Closed Sale After My Inspection Date

[J Grant]

I think many times we, especially on the RES side of appraising, get caught up in the "AMC" mentality of our profession. Granted, the AMCs are a big part of RES appraising these days, but they are not ALL of RES appraising. I think too often many responses to questions on here (even this thread/OP) are ONLY geared toward Fannie/GSE talk, UAD and AMCs, etc. There is a lot of other appraising out there. The OP didn't even say what his report was for! I (and I'm assuming many others) assume it was for GSE/UAD, but maybe not!

My point is, what if you find yourself in the OPs shoes (find a closed sale after the eff date) and your client (maybe a private individual?) is fine with you including it in your report?!
This profession is not always black and white. We have many rules/regs, but I do think there's some wiggle room in there and again, not everything is AMC/GSE related
(steps off soap box)

Since such an extremely large part of residential appraisal is lending work that is the assumption when answering. It a poster is working on a non lending assignment, the poster should say so (often they do, they start out a post or thread by saying they are doing a private party assignment )

 

[Michigan CG]

Appraisers would be needlessly risking license or complaint of fraud over such a thing when they don't have to.

Please tell us how using a sale that closed on the signature date of a report would be fraud. Who would be the victim of this fraudulent activity? When fraud is committed there has to be a victim and a perpetrator of the offense.

 

[Michigan CG]

I have one lender client that if a sale closes in same month as the effective inspection date, requires the date it closed be described in narrative even though the UAD only has month and year. (for this very reason, they want to see that the sale closed on or before the effective date)

You need better clients.

 

[Michigan CG]

And IF (my bold) I use it as a closed sale, I disclose, disclose, disclose.

Stop with the common sense, you could be committing FRAUD, you could lose your license, heck you might even end up in JAIL!!!!!!!!!!!!!

 

[Michigan CG]

I am going to write a report tomorrow or Monday and I am going to use a sale that closed in May, 2017. The effective date of the appraisal is December 31,2017. I will be participating on the forum from prison.

 

[Deleted member 134708]

@Michigan CG et al

This may be beyond a stupid question but...

I'm sitting on the couch on my phone so cut me a little slack if I'm out in left field.

1) effective date is for the subject and the subject only. Its condition, presence, etc. all centered around valuing the subject on a certain date in time.

2) Let's take a home you inspected 6 months ago. You should be able to use and show all closed sales from today. And if need be give them negative market conditions adjustments to account for time/market conditions? (Increasing market)

If sales from the past are a good indicator of value, then the opposite must also be true. Sales from the future are just as good. Am I wrong? (Future sales aren't better due to market conditions are held constant)

 

[J Grant]

Do you have a reading comprehension problem Mich? The fraud I spoke of was changing the effective date from the true effective date when interior inspection made. stemming from post 13. .

Read post # 13, that was what led up to my post and it is about changing an effective date .Fraud is intention to deceive, and if an appraiser says a later date was the effective date rather than when they actually did the inspection is the issue. Again , read post 13 and later references to changing the effective date that followed.

 

[J Grant]

Please tell us how using a sale that closed on the signature date of a report would be fraud. Who would be the victim of this fraudulent activity? When fraud is committed there has to be a victim and a perpetrator of the offense.

The reference to fraud stems from post 13 changing an effective date to a drive by just to accomdate a closing after the real effective date .Fraud is intention to deceive...which is how an appraiser could get into a problem...even for an innocent reason

 

[PushinValue]

Call it pending and give it weight. Listings are the best indicators of value as of the effective date anyways (we just don't know if they are going to close or at what price). I we got to wait a month to submit reports we could be within 1% every time

 

[Michigan CG]

Do you have a reading comprehension problem Mich?

No reading comprehension problem. The definition of fraud is? Who is the victim of this fraud?