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

[gregb]

So, what are you stating on page one of the appraisal in the field for Sale Price? Which carries over to the grid. The original contract sale price as of the effective date of the appraisal or the newly negotiated sale price, post effective date of the appraisal, which per fannie certs is the inspection date?

 

[CANative]

sigh

It's a post completion request for service. The date of report changes once this service is complete. If the client doesn't need a new date of value then there is no new appraisal.

 

[gregb]

Right, I don't do post completion of appraisal services unless it is a new appraisal service.

 

[Evincere]

I have seen countless threads on this - but no solid answers.

USPAP Standards 1-5 says
a) analyze all agreements of sale, options, or listings of the subject property
current as of the effective date of the appraisal.

BUT



.

Ha. Welcome to the Appraisers world, AMC guy. Be sure this time to thank the Appraisers here who have offered to assist you with your problem.

 

[Mike Garrett RAA]

Current as of the effective date!!!!! There should never be a requirement for the appraiser to do anything after the effective date UNLESS the requester is willing to pay for additional services. That said...what is the big deal? If I need to correct my appraisal report due to an error, typo, or what ever that is my fault, I am more than willing to do it.

 

[J Grant]

USPAP is not written to protect the appraisers' income stream...esp decree that it's a violation of USPAP to not fulfill client requirements. If appraiser can endure reading the mouse type of a biblical length client assignment order, they might find a requirement to make changes to the appraisal for new information submitted by client . (or similar language)

Appraisers need to charge enough up front anticipating this sort of thing will not be paid additional for res lending work especially with TRID. If a client agrees to pay more great, but most won't unfortunately...they may pay that one time but never use you again. If a client pays willingly each time out, would love a referral to them!

 

[CANative]

Anyone who has made themselves familiar with Fannie Mae requirements should know that this will come up from time to time and it should not be a surprise nor something to gripe about. It's part of being competent. It's part of the business of having an appraisal practice.

 

[djd09]

There should be a mandatory resend fee. Besides the fact that the appraiser analyzed a meaningless original contract (1 to 50 pages) the appraiser now needs to analyze another contract, change info, and resend. And do we need to retain the original report for record keeping? Money for nothing and changes for free.

 

[TJSum]

It all depends on what the changes to the contract are, if it triggers a new assignment or not. If the changes are price changes or sellers concessions changes, it is not a new assignment because we are appraising the real estate, not the contract. We can keep the same effective date, just change your signature date and explain the differences between your two reports. However, it would be considered a new assignment if the contract changes actually change the real estate you are appraising, such as when we are appraising new construction and the changes are options added or delete, repair changes, FHA to Conventional loan changes or vice versa, etc. The bottom line, if the contract changes change the actual real estate, then it triggers a new assignment, but if the changes are independent of the real estate you have appraised, then it is not a new assignment and can be handled with the signature date change and proper explanations of what the differences are between your two reports.

 

[djd09]

The purpose of this appraisal is to set the sale contract price. Since the the buyer and seller have no clue and fannie needs all the documents to match this appraisal has been updated to reflect the common senseless.