Retrospective Appraisal report

[keuler]

Is this allowed? A comparable sale dated after the date of value given?

I am "reviewing" an appraisal for an internal bank purpose. It is a retrospective appraisal on new construction. The appraiser dates the value as of 9-3-09, but uses a comparable after the date. The appraisal effective date is 11-13-09. Note, in the last two months sales have picked up in this market.

I am going to send the appraisal back either way, as the appraiser only uses comparable from within the subject development. This may be an in-house loan, but we do require a comparable from a competing neighborhood as we don't believe it to represent an accurate market value if the developer controls all lot sales to a builder. (a developer controlled development) If it is, I will not bring it up. If it is not allowed I will ask for a different comparable.

And to those who have jumped on me before. I have taken appraisal classes, I could become licensed but will not. I try to keep the word review out of what I do as I am more compliance. If anything I would be an internal Appraiser manager for the bank. We are a small community bank who did not want to go the AMC rout so I got the job.

 

[hastalavista]

Is this allowed? A comparable sale dated after the date of value given?

I am "reviewing" an appraisal for an internal bank purpose. It is a retrospective appraisal on new construction. The appraiser dates the value as of 9-3-09, but uses a comparable after the date. The appraisal effective date is 11-13-09. Note, in the last two months sales have picked up in this market.

I'm confused by your wording.
Effective date equals the date of valuation in the common understanding of the terms.

So is the effective date 9/3 or 11/13?

Now, as to using a comp after the effective date, again, I'm not sure what you mean?
Was it a pending or active list before and has since closed? Actives and pendings can be meaningful market information to use in the valuation analysis.
However, if it was not available for consideration as of the effective date, its use "after the fact" should be given very little weight/consideration (unless it is in response to some follow-up request by you/your institution/your underwriter).

I do think it is prudent to request a sale outside of a new development if all the sales used in the original report are from within the development and were builder-controlled (first-time/new construction) sales. So, good for you on that score. :new_smile-l:

 

[Thomas Fiehler]

A few questions come to mind. Is this for new construction? If not, why would you require a sale outside the subdivision if there are ample true sales inside the development? If so, then I agree with your views. Is the 9-3-09 date the date the contract was signed? If so, the appraisal may be made a few months later.

 

[Mike Kennedy]

http://appraisersforum.com/showthread.php?t=163141

 

[CANative]

I have taken appraisal classes

so I got the job.

Priceless.

Why didn't they just hire an appraiser? Because an appraiser wouldn't get all tangled up in terms and jargon he didn't understand to begin with.

 

[keuler]

http://appraisersforum.com/showthread.php?t=163141

That is not an answer to my question. And you seemed to link your answer again in that post.

The APPRAISER, not myself, used a sale that took place after his value date and before his effective date.
---Is that allowed?

 

[AlwaysLearning]

Is this allowed? A comparable sale dated after the date of value given?

I am "reviewing" an appraisal for an internal bank purpose. It is a retrospective appraisal on new construction. The appraiser dates the value as of 9-3-09, but uses a comparable after the date. The appraisal effective date is 11-13-09. Note, in the last two months sales have picked up in this market.

I am going to send the appraisal back either way, as the appraiser only uses comparable from within the subject development. This may be an in-house loan, but we do require a comparable from a competing neighborhood as we don't believe it to represent an accurate market value if the developer controls all lot sales to a builder. (a developer controlled development) If it is, I will not bring it up. If it is not allowed I will ask for a different comparable.

And to those who have jumped on me before. I have taken appraisal classes, I could become licensed but will not. I try to keep the word review out of what I do as I am more compliance. If anything I would be an internal Appraiser manager for the bank. We are a small community bank who did not want to go the AMC rout so I got the job.

The date of value is the same as the effective date (same thing)

If this is a retrospective appraisal then 9-3-09 would be the date of value (or effective date) and the date of the report would be 11-13-09.

A typical retrospective appraisal will have 3 dates: Effective Date (or Value Date), the Date of the Report and Inspection Date (typically the Inspection Date will be contemporaneous with the Date of the Report)

But you probably know the above since you have taken appraisal classes.

 

[Mike Plumlee]

The opinion of value is supposed to be as of the effective date. You said the opinion of value is as of September but the effective date is November?

 

[Mike Kennedy]

That is not an answer to my question. And you seemed to link your answer again in that post.

The APPRAISER, not myself, used a sale that took place after his value date and before his effective date.
---Is that allowed?

Suggest reading that entire thread.:icon_idea:

 

[keuler]

Suggest reading that entire thread.:icon_idea:

Thank you Mike, I missed that little bit at the end.

"If the effective date of value in the review assignment is the same as the effective date of the work under review, the reviewer cannot use sales which closed after that date. Just like a retrospective appraisal. Although I might use such a sale if it was a contracted sale as of the date of value if it was relevant."

Reading through the USPAP again before I respond to anything else.