Contract Price

[J Grant]

Both.

If the appraiser 'MUST' (as you'll be forced to agree), then the directive is for the appraiser. I'm cool with your assertion that the underwriter has to verify that the appraiser did, but the fact remains that it's the appraiser who MUST, not the underwriter. In which case, the guidance is written for the appraiser.

To carry your logic to its conclusion: the Selling Guide isn't written for the appraiser, thus the appraiser does not need to follow it, because it's written for the underwriter. That is ludicrous.

Okay, lets put it like this.

The Fannie selling guide section for the lender and tells the lender that the appraiser must enter the SC price for the SUBMISSION of the appraisal report to Fannie ( or Freddie ). So at that time, when the CS price is available, the appraiser enters it.

However, per USPAP, the CS price, or even a contract, is NOT needed for appraisal DEVELOPMENT. So the appraiser can develop the appraisal without a SC price, send the report to the lender client, and later, when a SC price is signed into contract, revise the appraisal by entering the SC price and commenting on the revision.

You would agree to the factual reality that appraisals are often revised to change a SC price, or add a name to a contract etc. This would be no different.

 

[djd09]

.... flashback above to you guys arguing.... to my grandmother and grandfather arguing non-stop. She would say "Merle." He would say "Bertha." That's it. Over n over. Back n forth. All day. Every Day. For Years. I was a little kid with absolutely no idea of who Merle ad Bertha were.

sometimes the truth is painful...but there is an ignore button here...if they want to help the lender end round laws then good luck oink oink oink

 

[alebrewer]

Sir, Point-of-Order: Ms. G is never "forced to agree"about anything !!!!!!!!!!!!!!!!!!!!!! LOL

Agreed - clear and conspicuous data that would normally force someone to acknowledge something seems to be entertainingly missing for some folks.

 

[alebrewer]

Okay, lets put it like this.

The Fannie selling guide section for the lender and tells the lender that the appraiser must enter the SC price for the SUBMISSION of the appraisal report to Fannie ( or Freddie ). So at that time, when the CS price is available, the appraiser enters it.

However, per USPAP, the CS price, or even a contract, is NOT needed for appraisal DEVELOPMENT. So the appraiser can develop the appraisal without a SC price, send the report to the lender client, and later, when a SC price is signed into contract, revise the appraisal by entering the SC price and commenting on the revision.

You would agree to the factual reality that appraisals are often revised to change a SC price, or add a name to a contract etc. This would be no different.

Different intended use. Period.

 

[J Grant]

The inflation rate affects the economy, and the economy impacts RE home prices - or is one of the factors along with interest rates and supply and demand.

Inflation is already baked into an impact on prices , so to analyze it as an additional metric compared to prices is double dipping, and introducing a complex element that IMO is beyond the expertise of most appraisers. if someone feels equipped to add it competently as an additional benchmark comparison for RE price trends then go for it.

 

[ZZGAMAZZ]

The inflation rate affects the economy, and the economy impacts RE home prices - or is one of the factors along with interest rates and supply and demand.

Inflation is already baked into an impact on prices , so to analyze it as an additional metric compared to prices is double dipping, and introducing a complex element that IMO is beyond the expertise of most appraisers. if someone feels equipped to add it competently as an additional benchmark comparison for RE price trends then go for it.

Granted, yet all the publised data about anything that we use also is complex, while our understanding of the fundamentals is superficial at best. Perhaps this thread is moot at best...

 

[Mark K]

.... flashback above to you guys arguing.... to my grandmother and grandfather arguing non-stop. She would say "Merle." He would say "Bertha." That's it. Over n over. Back n forth. All day. Every Day. For Years. I was a little kid with absolutely no idea of who Merle ad Bertha were.

With my parents it was more like:

Dad: I had to go the hospital last Tuesday.
Mom: No, it was Wednesday.
Dad: No, I'm sure it was Tuesday.
Mom: No, it was Wednesday because that's the day after I got my haircut.
Dad: No, it was Tuesday because I had the oil changed at Walmart in the car the day before.
Mom: I'm telling you it was Wednesday because Gertrude called me that day to tell me about how her sister broker her hip.
Dad: You talked to her the day after the hospital because the cat got out the night before and I had to chase him all over the yard to find him.

Me: I DON'T CARE WHAT DAY IT WAS. WHY DID YOU HAVE TO GO TO THE HOSPITAL????

 

[ZZGAMAZZ]

With my parents it was more like:

Dad: I had to go the hospital last Tuesday.
Mom: No, it was Wednesday.
Dad: No, I'm sure it was Tuesday.
Mom: No, it was Wednesday because that's the day after I got my haircut.
Dad: No, it was Tuesday because I had the oil changed at Walmart in the car the day before.
Mom: I'm telling you it was Wednesday because Gertrude called me that day to tell me about how her sister broker her hip.
Dad: You talked to her the day after the hospital because the cat got out the night before and I had to chase him all over the yard to find him.

Me: I DON'T CARE WHAT DAY IT WAS. WHY DID YOU HAVE TO GO TO THE HOSPITAL????

 

[ZZGAMAZZ]

With my parents it was more like:

Dad: I had to go the hospital last Tuesday.
Mom: No, it was Wednesday.
Dad: No, I'm sure it was Tuesday.
Mom: No, it was Wednesday because that's the day after I got my haircut.
Dad: No, it was Tuesday because I had the oil changed at Walmart in the car the day before.
Mom: I'm telling you it was Wednesday because Gertrude called me that day to tell me about how her sister broker her hip.
Dad: You talked to her the day after the hospital because the cat got out the night before and I had to chase him all over the yard to find him.

Me: I DON'T CARE WHAT DAY IT WAS. WHY DID YOU HAVE TO GO TO THE HOSPITAL????

 

[J Grant]

Comparing salary purchasing power to inflation is a standard metric and makes sense.
But housing prices.....sometimes the housing market is completely decoupled from inflation.

In the prior bust after the boom ( back 2009 -2012 ), inflation was low, around 3%, but prices of houses went down by as much as 50%.

In the recent COVID and immediate post-COVID run-up of prices, inflation rose perhaps 9-12%, but housing prices literally doubled.