Requested to reinspect with new effective date...

[Overimprovement]

Why?
Because these buyers are in that neighborhood every day looking for and at properties that would suit their needs. Those properties are considered COMPS.

They have been in perhaps ALL of the comps, that you haven't seen before today. Maybe you didn't even know they were for sale. They know
.
They also know any FSBO activity going on.

They have talked to more agents and possibly sellers in this transaction than you will.

And because it one of the few times that they are undertaking a transaction this size they are diligent in their efforts.

You have a much higher experience and expectation of market participants than I do. I was a lender for many years too.

Primary question for MOST still is "what will the payment be"? If market participants TRULY wanted to know market value, there wouldn't be all the threads on ROV's.

 

[DTB]

If market participants TRULY wanted to know market value, there wouldn't be all the threads on ROV's.

Not all appraisals are that good either.

 

[Overimprovement]

Not all appraisals are that good either.

Come on--we both know that ROV's do NOT stem from any perceived lack of appraisal quality. They stem solely from 'not hitting value'.

 

[DTB]

Sometimes (many?) the number is askew.

I've seen plenty, from homeowners, clients and when I've had an appraisal done.

Especially when out of area AMC appraisers come into play.

 

[Mark K]

You changed it from a 3% price difference to 1% for starters -

I was speaking in generalities, to the appraisers that believe that they are 'that good', not specifically to this instance, although it applies since 1-3% difference in appraised value is within a margin of error, even if some appraisers don't agree or understand the concept.

Get several appraisers to appraise nearly any home and don't give them a target value from a sales contract and you'll be lucky if they all fall within 5%, maybe not even 10%, and the reports can all be well supported, credible.

An ROV from a the client in this instance is a perfectly reasonable request and there's nothing illegal about it.

 

[Amy Perkins]

I don't think a new effective date is needed to justify $315k. That pending sale that ended up closing at $315k was the best indicator of market value as of the effective date. I probably would have called the listing agent of the pending sale to find out what the contract price is.

You can't use a sale until it is closed so this is why they wanted the new date. If it's anything like here it just went up. There are some bidding wars and it's getting real ugly out there, no one wants to sell during a pandemic. People want to buy though and move into the countryside from the urban areas. Every agent is trying to make their deal work and close it. Every agent is babying their deal as it's hard to get clients during Covid. Desperation and running for the hills... A Covid tale. They really need that new stockpile, bomb shelter or whatever... before it's too late. Make haste and get it while it's good, attitude. Everyone is very intense right now.

 

[J Grant]

I was speaking in generalities, to the appraisers that believe that they are 'that good', not specifically to this instance, although it applies since 1-3% difference in appraised value is within a margin of error, even if some appraisers don't agree or understand the concept.

Get several appraisers to appraise nearly any home and don't give them a target value from a sales contract and you'll be lucky if they all fall within 5%, maybe not even 10%, and the reports can all be well supported, credible.

An ROV from a the client in this instance is a perfectly reasonable request and there's nothing illegal about it.

I actually like a good portion of this response ! 1-3% difference in an appraisal value is another concept from the original 1-3% difference from a sales contract - of course appraisals can differ in their opinions , but for most properties how wide a variance is acceptable certainly within 1-3 % to 5% - over 5% also for complex/hard to comp out, but there comes a point when too wide a variance means one of the appraisal opinions has less credible support than the other ( a reason appraisal reviews exist ) .

As far as an ROV, the OP original post was not about a simple ROV, - client wants a new effective date and new appraisal, based on the RE agent agitating that it is now worth 315k based on the pending having closed. The pending closed after effective date, whether or not it closed before signature/report date was not divulged.

The OP might have avoided this by including more comps, both sold and pending. If an appraisal is coming in below SC price, I will spend extra time researching additional comps. I almost always include 4 closed sales on every appraisal, if possible, just makes a stronger support of the value -

 

[Fernando]

I got a call from a real estate agent who was not happy with my report. He called and was disappointed with my appraisal. I tried to reason with him but he can't accept it.
He said it doesn't help him. We're off by 9% which is significant. No waiting to see if client wants me to reconsider which is what agent wants me to do.
Looks like another agent hates me again.

 

[Chandler]

I got a call from a real estate agent who was not happy with my report. He called and was disappointed with my appraisal. I tried to reason with him but he can't accept it.
He said it doesn't help him. We're off by 9% which is significant. No waiting to see if client wants me to reconsider which is what agent wants me to do.
Looks like another agent hates me again.

You sure you didn't inspect the wrong house again due to warm weather?

 

[Fernando]

You sure you didn't inspect the wrong house again due to warm weather?

No but last night I forgot to save a file and I had to retype the darn report wasting hour of my life.
I hope I'm not getting dementia.