Completed an appraisal yesterday.

[Kim Bell]

Occassionally the contract's for sale and purchase are written contingent upon an appraised value at or above contract price. The savy buyer would want that in there! We have come across many like that, with cash buyers that want an appraisal without financing. So, ultimately, the buyer is an adult and is responsible for their decisions.... buyers have to accept some responsibility for their decisions, don't they? Why lay it all on the appraiser(s)?

Yes, this is coming from someone who has been in real estate since 1991 and is a Realtor and appraiser. I have seen a lot of crazy stuff out there! My tolerance level has been met!

 

[Richard Carlsen]

Occasionally the contracts for sale and purchase are written contingent upon an appraised value at or above contract price. The savvy buyer would want that in there!

And the savvy appraiser,seeing that verbiage in the PA will make sure that he/she has something like this in the report (these are taken from my additional comments on page 3):

1. The Intended User of this appraisal report is the Lender/Client. The Intended Use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. No additional Intended Use or Intended Users are identified by the appraiser.

2. Mere possession of a copy of this report by a Third Party who is not the named client (Intended User), is not authorization to make use of any part of this report for any purpose whatsoever. Use by any Third Party, not specifically named as a client, for any reason or purpose, is not contemplated nor intended by the author.


9. No decision to buy or sell shall be based on the opinion of value or the comments/data contained within this report. Such use of this report is not an Intended Use of this report and is specifically forbidden.

I have on several occasions, made my report subject to such provisions of the PA being taken out of the contract. When the brokers try to double dip on the appraisal in this way, I will typically change the font on #9 above to all caps/bold type plus make a comments in the report that the part contained in the PA is not part of the assignment nor the permitted Intended Use of the report and may make the report ineligible for inclusion in any sale to the secondary market. I advise the client that if a sale to the secondary market is contemplated, they should obtain specific permission for the appraisal to be written in such a manner that both the lender and the buyer could be construed as clients of the appraiser.

To date, not one of these PA's have stood the UW requirement that that statement be removed from the PA.