On purchase transactions, can effective date of appraisal be changed from inspection date?

[J Grant]

Effective date is very important in the valuation process as several have noted.

Obviously client is having a problem with it. Seems like small fix to me.

Is the property occupied or vacant? Doesn't matter. Easy fix.

Go back. Document everything in revised report.

New signature date. New effective date.

Value does not seem to be an issue here. Small problem.

The client is not having a problem with the eff date. go back and read the OP posts. The appraiser wants to change the effective date to accommodate a sale that closed a day later.

 

[Dublin ohio]

The form says..."date of inspection...".

Cert #2 says a complete interior and exterior inspection

 

[Raven59]

I think it would be helpful if people could indicate whether they are using a form report when they ask for help, as not everyone uses that format. If it's not too much trouble, would you consider revisiting the property to adjust the inspection/effective date (if using a form)? You are taking a risk by moving the effective date forward unless you are basing the value opinion on an assumption. Instead, you could label it as pending and explain in the comments that it was closed the next day. The priority is the pending date, not the recording date. That's when the terms were agreed upon not the recording date. Also, include your comments on other sales that were available before the effective date and were not relevant or comparable. It is not uncommon in my area for a closing to occur on one day and the attorney does not record until days or weeks after. Were closing and recording dates the same?

 

[Zoe]

The client is not having a problem with the eff date. go back and read the OP posts. The appraiser wants to change the effective date to accommodate a sale that closed a day later.

Okay. You verified my stance.

For current purchase transactions, the effective date of an appraisal is typically fixed to the date of the appraisal inspection, where the value opinion in the appraisal report is based on the conditions of the property observed on that date.

My question is, when can the effective date of the appraisal be adjusted to a date shortly after the inspection date if necessary, but before the report signature date?

As we are all painfully aware, the real estate market has been dead slow, or at least much slower than anticipated where similar comparables are scarce.

My situation involves a complex appraisal assignment completed over a month ago with an appraisal inspection and effective date of 02/28/2024 and report completion signature date of 03/05/2024.

Having researched and prepared the report in March, i had unknowingly used a comp, which had a closing date of 02/29/2024, which is 1 day after my inspection date which was also the effective date of the appraisal. This comp happens to be the best comp to support value in terms of similarity, recentness of sale and proximity to the subject property, where as the other 3 comps are dated sales that required timing adjustment in a declining market and also location adjustments.

The reviewer had requested me to provide a new comparable with closing date before the effective date of the report. I submitted a revised report by changing the effective date of the report from 02/28/2024 to 03/01/2024, with an explanation that similar luxury comps are very limited and that particular comp is the best value indicator in a changing market.

The reviewer rejected my revision with explanation and said that i can not arbitrarily change the effective date of the appraisal and must provide a new comp.

Short of strangling this reviewer in my mind, how can i offer a rebuttal to let the reviewer know what i think, or how can appease this reviewer to accept the report with the revised effective date which is before the original signature date?


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JGrant, you read the OP. I bolded the Original post.

 

[Zoe]

I am offering the OP an easy fix that should fly with colors of a rainbow. I am not the client or the reviewer of the client.

I am not the borrower. I am not the seller. I have no connection into this transaction.

 

[Dublin ohio]

I am offering the OP an easy fix that should fly with colors of a rainbow. I am not the client or the reviewer of the client.

I am not the borrower. I am not the seller. I have no connection into this transaction.

Your fix is a new report. Not a revised report. New effective date, new inspection date does not equal a "revised" report. But either way. You have 2 reports with different effective dates but using the same comps.

 

[J Grant]

For current purchase transactions, the effective date of an appraisal is typically fixed to the date of the appraisal inspection, where the value opinion in the appraisal report is based on the conditions of the property observed on that date.

My question is, when can the effective date of the appraisal be adjusted to a date shortly after the inspection date if necessary, but before the report signature date?

As we are all painfully aware, the real estate market has been dead slow, or at least much slower than anticipated where similar comparables are scarce.

My situation involves a complex appraisal assignment completed over a month ago with an appraisal inspection and effective date of 02/28/2024 and report completion signature date of 03/05/2024.

Having researched and prepared the report in March, i had unknowingly used a comp, which had a closing date of 02/29/2024, which is 1 day after my inspection date which was also the effective date of the appraisal. This comp happens to be the best comp to support value in terms of similarity, recentness of sale and proximity to the subject property, where as the other 3 comps are dated sales that required timing adjustment in a declining market and also location adjustments.

The reviewer had requested me to provide a new comparable with closing date before the effective date of the report. I submitted a revised report by changing the effective date of the report from 02/28/2024 to 03/01/2024, with an explanation that similar luxury comps are very limited and that particular comp is the best value indicator in a changing market.

The reviewer rejected my revision with explanation and said that i can not arbitrarily change the effective date of the appraisal and must provide a new comp.

Short of strangling this reviewer in my mind, how can i offer a rebuttal to let the reviewer know what i think, or how can appease this reviewer to accept the report with the revised effective date which is before the original signature date?


.

I read this again and frankly, this reviewer can or the client can report you to the state board - you are in no position to unleash on the reviewer.
you were WRONG -

. I submitted a revised report by changing the effective date of the report from 02/28/2024 to 03/01/2024, with an explanation that similar luxury comps are very limited and that particular comp is the best value indicator in a changing market

The reviewer asked you to provide an additional comp that closes before the correct eff date, and what did you do instead ?
You lied about the effective date by changing it. You will be lucky if they do not file a complaint. your reasoning for doing it is inane..

 

[Zoe]

Your fix is a new report. Not a revised report. New effective date, new inspection date does not equal a "revised" report. But either way. You have 2 reports with different effective dates but using the same comps.

I agree whole heartedly. J Grant got me sidetracked.

Especially after new inspection. And new effective date.

Some things will need to be updated in new assignment.

I would still likely do it no charge. Disclose prior services on subject.

 

[J Grant]

I agree whole heartedly. J Grant got me sidetracked.

Especially after new inspection. And new effective date.

Some things will need to be updated in new assignment.

I would still likely do it no charge. Disclose prior services on subject.

Read post 27 !!!! and read the original post -again.
the appraiser CHANGED an effective date a month after the report was finished and after the report was already accepted by the client.

Then, they re-submitted the report with the new aff date-. As if the client wouldn't care ? The client saw it and called them on it. They will be lucky to escape a board complaint.

We can't; just decide on our own to do new reports and make new eff dates without client permission, and if we make a new eff date and say we did an interior inspection on that date, then we would have to return and do the interior inspection.

 

[Zoe]

Don't get me wrong. I would want paid for original assignment. I just would not charge for new assignment.

New invoice would say "no charge". Or old invoice would say "no charge". That is me.

I have learned some fights are not worth picking.

Probably "no charge" old invoice. New assignment invoice. Charge is "$this"

Whatever I charged on original invoice would be my charge on new invoice and assignment.