Reporting Prior Involvement

[ZZGAMAZZ]

EPIPHANY:
I just realized that the prospective AS REPAIRED opinion of value must be based upon current market dynamics there being no way to determine how any market will change from the inspection date of the property to the anticipated completion date of the rroposed renovation. Is that correcdt????

....ditto any competing market data reported in the 1004MC that consequently should be excluded [or included with caveats that it is meaningless, although I prefer to use it in contemporaneous assignments, although the AF doesn't always agree...

 

[J Grant]

EPIPHANY:
I just realized that the prospective AS REPAIRED opinion of value must be based upon current market dynamics there being no way to determine how any market will change from the inspection date of the property to the anticipated completion date of the rroposed renovation. Is that correcdt????

?? A prospective value opinion or as X current or slightly older eff date eff inspection value opinion ?

A normal MV opinion is as of the eff datw which is the inspection date.- the value made on a HC AS IF the upgrades or repairs were completed on that eff date.

Later the lender will make sure the repairs or upgrades are completed ( the subject to was HC condition is then satisfied _)

 

[ZZGAMAZZ]

?? A prospective value opinion or as X current or slightly older eff date eff inspection value opinion ?

A normal MV opinion is as of the eff datw which is the inspection date.- the value made on a HC AS IF the upgrades or repairs were completed on that eff date.

Later the lender will make sure the repairs or upgrades are completed ( the subject to was HC condition is then satisfied _)

Seems kinda cadywampus that a prospective value based on construction that won't be completed until the future is based upon market reaction to the improvements on the physical inspection date, unless there is an approach/protocol that requires an appraiser to determine future changes in market response.

 

[sputnam]

All prospective values are based on current market data. They have to be... we can't access future market data. What the appraiser has to do with a prospective value is form an opinion of how the market will behave beyond the date of inspection. It's a projection.

 

[J Grant]

Seems kinda cadywampus that a prospective value based on construction that won't be completed until the future is based upon market reaction to the improvements on the physical inspection date, unless there is an approach/protocol that requires an appraiser to determine future changes in market response.

?? Unless your client specified a future date ( which is rare ), the inspection date is the effective date of the appraisal AS IF the remodel or repairs or upgrades are already made. Thus, we compare it to comps with which are upgraded or remodeled. The subject to box means the repairs or remodel or upgrades will have to be done and checked off as done at some future time to release funds in the loan,