Plat Changed, is appraisal still valid?

[sputnam]

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

Sure it is. Everything in an appraisal report is as of the effective date. If something changes after that, the appraiser can not be expected to just 'fix it'. Certainly, the appraiser can revise the appraisal and the appraisal report or complete a new assignment however, a fee will have been earned.

 

[TerryRohrer]

Sure it is. Everything in an appraisal report is as of the effective date. If something changes after that, the appraiser can not be expected to just 'fix it'. Certainly, the appraiser can revise the appraisal and the appraisal report or complete a new assignment however, a fee will have been earned.

You are still arguing about what is a lender decision from an appraiser's standpoint. No one is talking about blaming an appraiser or having them work for free.

 

[JTip]

Unless you are borrowing money from the Soprano family on a handshake deal, seems logical that the signed and sealed recorded documents should reflect the accurate collateral for the loan.

 

[Tom D]

Here is my lender math. Value divided by 86 lot equals $... now times 88 lots equals $.. That's new loan math, How much would it be off if you did that. The owner of the ground is now dancing with 2 more lots, and the previous value is probable lower than new value now. Win, win for everybody. But, if the land owner wants more money, then a new appraisal. The only change to really affect it is the rise, or fall, of the current market anticipation.

 

[Zoe]

I probably never would have appraised it without an extraordinary assumption the plat would be approved by the jurisidiction.

But your good to go for a new appraisal for the client.

 

[Zoe]

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?

I have to ask. Are you a licensed appraiser? If you ordered the appraisal for the lender, you can just call the appraiser back and say can you do new appraisal on the subject?

 

[BRCJR]

Sure it is. Everything in an appraisal report is as of the effective date. If something changes after that, the appraiser can not be expected to just 'fix it'. Certainly, the appraiser can revise the appraisal and the appraisal report or complete a new assignment however, a fee will have been earned.

You must not understand the question being asked.

 

[BRCJR]

Unless you are borrowing money from the Soprano family on a handshake deal, seems logical that the signed and sealed recorded documents should reflect the accurate collateral for the loan.

The legal description is what needs to be accurate/correct. The appraisal will not be recorded, will it?

 

[BRCJR]

Based upon my quick DCFA it would make 171,074-dollar difference in value using the same absorption period. This is in the lessor risk direction for the lender.
I cannot think of one single reason a lender would not or could not use the Appraisal Report "as is" so long as it is properly documented for an examiner.
Using the original Appraisal Report does not cause greater risk for the lender.
Simply, lenders are in a risk-based business.

 

[Zoe]

Always focus on real property rights on MV appraisal. The plans provided were not approved by the jurisdiction at the time of the appraisal.

Appraiser should say no problem. I can redo this.

New assignment.

This is my fee.

Would you like me to proceed? Please sign this letter of engagement.

I would have had an assumption in the original appraisal the plans would be approved or asked the client to wait until the plans were approved by the jurisdiction.