Date of Sale: Contract date or Closing date?

[residentialguy]

You could always have done a final drive by inspection of the subect on August 18, 2012...which would make the effective date of the appraisal after the closing of the comp :new_all_coholic:

 

[Pat Butler]

If it was for Fannie then the inspection (including interior) date would have to match the effective date. He'd have to go inside again.

 

[residentialguy]

Sometimes you have to do the interior and exterior at separate times. Where does it say you have to do it all at once?

 

[Pat Butler]

The term effective "date" actually is singular, not plural to encompass multiple days.

 

[residentialguy]

The term effective "date" actually is singular, not plural to encompass multiple days.

The effective date would be the last day of the inspection.

 

[residentialguy]

The effective date means that's the day your opinion of value applies to, but you opine that value at a later date and include all info up to day that you opine value. Often I go to my comps at a later date. I don't know the value until weeks later sometimes based upon searches of the market after the effective date. The UAD dates of comps are months, not singular dates.

 

[Riick]

So the effective date for a driveby is when I go inside and inspect the interior? :laugh:
Would you believe that occasionally, I have to turn my head, so I don't see a property again, before I send out its report?

 

[residentialguy]

This thread (and others like it) tells me that I'm going to have to come up with yet another FNMA blurb explaining their idiotic "effective date" requirement to put on top of all the other idiot blurbs explaining how the appraisal process is different in real life.

 

[andrew81]

If a contingent sale was offered for sale during the defined exposure time of the subject, and the contract date is pre-effective date, I do consider the comparable as an under contract listing. I consider it as a contract listing because it was active and competing with the subject property during the defined exposure time, and the contract price was agreed upon before the effective date of the report.

If the contract date was pre-exposure time, say the exposure time is 3 months and the contract date was 5 months ago with a contingency of sellers finding a new home, I do not consider it as competing with the subject because it was not offered for sale during the exposure time. Also I do not consider the contingent sale as a closed sale because it has not closed.

 

[Lee Lansford]

Ok. Here is a real life situation:
- effective date August 14, 2012;
- Comp's contract date - May 28, 2012;
- Comp's closing date - August 17, 2012.
The lender says, the appraiser cannot use this comparable in the report as a sale, since it was closed AFTER the effective date of the appraisal and as of the effective date it was an active listing.
Would you agree with the lender?

I might include (i.e., comp #4 etc.) it as a pending sale as that was the status as of the effective date.