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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