Contract change

[Derek Schmaltz]

Hello,

Maybe some one can help me out.

Completed a Purchase Appraisal on 7/18/2008 Appraised lower than purchase price. Got a Call from the lender with a new counteroffer addendum
dated 07/23/2008 with a new purchase price and be 6% closing cost paid by seller with assistance through Ameridream Foundation.

They want me to revise the Appraisal with this new Counteroffer. Can this be done on the same Appraisal or does another Appraisal have to ordered.

Any thoughts would be appreciated

 

[Derek Schmaltz]

And this is FHA

 

[Dennis J. Black ASA IFAS]

as of the date of appraisal the contract was X. End of story.

 

[Kevin A. Spellman]

I would not accept a counter-offer agreement. I would only respond to a signed contract and then amend the report in respect to a new contract and print the original report for the file and then rename the second file in the computer. No name change for the client or the participants and of course no change in the report findings that are only five days old.

 

[Dennis J. Black ASA IFAS]

Amend your appraisal, why?

 

[Mztk1]

I'd provide an addendum with an analysis of the new contract. I wouldn't change the contract info in the report because that was the contract info on the date of inspection.

 

[Derek Schmaltz]

Amend the Appraisal with the new contract counteroffer Data. I guess I was asking if this would be missleading.

 

[NC Old Guy]

If I read the OP correctly, makes one question the sanity of the agents. (1) Sales Price #1 greater than appraised value. (2). Then, increasing the sales price because of gift funds is supposed to increase the appraised value? by more than the gift? Or did I miss something?

Now, back to the argument as to whether or not you can change the information on the report so far as the contract is concerned. To me--change it, tell them under the analysis of contract what it was before, what you changed about the contract & why, and have a new signature date of the report that would reflect the changes.

Does it always have to a complex answer to a relatively simple question? DISCLOSE!! DISCLOSE!! DISCLOSE!!, etc, etc

 

[Lee Lansford]

"USPAP Q&A.May, 2008"

USPAP Q&A...May, 2008:

"Question:
I recently completed an appraisal for mortgage financing purposes in a purchase transaction and delivered the report to my client. My appraised value did not support the pending sale price. As a result, the purchase transaction was not consummated. However, one week later the buyer and seller entered into a new purchase agreement where the sale price coincided with my appraised value. My client asked if I can provide a revised report that includes the analysis of the newly agreed-upon sale price. To provide a revised appraisal report, must I consider the client's request as a new assignment?

Response:
If the client DOES NOT require a more current effective date, USPAP would not mandate treating the request as a new assignment. However, if the client DOES require a more current effective date, the request must be treated as a new assignment.

In this example, regardless of whether the effective date is changed, the date of the report would have to change to accurately reflect the appraiser's consideration of the newly obtained agreement of sale. Because the new purchase agreement was obtained AFTER the date of the first report, the revised report would need to have a date of report that is the same or later than the date the new purchase agreement was obtained by the appraiser.

In addition, the new report would also need to reflect the appraiser's analysis of the prior agreement of sale. In the development of an appraisal, an appraiser is required under Standards Rule 1-1 (b), 'to not commit a substantial error or omission or commission that significantly affects an appraisal.' Since information about the prior agreement of sale is known by the appraiser and that information is relevant to the appraisal problem, it must be considered."

Does this help?

 

[Derek Schmaltz]

Thank you all for your feedback. I greatly appreciate all who have responded.

Derek