Contract Price Change After Effective Date - Client Wants It In The Contract Section

[sandpiperapp]

In theory, the day you analyze new information is the actual effective date. The day of inspection can always be commented on

 

[CANative]

In theory, the day you analyze new information is the actual effective date. The day of inspection can always be commented on

I disagree. I don't think that is an accurate point of view.

 

[gregb]

Cert in fannie report states date of inspection is the effictive date.

 

[sandpiperapp]

I disagree. I don't think that is an accurate point of view.[/QUOTE

I know Greg, and that is ok. I respect your right to disagree. My point makes sense to me and since I am responsible for my clients and the reports I deliver, I will write my reports in a way that makes the most sense to me. Hopefully my clients will appreciate my work.

For the record, for the two direct ordering clients I have, I would add an addendum discussing the contract changes with no charge.

 

[J Grant]

In theory, the day you analyze new information is the actual effective date. The day of inspection can always be commented on

Not kosher. You inspect a property Monday which is day of inspection/effective date. The next day, Tusday you do research and pull data or interview agents and get NEW INFORMATION. Does your effective date jump to Tuesday because you anayzed new information? You gather new information for X days as you develop the appraisal and when done you sign which is the signature date (different than effective date.)

 

[Lee Lansford]

Subject is inspected 1-1-16, that is effective date of appraisal. Signing date of appraisal is 1-5-16.
Revised contract is dated 1-7-16.
Revised appraisal with new signing date of 1-8-16 is submitted.
Question is, how is the new revised contract treated in the appraisal, since the revised contract is after the effective date of the original appraisal?

When reporting, the appraiser must report and analyze all of the versions of the contract that the appraiser is aware of.

 

[Mike Kennedy]

New info, new effective date, new assignment

The URAR says the effective date is when you inspected the property, so if it's a lending appraisal on URAR form and a change in contract occurs and you take that to mean it must be a new assignment with a new effective date that would mean you would go out and do a new inspection.

AND new market data search. As often stated by senior members of this board the FAQ & QA are effectively non-binding, explanatory opinions from the ASB/APB. The USPAP "as of the effective date" requirement is binding.

Should a client want a report with Page One reflecting the NEW contract which did not exist as of the prior Effective Date - NEW assignment, new subject site inspection, comparable selection etc. and a new Report Date is required. SOW discussion with the client as to whether or not a D-by w/photo (or an Extraordinary Assumption) and incorporation of the subject site and improvement data from the prior appraisal would suffice supported by commentary in the NEW report. Whether, and what, an Appraiser charges for the second assignment is entirely up for negotiation with the Client.

 

[Lee Lansford]

AND new market data search. As often stated by senior members of this board the FAQ & QA are effectively non-binding, explanatory opinions from the ASB/APB. The USPAP "as of the effective date" requirement is binding.

Should a client want a report with Page One reflecting the NEW contract which did not exist as of the prior Effective Date - NEW assignment, new subject site inspection, comparable selection etc. and a new Report Date is required. SOW discussion with the client as to whether or not a D-by w/photo (or an Extraordinary Assumption) and incorporation of the subject site and improvement data from the prior appraisal would suffice supported by commentary in the NEW report. Whether, and what, an Appraiser charges for the second assignment is entirely up for negotiation with the Client.

Mike, the appraiser MAY opt as you offer, but, nowhere is it mandated that it constitutes a new assignment.

On more than a few occasions I have provided a 2nd appraisal report (with the one Effective Date) where the 2nd report considers (reports, analyzes) a contract of sale price that is different from the original. I have yet--and I have no reason to suspect that I will--to consider the 2nd request as a new assignment.

 

[Mike Kennedy]

2016-17 USPAP

SR 1-2(d) identify..Effective Date
(e) ....contracts......
SR 1-5(a) "current as of the Effective Date"

 

[J Grant]

Obviously new information is added to an appraisal after effective date, since we might inspect property on effective date of 01/05 and do research and development and then sign it on 01/10 and deliver it to client.

Sometimes after client receives the appraisal new information comes forward or client in some cases asks for comments or add a comp etc. The effective date stays the same, the appraiser adds comments or changes and on what date they were made and then a new signature date is established . This is not a "new" assignment, it's continuation of original assignment.