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Sales Price Addendum After Appraisal Submitted

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Honey West

Sophomore Member
Joined
Nov 20, 2016
Professional Status
Certified Residential Appraiser
State
California
Help please! I just received a revision request because the sales price changed (reduced) after I completed and submitted the appraisal. I think it is just wrong to ask me to change/amend my work with new facts, and it might or might not have changed my value conclusion. How do I protect myself, without simply refusing to make the change, as I like the client. Any experience or input on this much appreciated. Thank you
 

Dublin ohio

Senior Member
Joined
Mar 20, 2008
Professional Status
Licensed Appraiser
State
Ohio
Fannie does not require that you make the change in this situation. The selling guide announcement in the link below addresses it. The fannie site appears to be down right now. There are numerous threads on this topic. Just search the forum using changing sale price for search

https://www.fanniemae.com/content/announcement/sel1609.pdf
 

EddieB

Elite Member
Joined
Feb 17, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
What has changed other than the contract date and contract price?
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
137. DOES CHANGING THE SALE PRICE RESULT IN A NEW ASSIGNMENT?
Question: I recently completed an appraisal for mortgage financing purposes in a purchase
transaction and delivered the report to my client. My opinion of value did not
support the pending sale price. As a result, the purchase transaction was not
consummated. However, one week later the buyer and seller entered into a new
purchase agreement where the sale price coincided with my appraised value. My
client asked if I can provide a revised report that includes the analysis of the newly
agreed-upon sale price. To provide a revised appraisal report, must I consider the
client’s request as a new assignment?

Response: If the client does not require a more current effective date, USPAP would not mandate treating the
request as a new assignment. However, if the client does require a more current effective date, the
request must be treated as a new assignment.
In this example, regardless of whether the effective date is changed, the date of the report would
have to change to accurately reflect the appraiser’s consideration of the newly obtained agreement
of sale. Because the new purchase agreement was obtained after the date of the first report, the
revised report would need to have a date of report that is the same as or later than the date the new
purchase agreement was obtained by the appraiser.
In addition, the new report would also need to reflect the appraiser’s analysis of the prior
agreement of sale. In the development of an appraisal, an appraiser is required under Standards
Rule 1-1(b), to not commit a substantial error of omission or commission that significantly affects
an appraisal. Since information about the prior agreement of sale is known by the appraiser and
that information is relevant to the appraisal problem, it must be considered.
Additional related guidance may be found in Advisory Opinion 3, Update of a Prior Appraisal.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
137. DOES CHANGING THE SALE PRICE RESULT IN A NEW ASSIGNMENT?
Question: I recently completed an appraisal for mortgage financing purposes in a purchase
transaction and delivered the report to my client. My opinion of value did not
support the pending sale price. As a result, the purchase transaction was not
consummated. However, one week later the buyer and seller entered into a new
purchase agreement where the sale price coincided with my appraised value. My
client asked if I can provide a revised report that includes the analysis of the newly
agreed-upon sale price. To provide a revised appraisal report, must I consider the
client’s request as a new assignment?

Response: If the client does not require a more current effective date, USPAP would not mandate treating the
request as a new assignment. However, if the client does require a more current effective date, the
request must be treated as a new assignment.
In this example, regardless of whether the effective date is changed, the date of the report would
have to change to accurately reflect the appraiser’s consideration of the newly obtained agreement
of sale. Because the new purchase agreement was obtained after the date of the first report, the
revised report would need to have a date of report that is the same as or later than the date the new
purchase agreement was obtained by the appraiser.
In addition, the new report would also need to reflect the appraiser’s analysis of the prior
agreement of sale. In the development of an appraisal, an appraiser is required under Standards
Rule 1-1(b), to not commit a substantial error of omission or commission that significantly affects
an appraisal. Since information about the prior agreement of sale is known by the appraiser and
that information is relevant to the appraisal problem, it must be considered.
Additional related guidance may be found in Advisory Opinion 3, Update of a Prior Appraisal.

:D

New analysis of Agreement of Sale,
New date of value,
New search for comps,
New and more exciting fee!
Yup.
No "ammendment" for post value date occurances.

.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
How did you get that out of my post?
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Help please! I just received a revision request because the sales price changed (reduced) after I completed and submitted the appraisal. I think it is just wrong to ask me to change/amend my work with new facts, and it might or might not have changed my value conclusion. How do I protect myself, without simply refusing to make the change, as I like the client. Any experience or input on this much appreciated. Thank you

All you need do is comment that the price changed on X signed date ( whenever new price was signed by both parties) , and that lender forwarded it to you for inclusion in appraisal, put your comments and date them on the addendum. Why would you refuse to make the revision for client? Why do you need to "protect yourself" ?? Your value opinion did not change, the effective inspection date did not change: nothing changed in the appraisal except you are acknowledging the sale price was re negotiated after appraisal was done on the subject. o
 

EddieB

Elite Member
Joined
Feb 17, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
Help please! I just received a revision request because the sales price changed (reduced) after I completed and submitted the appraisal. I think it is just wrong to ask me to change/amend my work with new facts, and it might or might not have changed my value conclusion. How do I protect myself, without simply refusing to make the change, as I like the client. Any experience or input on this much appreciated. Thank you

I understand your sales price change comment, but what new facts might change your estimate of value. Your statement here makes me believe more is in play. Please correct me if I am wrong
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I don't understand her comment either. When I change to a lower sale price after appraisal, it happens because I appraised the subject below the SC price and they re negotiate , either to match my MV opinion or they agree on some other alternate price between MVO and the contract.

Why would the new fact of a sc price make her change her value conclusion...??
 

EddieB

Elite Member
Joined
Feb 17, 2005
Professional Status
Certified Residential Appraiser
State
North Carolina
On an occasion or two, a proposed construction has been modified after the date of appraisal. That is cut and dry, new facts, new effective date, new appraisal with shiny fee.

That is why I asked the OP to clarify:shrug:
 
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