Plat Changed, is appraisal still valid?

[BRCJR]

Asking the appraisers forum if an appraisal is still valid 6 months after the effective date is not really the best way to get the answer. There is no expiration date on an appraisal. It is as of the effective date. Whether or not a lender can reliably use the appraisal is a different question and is better asked of lending professionals.

Strange, I never saw were anyone questioned the age of the appraisal. Since the OP did not ask about the age of the appraisal, why toss a few variables into the equation to make it look like others are not in tune to the topic?

 

[Sadie]

Strange, I never saw were anyone questioned the age of the appraisal. Since the OP did not ask about the age of the appraisal, why toss a few variables into the equation to make it look like others are not in tune to the topic?

Read the original post. "Due to the change in number of lots and the passage of time" You seem to have a persistant reading comprehension problem.

 

[BRCJR]

It is not that hard to revise this type of report once the DCF is established in Excel. Sometimes the developer complains about the (conservative) absorption rate or future lot sale prices. It is best to have a up-to-date and correct Appraisal Report in case of litigation that may occur years down the road due to unexpected circumstances.

You are predicting a different intended use? (litigation that may occur years down the road due to unexpected circumstances)
Not sure how I see that impacting a current lending decision. Current Intended Use and Intended User have nothing to do with the years into the future.
I still stand by my position, two lots one way or the other do not create an environment in which it could be ascertained the lender did not make a wise lending decision.

That is all an appraisal for a lending decision is about.

 

[BRCJR]

Read the original post. "Due to the change in number of lots and the passage of time" You seem to have a persistant reading comprehension problem.

This is (6 months after the effective date) what I read in your comment and did not see in the OP.

There is no passage of time, in and by itself, that invalidates an appraisal.

 

[Sadie]

This is (6 months after the effective date) what I read in your comment and did not see in the OP.

There is no passage of time, in and by itself, that invalidates an appraisal.

Did you read the whole post, or just zero in on the 6 month comment? Because if you did you would see that I was in agreement with you (horror!)

 

[JTip]

Is the loan based on the appraisal or the deed description? Is the appraisal simply routine underwriting and what is stated on the deed is collateral?

 

[BRCJR]

Is the loan based on the appraisal or the deed description? Is the appraisal simply routine underwriting and what is stated on the deed is collateral?

The loan amount is decided by the contract price or appraised value, whichever is the lessor.
The collateral is determined by the legal description, not from the appraisal, but from the metes and bounds of the property. In a case like this, a subdivision, the parcel description would be of the whole in the "as is" state. As the lots are sold the "new" legal description of the lot would be released from the whole.

 

[Amy Perkins]

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 its not the truth, so not valid.

 

[BRCJR]

Well, well, well, just had an examiner tell me it would be acceptable for a lender to use the value opined, in the OP case, for a lending decision. The character of the property has not significantly changed and the value would still be considered reasonable and could be relied upon.

Loan the money making sure the DOT includes the correct legal description and move on.......