Purchase

[ZZGAMAZZ]

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

If the entire appraisal industry agrees that the appraiser shouldn't need to be privy to the contract price, seems that software should exist that would conceal the purchase price until after the appraisal report is signed--although instinctively I'm already thinking of ways to circumvent that challenge...LOL

 

[gregb]

The requirement is to analyze the contract, if there is not a contract price, until the appraisal is completed, what's the problem? Subject to appraisal.

 

[ZZGAMAZZ]

The requirement is to analyze the contract, if there is not a contract price, until the appraisal is completed, what's the problem? Subject to appraisal.

Yep, as would be expressed in writing and ratified, although te OP had to interview the listing agent to learn that info.

 

[sputnam]

I received an 1004 conventional purchase order and there is no agreed purchase price on the purchase agreement. The buyer advised they are waiting on the appraisal to set a contract price. Should I just note this as described? I have never received a purchase order without a purchase price.

Yes. You are required to review and analyze the purchase agreement. You are required to report a summary of the results of your analysis.

 

[Tom D]

If there is no written agreement of sale, then being a smart a*s, is it really a refi or other use to be noted at this point, to determine a value for purchase. So you get the agreement of sale dated after the appraisal. Typically, parties wanted the appraisal before an agreement for themselves to determine a sale price, but not for the bank. This should have been ordered before the loan process, not during. Are you getting extra to revise the appraisal with new info. And i assume you state that the agreement of sale will come after your appraisal. I have never seen it done this way lender first, then agreement. I'm assuming the buyer and seller know each other, and maybe not an arm's length transaction, no MLS either.

Notice the word 'must', but it however doesn't say at what point of the appraisal time frame.

Contract Section​

The lender must provide the appraiser with a copy of the complete, ratified contract. The appraiser must indicate whether an analysis was or was not performed on the contract for sale. If an analysis was performed, the appraiser must provide the results of the analysis. If an analysis was not performed, the appraiser must provide an explanation why the analysis was not performed.

For appraisals required to be UAD compliant, the appraiser must also indicate the type of sale for the transaction. The appraiser may report any other relevant information in this field or elsewhere in the report regarding the sale type, including whether more than one sale type applies.

The appraiser must

• enter an amount in the Contract Price field if the Assignment Type is a purchase transaction. Contract price must be the same as the sales price for the subject property in the Sales Comparison Approach section;
• enter a contract date if the Assignment Type is a purchase transaction; and
• indicate if the property seller is the owner of record

 

[J Grant]

If there is no written agreement of sale, then being a smart a*s, is it really a refi or other use to be noted at this point, to determine a value for purchase. So you get the agreement of sale dated after the appraisal. Typically, parties wanted the appraisal before an agreement for themselves to determine a sale price, but not for the bank. This should have been ordered before the loan process, not during. Are you getting extra to revise the appraisal with new info. And i assume you state that the agreement of sale will come after your appraisal. I have never seen it done this way lender first, then agreement. I'm assuming the buyer and seller know each other, and maybe not an arm's length transaction, no MLS either.

Notice the word 'must', but it however doesn't say at what point of the appraisal time frame.

Contract Section​

The lender must provide the appraiser with a copy of the complete, ratified contract. The appraiser must indicate whether an analysis was or was not performed on the contract for sale. If an analysis was performed, the appraiser must provide the results of the analysis. If an analysis was not performed, the appraiser must provide an explanation why the analysis was not performed.

For appraisals required to be UAD compliant, the appraiser must also indicate the type of sale for the transaction. The appraiser may report any other relevant information in this field or elsewhere in the report regarding the sale type, including whether more than one sale type applies.

The appraiser must

• enter an amount in the Contract Price field if the Assignment Type is a purchase transaction. Contract price must be the same as the sales price for the subject property in the Sales Comparison Approach section;
• enter a contract date if the Assignment Type is a purchase transaction; and
• indicate if the property seller is the owner of record

Where are these "must" comments coming from?
Is it from a section of requirements for the lender ?

The appraiser can not force a lender, or buyer or other parties to do anything. If all they provide is a contract with an agreement that the price be negotiated after the appraisal, so be it. Our only obligation is to disclose that in the appraisal report.

The appraiser can ask parties or RE agent if buyer and seller knows each other . Even if they do, so what? We can appraise properties that have non-arm's-length contracts.

 

[Tom D]

Fannie B4-1.3-02, Subject and Contract Sections of the Appraisal Report (06/04/2025)

 

[alebrewer]

Where are these "must" comments coming from?
Is it from a section of requirements for the lender ?

J... come now.

 

[J Grant]

1. Selling Guide /
2. Part B: Origination Through Closing
3. Part B appears to be a section of the selling guide geared toward lenders. We are not responsible for what the lender does wrt fulfilling their requirements.

 

[alebrewer]

Wowsa...