Closed Sale After My Inspection Date

[J Grant]

Where is the deception, the fraud, the lies, etc. if the appraiser clearly discloses in the report?

We are not lawyers and not trying fraud cases, but as far as your above question...I suppose it would depend on what was disclosed..

I took $100 from your wallet, but left a note disclosing that I took it. I still took the money and did not have your permission to take it. Does my disclosing after the fact change that?

Do what you want... the thread should show the possible murky areas in play when it is so simple to just state what status a property was as of the effective date ( closed or pending), and not fool around with effective dates changing it to a later date when drove by the property etc.

 

[Deleted member 134708]

The market is screaming higher so you put in comps that closed after effective date as sold and STILL adjusted them up? Holy ** batman is all I can say; keep your fingers crossed you avoid a retrospective field review .

Comprehension fail.

I gave a negative adjustment to comp 2

 

[Deleted member 134708]

The effective date is for the subject only and its conditions.

The date of the report is for reviewers for the lack of a better term.

 

[Deleted member 134708]

The VALUE IS DERIVED FROM THE COMPS, thus THE EFFECTIVE DATE APPLIES TO THE STATUS THE COMPS AS WELL...otherwise, why even have it? It would be an effective date was inspection only, with the market value opinion as of the signature date. But that's not how it is. It is the value as of the effective date, with report signed X days or weeks later.

This statement is showing you are missing very basic economic knowledge.

In no way do I want to besmirch you. I'm stating what that comment represents.

 

[J Grant]

This statement is showing you are missing very basic economic knowledge.

In no way do I want to besmirch you. I'm stating what that comment represents.

It has nothing to do with me or my economic knowledge. It's the certification you signed, "my/our opinion of value of the subject property is X $ as of the effective date.

" Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting conditions, and appraiser’s certification, my (our) opinion of the market value, as defined, of the real property that is the subject of this report is $ , as of , which is the date of inspection and the effective date of this appraisal."

If you think market value changed that much between the 2 week period you sign it and the effective date of inspection, then explain to lender and ask to re inspect for a new effective date. I suppose one could do this forever, as the market keeps changing and different sales close .

 

[Mr Rex]

131. DATE OF APPRAISAL
Question: What is the date of appraisal?
Response: The date of the appraisal is an ambiguous term. The appropriate terminology is either the effective
date of the appraisal, to reflect the time period relevant to the assignment results, or the date of the
report, which indicates when the appraisal analysis was completed.

132. DATE OF VALUE
Question: Is the effective date of the appraisal the same as the date of value?
Response: Yes.

 

[J Grant]

DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale.

Nottrav ( any of us) Above URAR definition states: implicit is a consummation of sale ( closing) with passing of title as of a specified date ( specified date is the effective date)

Therefore, since the market value of the subject is based on its implicit consummation of sale as of the effective date, how can it's price change after the effective date?

I closed on my house sold for 290k on June 19. Done, funds deposited, title passed. Then on June 21st, I find out house across the street sold for 300k. Can I go back and ask the buyer for 10k more and re-do the closing? I don't think so.

Whether we like it or not, an appraisal value opinion is slightly retrospective back to its as of effective date. If our analysis of subsequent market activity between effective date and signature date shades our market value opinion I suppose that is baked into the process. But the market activity up to the as of effective date is the time period relevant to assignment results ( see post 66 above)

 

[Mike Kennedy]

Inspected a property 06/19 used a closed sale of 06/21. I stated the sale as closed and not pending as it was on inspection date...how would you report the comparable and why?

Thank you for the feedback!

As an additional, not primary Comparable. Primary Closed Comparables are confirmed Closed Sales. Contracted Listings are under Active Contract with mutable prices. e.g. Supporting Supplemental Comparable 4 is a Confirmed Contracted Listing on 5/19 which closed on 6/21 - data per Listing/Selling Agents is assumed credible.

 

[Mark K]

I took $100 from your wallet, but left a note disclosing that I took it. I still took the money and did not have your permission to take it. Does my disclosing after the fact change that?

Jeeez Grant. I think only you could stretch this things this far.

Do you even comprehend the difference between theft and appraising?

 

[J Grant]

Of course I do. It was an analogy but I happen to agree it was overly harsh..considering the topic.