nobel Peace Prize, an Academy Award and A Miss Universe Crown all at once...lifetime achievement award lol!