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

[Raven59]

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..

I was trying to be nice and not say that was not a really smart thing to do. You are correct, the reviewer was probably being kind. OP created a misleading report as presented.

 

[Surf Cat]

I submitted a revised report by changing the effective date of the report from 02/28/2024 to 03/01/2024

OMG

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?

Have you read USPAP? Holy cr*p....just read the first paragraph of the preamble....then the whole thing....twice.

 

[Sadie]

This is pretty funny coming from Ms. 50 Shades of Gray (areas) that will parse and dissect every word, phrase, or sentence to try to convince the world that Trump is guilty of EVERYTHING BAD that has happened in the past 50 years and try to convince everyone that Joe Biden is in control of his mental faculties.

Kind of off topic here. Maybe float over to the Watercooler.

 

[MMing5000]

View attachment 86589

Gosh! i've never noticed that line after all these years of appraising. Shame on me! However, is that line appropriate when we are preparing retroactive appraisals or prospective appraisals for Lenders?

one closed sale does not make a value...would you same folks be turning cartwheels to extend dates and change eff dates if the very recent day later sale sold for LESS than the sC price you are trying to hit? Just to be clear about what you are doing and why. I dont' see any price trend long term other than one sale or so as an increasing market. Individual sales, high and low, happen in any market cycle.

Answer, no you can not change the effective date just to make a value work (or for any other reason) It is what it is. Use the sale as a pending as of eff date and explain it closed for X price the day after the effective date and is considered as a value indicator in the reconciliation.. If the UW still wants another sale then go find it - maybe it will support a value and maybe it won;t.

According to USPAP, having the effective date aligned with inspection date is not set in stone.

 

[MMing5000]

There is nothing in USPAP that ties the effective date to the inspection date. However, the F/F forms have this hard wired in and without an option to modify so you are stuck on that front.

One possible option is to revise your report to show that post-effective date sale as a pending. In the comments you can note the date it closed and how it factored into your indicated value via the SCA.

Thank you for the great response - you are absolutely correct regarding USPAP does offer flexibility in changing the effective date when necessary. Most people think it is set in stone that effective date = inspection date.

 

[Sadie]

Gosh! i've never noticed that line after all these years of appraising. Shame on me! However, is that line appropriate when we are preparing retroactive appraisals or prospective appraisals for Lenders?

According to USPAP, having the effective date aligned with inspection date is not set in stone.

True, but what does your SOW say? If you are doing a F/F compliant appraisal, then its the inspection date. If you want to use that (pending) sale, pretty simple to re-inspect with a new effective date. I bet you don't want to go to appraiser jail. I would have handled this by pointing out the sale closed one day after the inspection date and it does support the value. Unless the reviewer is kind, I bet the state may already be aware of your appraisal. If they are kind, learn from this.

 

[Sadie]

Gosh! i've never noticed that line after all these years of appraising. Shame on me! However, is that line appropriate when we are preparing retroactive appraisals or prospective appraisals for Lenders?

According to USPAP, having the effective date aligned with inspection date is not set in stone.

f you are doing a retroactive you still need to provide inspection date.

 

[Surf Cat]

Gosh! i've never noticed that line after all these years of appraising. Shame on me! However, is that line appropriate when we are preparing retroactive appraisals or prospective appraisals for Lenders?

Retrospective or prospect appraisals are typically done on the GP or 1004 URAR.

Thank you for the great response - you are absolutely correct regarding USPAP does offer flexibility in changing the effective date when necessary.

Uhm...I don't believe that's what Mr. Hassler stated.

According to USPAP, having the effective date aligned with inspection date is not set in stone.

Okay.....but you admittedly changed the effective date to accommodate the pending sale. You're still trying to justify that fact and don't really seem to be bothered or grasp the misleading nature of that move.
I mean....wow.

 

[Fernando]

Why don't y'all be proactive or manipulative like Fernando.
If I see a pending sale about to close, I call the listing agent and he/she tells me the story if it will close soon.
Usually if next day, agent tells me the sales price.
I either wait til sales close and wait to use closed sale for that effective date if that's the best comp.
If need to submit report before close of escrow for that pending sale, I can still use that pending sale and indicate in my report that agent indicated anticipated closed price.
Given the circumstances, appraiser reconciles the appraised value whether closed or pending.
Thus, you don't need to deal with this date problem with the reviewer.

 

[John Hassler]

Thank you for the great response - you are absolutely correct regarding USPAP does offer flexibility in changing the effective date when necessary. Most people think it is set in stone that effective date = inspection date.

Just to clarify, I was not suggesting changing the effective date was the appropriate solution to your situation. A new effective date makes it a new assignment. It would require you to go through all the steps necessary to complete the assignment including a new inspection if a URAR or similar F/F SOW.

As far as USPAP is concerned an inspection is not required in which case there would be no inspection date.