Purchase

[djd09]

Sales Contract Information​

All financing data and sales concessions for the subject property that will be or have been granted by anyone associated with the transaction must be disclosed to the appraiser, as appropriate. Typically, this information is provided in the sales contract. Therefore, the lender must provide, or ensure that the appraiser is provided with, a copy of the complete, ratified sales contract and all addenda for the property that is to be appraised.

 

[J Grant]

USPAP says that any agreement or contract must be analyzed ( and if none is provided, document efforts to obtain one )

The agreement is that after an appraisal is done, the parties will agree on a purchase price. END OF STORY. Report what you are provided with and appraise the property.

 

[Surf Cat]

USPAP says that any agreement or contract must be analyzed ( and if none is provided, document efforts to obtain one )

The agreement is that after an appraisal is done, the parties will agree on a purchase price. END OF STORY. Report what you are provided with and appraise the property.

What if one of the parties (the seller or the buyer) does not agree with the appraised value? I mean....due to no agreement being made.

Is there an agreement between both parties within the purchase contract that the appraised value is going to be "the number" and final purchase price?

Like the op, I've never come across a purchase assignment where I was the decider of the purchase price. I've done a few pre-listing appraisals or for sale by owner appraisals on the GP form.

The Op does say this is a conventional lending assignment.....

 

[alebrewer]

Wouldn't this be a pre-listing appraisal?

Or at least a pre-contractual appraisal.

According to USPAP, appraisers are required to analyze all agreements of sale, including purchase agreements, to ensure compliance with professional standards.

Well, it's clear with a caveat...


Seems to me that the intended use of a pre-contractual appraisal might be different than the intended use of an appraisal for mortgage lending decisioning...

 

[The Bob]

Wouldn't that be a change in the intended use?
At the least I would include that in the SOW

 

[J Grant]

What if one of the parties (the seller or the buyer) does not agree with the appraised value? I mean....due to no agreement being made.

Is there an agreement between both parties within the purchase contract that the appraised value is going to be "the number" and final purchase price?

Like the op, I've never come across a purchase assignment where I was the decider of the purchase price. I've done a few pre-listing appraisals or for sale by owner appraisals on the GP form.

The Op does say this is a conventional lending assignment.....

Who cares? We did the appraisal for ( a party or a lender, not sure who their client is )
What happens afterward is not our problem.
I Did an assignment like this years ago - I turned it in ( for a lender ) and never heard anything further about it.

Unless the client says to the appraiser that this is for a listing purpose, then it is not the case....of course I am responding third hand over the internet without having spoken to anyone etc - as we all are- working with limited information.

 

[djd09]

Contract Changes After the Appraisal is Completed​

If the contract is amended after the effective date of the appraisal in a way that does not affect the description of the property, then the lender is not required to provide the amended contract to the appraiser nor obtain a revised appraisal. Some examples of amendments that do not require the lender to provide the amended contract nor obtain revisions to the already-completed appraisal report include:

• sale price,

let that sink in...

 

[ZZGAMAZZ]

I agree with this. However, usually when there's no executed contract, there's typically "a number".... an agreement of sorts between the buyer and the seller.

There's no number here...

Wouldn't this be a pre-listing appraisal?

Robot dude has a point. As much as he slams USPAP.....


According to USPAP, appraisers are required to analyze all agreements of sale, including purchase agreements, to ensure compliance with professional standards.

And....

It is recommended that appraisers review the purchase agreement after forming a preliminary value opinion to avoid bias towards the contract price.

What purchase agreement? What contract price? There is none....

This is like a sly, two for one assignment.

Hold Up. A purchase agreement with an appraisal contingency would describe that in the contract, not just leave it blank. BTW, will the UAD form creator even accept an apprisal for purchase without a purchase price indicated on the appraisal report?

 

[gregb]

Hold Up. A purchase agreement with an appraisal contingency would describe that in the contract, not just leave it blank. BTW, will the UAD form creator even accept an apprisal for purchase without a purchase price indicated on the appraisal report?

There is a hypothetical purchase price, depending or contingent upon the value conclusion in the appraisal.

 

[ZZGAMAZZ]

That holds true for any report. No contract is (or should be) a non-issue. If an appraiser can't complete a report due to lack of a purchase contract (bullseye), he should find other work.

if the offer price was omitted, I presum that sales concessions, etc., etc., were also unavailable; I'm too lazy to look but I don't think the form converter will accept a purchase report with those sections left blank>