Plat Changed, is appraisal still valid?

[hashtagdru]

An appraisal of vacant land for development of 86 SFR lots was ordered April of 2024. Closing was contingent on a city approved plat, which has just been finalized in November. The city plat has 88 lots compared to the now dated appraisal assuming 86 lots. Due to the change in number of lots and the passage of time, would this appraisal be valid? If market conditions could be supported showing the same or better would that allow this report to be used still?

 

[alebrewer]

I would think that would be an internal decision to be made by the bank's risk management team? That said, I would argue that, since one of the assignment elements has changed - namely the plat and number of lots - that the original appraisal would most likely not adequately address the current plat.

 

[BRCJR]

I think if it is discussed and documented internally the opinion of value could be used.

On 88 vs 86 lots there is a margin of error that is insignificant.

Again, document and upload to the digital loan software, for example, Synergy, a memo regarding the small change and move on.

 

[RSW]

I think if it is discussed and documented internally the opinion of value could be used.

On 88 vs 86 lots there is a margin of error that is insignificant.

Again, document and upload to the digital loan software, for example, Synergy, a memo regarding the small change and move on.

I agree.

 

[Elliott]

How many years to absorb 88 lots? Give me the discount rate and I'll look up the factor in my Ellwood tables.

 

[sputnam]

An appraisal of vacant land for development of 86 SFR lots was ordered April of 2024. Closing was contingent on a city approved plat, which has just been finalized in November. The city plat has 88 lots compared to the now dated appraisal assuming 86 lots. Due to the change in number of lots and the passage of time, would this appraisal be valid? If market conditions could be supported showing the same or better would that allow this report to be used still?

No one can be expected to be responsible for changes that happen after the appraisal is completed and the report has been delivered.

 

[BRCJR]

No one can be expected to be responsible for changes that happen after the appraisal is completed and the report has been delivered.

I do not think that is the issue......

 

[Red Flint]

If market conditions could be supported showing the same or better would that allow this report to be used still?

I wouldn't use it. Best to have the appraiser issue a revision updating the effective appraisal date and legal descriptions, should be a much lower fee. No free lunch though.

Oh and,

Oklahoma, where the wind comes sweepin' down the plain
And the wavin' wheat can sure smell sweet
When the wind comes right behind the rain.
Oklahoma, Ev'ry night my honey lamb and I
Sit alone and talk and watch a hawk
Makin' lazy circles in the sky.

We know we belong to the land
And the land we belong to is grand!
And when we say
Yeeow! Ayipioeeay!
We're only sayin'
You're doin' fine, Oklahoma!
Oklahoma O.K.

 

[BRCJR]

I wouldn't use it. Best to have the appraiser issue a revision updating the effective appraisal date and legal descriptions, should be a much lower fee. No free lunch though.

Oh and,

Oklahoma, where the wind comes sweepin' down the plain
And the wavin' wheat can sure smell sweet
When the wind comes right behind the rain.
Oklahoma, Ev'ry night my honey lamb and I
Sit alone and talk and watch a hawk
Makin' lazy circles in the sky.

We know we belong to the land
And the land we belong to is grand!
And when we say
Yeeow! Ayipioeeay!
We're only sayin'
You're doin' fine, Oklahoma!
Oklahoma O.K.

So you would require the entire verbiage to be changed? Everywhere the 86 is mentioned must be changed to 88.

The entire DCFA will have to be redone. Taxes, commissions, holding costs, etc.

I suggest you speak with a regulator and see if they think using the Appraisal Report, without modification, would lead to an unsafe or unsound lending decision.

Matter of fact, I will be with them next week, I'll ask them.

 

[Sadie]

An appraisal of vacant land for development of 86 SFR lots was ordered April of 2024. Closing was contingent on a city approved plat, which has just been finalized in November. The city plat has 88 lots compared to the now dated appraisal assuming 86 lots. Due to the change in number of lots and the passage of time, would this appraisal be valid? If market conditions could be supported showing the same or better would that allow this report to be used still?

What was the effective date? If it was back in April, then yeah it is still valid. Whether or not it can be used is up to the UW. Appraisals don't really have expiration dates; they are a value estimate as of a specified time.