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

[Dublin ohio]

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.

So you put off your inspection until after the pending sale closes?

 

[Surf Cat]

So you put off your inspection until after the pending sale closes?

I believe it's called the make it work approach.....

 

[Fernando]

So you put off your inspection until after the pending sale closes?

Yes and no. It depends if I can time it right and get the report to the client by deadline.

 

[Tom D]

most clients will give you the extra time, if you tell them you need this sale to prove your wonderful value. oh wait, some of the plantation workers don't talk to the masta.

 

[sputnam]

It's a new assignment. What you do about your fee is a business decision.

 

[J Grant]

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.

it says on the 1004 form that the effective date is the inspection date and you signed that you did what you said.

 

[ucbruin]

So you put off your inspection until after the pending sale closes?

If you could....
If it's practical....
If it's achievable....
Why wouldn't one wait for the pending sale to close before inspecting the subject....

What if a person with knowledge regarding residential appraising asked you to set the appointment after a pending sale closes (a day or 2 away)....
Wouldn't you wait....
Depending on the closing date, I would set the appointment date after closing....

Of course that's a lot of "ifs"....

 

[J Grant]

If you could....
If it's practical....
If it's achievable....
Why wouldn't one wait for the pending sale to close before inspecting the subject....

What if a person with knowledge regarding residential appraising asked you to set the appointment after a pending sale closes (a day or 2 away)....
Wouldn't you wait....
Depending on the closing date, I would set the appointment date after closing....

Of course that's a lot of "ifs"....

lol - what if the pending sale closes lower than the SC price of the subject -would you still use it?

 

[ucbruin]

lol - what if the pending sale closes lower than the SC price of the subject -would you still use it?

Great question....
As aways....
DEPENDS....

 

[J Grant]

Great question....
As aways....
DEPENDS....

Lol - it depends if the sale closed lower than the subject SC price, but that pending would 100% be used if it closed at, or higher than the SC price.

All this contortion is appraisers putting their thumb on the scale to hit the SC price. That said, it is not fraud or misleading to wait until a sale closes to inspect a property. Just a bit desperate - I would only do it if the subject has such unique physical characteristics there are scarce closed similar sales comps.