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

[Surf Cat]

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?

Good observation. Here's another one, this is from the op, my bold;

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.

So.... how does the OP know that the subject's market area is actually declining? Aside from the pending sale, the other 3 sales were from outside the subject's market area requiring location adjustments....

 

[Mark K]

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.

I understand that. My response is more to the people that seem to think that it cannot be done at all. Of course you can have two inspections with the second one being the effective date.

 

[Mark K]

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?.

And some of you lack the ability to think outside of the little box that you live in and believe that anyone that thinks differently is unethical or misleading. If we were discussing religion you'd fall into the Zealot category.

 

[J Grant]

And some of you lack the ability to think outside of the little box that you live in and believe that anyone that thinks differently is unethical or misleading. If we were discussing religion you'd fall into the Zealot category.

You failed in making your point, so once again, go on a personal attack. Sad-

 

[Mark K]

You failed in making your point, so once again, go on a personal attack. Sad-

The fact that you cannot understand a point doesn't mean it wasn't made.

 

[andrew81]

I read the first few pages of this thread and thought, so what the sale closed one day after the effective date, I would still use it as a closed sale because it is before the signature date.

Then before I posted I read the FNMA selling guide comparable sales sections which states "as of the effective date of the appraisal report."

I do not agree with changing the effective date, misleading. I would use it as a 4th comp pending sale and use the closing price.

 

[ucbruin]

And some of you lack the ability to think outside of the little box that you live in and believe that anyone that thinks differently is unethical or misleading. If we were discussing religion you'd fall into the Zealot category.

We work within the little box(es)....

 

[Zoe]

I read the first few pages of this thread and thought, so what the sale closed one day after the effective date, I would still use it as a closed sale because it is before the signature date.

Then before I posted I read the FNMA selling guide comparable sales sections which states "as of the effective date of the appraisal report."

I do not agree with changing the effective date, misleading. I would use it as a 4th comp pending sale and use the closing price.

That will not make up for putting the comp in as closed sale after original appraisal effective date, which was date of inspection. In other words, the appraiser put it in as closed sale as of the effective date of the appraisal.

It was a concurrent effective date of valuation which was the date of inspection.

They need to talk to client very frank and say tell me how you want me to fix it.

 

[Zoe]

My solution would work I think. Go back, do new SOW and and new assignment. Probably easier than trying to add new market data to original appraisal and changing the new effective date. Dublin or somebody said it is a new assignment.

New SOW. Second appraisal would be piece of cake compared to first most likely just by another site visit and new report. Explain what happened in original appraisal report in the new appraisal assignment.

I think the same in a revised report would work, but I would still go back to change the effective date of original appraisal and make other needed changes in the market conditions, or anything else that appeared different.

 

[Zoe]

Let me throw a caveat on you. What if all my listings or pending or whatever were put in as closed sales as of the date of inspection?

Would I be in trouble?