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

[J Grant]

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

Mark is offended that I was correct wrt this speficif topic - despite his examples that there may be other circumstances where it can be done, none of which were applicable - so he got all snarky about it

The "little box" is called being truthful/not misleading. Depending on the assignment, they usually have some form of standards or regs that make an appraisal of what it is, and yes it imposes limitations - similar to how a basketball court or other field/tennis sport has limitations of the boundaries and rules - sure a player can " go outside the box " and then they get a penalty for it or can lose a match because of it- the box and the rules and great play within those rules is what imake the game what it is - otherwise it is a bunch of people running around a field /court with a ball.

Professions have limitations too - an attorney can not perjure themselves, there are rules of evidence etc, an accountant can not invent or inflate numbers, etc. They all work within a box unless they want to risk their career, though some choose to do that -

 

[Zoe]

Okay make an extraordinary assumption and assume appraiser went back and said I gave most weight on a pending listing as of effective date of appraisal?

"I merely listed it as closed sale by accident.

Actually I always report all my listings as closed sales. LOL"

Do you see the complication as of effective date and how important effective date is?

I don't like that avenue.

 

[Zoe]

Dublin said just do new assignment. Get yo azz back out there and do it. New effective date.

Minor fix. Don't forget to explain previous assignment and why you are doing new assignment.

Everything is clean then.

I really think it could be cleaner on revised report, but you would need to run new market data just like a new assignment.

You would still have new effective date with another inspection.

 

[Zoe]

The fact that the client is not questioning OMV is huge. Be thankful. Get yo azz out there.

 

[Surf Cat]

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?

Misleading.....sometimes sales drop out of escrow.

 

[Zoe]

Misleading.....sometimes sales drop out of escrow.

Many times might be good answer.

 

[Zoe]

Many times might be good answer.

Buyer or seller may just change their mind.

 

[Surf Cat]

The fact that the client is not questioning OMV is huge. Be thankful. Get yo azz out there.

Why go back out? The truth will set you free.

If the OP would have just explained, for example;

"An extensive search was made to find recent sales similar to that of the subject's construction, gross living area, bedroom & bathroom count and lot size within the subject's immediate market area of Vibrant Orchards within the city of Cape Town however, extremely limited sales similar to that of the subject were found. Therefore, the appraiser utilized sales from the alternative, competitive area of Green Vines which which were the most similar available.

As of the effective date of this report, comparable #4 was a pending sale. Comparable #4 is most similar to the subject in construction, location being in the subject's immediate market area, equal in bed and bath count, and similar in lot size. Per the listing agent, there were 3 offers and is reportedly under contract for $zzz,zzz.

As of the signing date of this report, comparable #4 has closed @ $zzz,zzz which is 2.5% under list price after xx DOM. Due to the extreme lack of sales within the subject's immediate market area, the appraiser is considering comparable #4 a valid indicator of value.

So simple.....no misleading, "if" the op did their due diligence, no one is going to magically find any sales better or different than what they already have.

 

[Zoe]

Why go back out? The truth will set you free.

If the OP would have just explained, for example;

"An extensive search was made to find recent sales similar to that of the subject's construction, gross living area, bedroom & bathroom count and lot size within the subject's immediate market area of Vibrant Orchards within the city of Cape Town however, extremely limited sales similar to that of the subject were found. Therefore, the appraiser utilized sales from the alternative, competitive area of Green Vines which which were the most similar available.

As of the effective date of this report, comparable #4 was a pending sale. Comparable #4 is most similar to the subject in construction, location being in the subject's immediate market area, equal in bed and bath count, and similar in lot size. Per the listing agent, there were 3 offers and is reportedly under contract for $zzz,zzz.

As of the signing date of this report, comparable #4 has closed @ $zzz,zzz which is 2.5% under list price after xx DOM. Due to the extreme lack of sales within the subject's immediate market area, the appraiser is considering comparable #4 a valid indicator of value.

So simple.....no misleading, "if" the op did their due diligence, no one is going to magically find any sales better or different than what they already have.

Maybe, but they listed it as a closed sale as of effective date. I don't know what that market is doing.

Have you ever seen values change after a close sale very quick?

Effective date is the problem and them reporting the listing as a closed sale. Big problem.

 

[Zoe]

Some appraisers and brokers and bankers have been known do just fabricate sales and values and many other things. How old are ya'll?