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

[gorillakimchi]

I met a similar situation last month. Due to the recent price jump up, I can't appraisal the subject value at contract price. After I called several pending comps' realtors, I was heard one similar pending comp is sold higher price than subject purchase price and will be closed in a few days late. I called AMC/lender right away and request for extension. On that comp closing date, I do the inspection in the morning and submitted the report late afternoon when I saw MLS turn to sold.

Good to know. Maybe your comment will help me someday.. Thank you

 

[gorillakimchi]

Just go back and do interior again. You already have the report pretty much done. Change effective date with new comp and explain everything on the prior appraisal effective date and new appraisal report with new signature.

You will be fine. It keeps everything clean to anybody looking at the prior appraisal report and the current appraisal report. Full disclosure.

Remember you weighted that new comp heavily.

Haha, right!!! Why I couldn't think about this lol. It's annoying to go back but very straight forward way to solve this problem.

 

[Mark K]

Cert #2 says a complete interior and exterior inspection

I believe that a complete interior and exterior inspection was performed. I must have missed the part in the Certs where it said that both interior and exterior inspections were done on the same date.

There's been quite a few times in the past where I went back to a home on a later date for a photo, usually weather or camera related. I simply stated in the report that the subject was inspected on two days and the effective date was the second. I didn't give them a reason and they didn't ask. They don't care.

It's a bit late to do it in the middle of a review but normally it's no big deal. If he'd done it prior to submitting it because a comp closed a day later, so what?

Some of you guys make waaaay to much out of this stuff.

 

[ucbruin]

Ethics is over-rated and a sign of weakness....

 

[Zoe]

Haha, right!!! Why I couldn't think about this lol. It's annoying to go back but very straight forward way to solve this problem.

I know you didn't or don't want to go back.

I got that part. I was merely explaining how would have probably handled it.

 

[Zoe]

What do you have as effective date? Concurrent, retrospective and prospective?

Effective date is related to the forces that influence real property value which are constantly changing.

They can change in a few days very quickly.

On this particular situation, either your client had a problem with it or possibly someone like a GSE had a problem with it.

Definition of CONCURRENT

operating or occurring at the same time; running parallel; convergent; specifically : meeting or intersecting in a point… See the full definition

www.merriam-webster.com

 

[J Grant]

I believe that a complete interior and exterior inspection was performed. I must have missed the part in the Certs where it said that both interior and exterior inspections were done on the same date.

There's been quite a few times in the past where I went back to a home on a later date for a photo, usually weather or camera related. I simply stated in the report that the subject was inspected on two days and the effective date was the second. I didn't give them a reason and they didn't ask. They don't care.

It's a bit late to do it in the middle of a review but normally it's no big deal. If he'd done it prior to submitting it because a comp closed a day later, so what?

Some of you guys make waaaay to much out of this stuff.

Some of us make way too much of USPAP and not being misleading and fudging dates of an interior inspection that we signed was the effective date?.

Returning later to take a subject photo because of rain is not the same as changing the subject's effective inspection date—and we can disclose that we took another photo later because of the rain.
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If an appraiser wants to use a sale that closed after the effective interior inspection date, then ask the client about setting a new date of inspection and let them decide.

 

[Dublin ohio]

I believe that a complete interior and exterior inspection was performed. I must have missed the part in the Certs where it said that both interior and exterior inspections were done on the same date.

There's been quite a few times in the past where I went back to a home on a later date for a photo, usually weather or camera related. I simply stated in the report that the subject was inspected on two days and the effective date was the second. I didn't give them a reason and they didn't ask. They don't care.

It's a bit late to do it in the middle of a review but normally it's no big deal. If he'd done it prior to submitting it because a comp closed a day later, so what?

Some of you guys make waaaay to much out of this stuff.

Apple and oranges comparison. Read the op. The OP did what they did to "account" for a mistake in their original report that wasn't caught by the lender until a month later.

 

[Zoe]

Your client would pretty much have to tell you if you could do revised report or if it needs to be new assignment.

It really doesn't matter much to me but I am not your client. You do have new SOW.

If you do new assignment, you still have to explain in new assignment and your prior services and new effective date with new signature.

If you do revised report with new effective date, you still have to explain in new report.

That is between you and client as far as I care and keep them happy. USPAP may say different.

Read USPAP on it and just go back with new effective date, new signature date. Everything explained. If your client is happy with retrospective value opinion? It would fly without changing the effective date. I doubt that will happen.

 

[Jayjay25]

I’m curious by what percentage that recent sale increased the estimate of value. Does it follow any market trend or is it a sale with an appraisal waiver that is juicing the market?