Sales Price Addendum After Appraisal Submitted

[residentialguy]

Now, should the buyer just say Hey, I don't mind paying $20k more for nothing" Then I would not change my value to reflect the new price because the buyer not acting like a typical buyer and that sale is no longer relevant. My value stays at $180k and is supported by my SCA and other market indicators.

 

[OSU Beavers]

https://www.fanniemae.com/content/guide/selling/b4/1.1/05.html

 

[The Bob]

Ok, here's the OP..

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 the lender wants is for the contract section to be updated. I get these all the time and I've never been asked to change my OMV. That's an entirely different matter.
Either update page 1 or add an addendum. Even though Fannie doesn't require it, many lenders still want the change noted in the report. So if you do change the report, you need to comply with Rule 1-1(b) and include analysis of the first contract. If the clieeint does not require a new effective date it's not a new assignment. The date of the report would need to be changed to the date you received the new contract.

From Res guy...

Ok..let's get all bias off the table. Let's talk market indicators here. Here's a hypothetical situation.
Market analysis, (SCA, etc) was done and fond that there was a reasonable range of value of $390,000 to $410,000, in which all points within that range were equally just as supported and probable. There was one property that was a pending sale which was identical in every way. The agents let him to measure it, do an interior inspection, and even allowed him to analysis the contract and all financing. The conditions of sale were completely in line with the conditions set in market value. Both agents were interviewed, including the seller. All typical buyer seller motivations, etc. The sale price was $405,000 with no concessions and typical financing, thus nothing affected the price. What a great indicator of value, wouldn't you agree??? The point value was narrowed to this great indicator @ $405,000. This price of this property is a good representation of a point value. A few days later, you found out that the contract changed to to $395,000. Since you based your point value on this property, why wouldn't you change your point value to $395,000???

WHY would you change it?

To the OP, read FAQ #137 "Does Changing the Sale Price Result in a New Assignment". Its on page #274 in my current copy of USPAP

Edit: Just to be clear, I've never been asked to change my OMV to match a change in the contract price.

 

[residentialguy]

From Res guy...

Ok..let's get all bias off the table. Let's talk market indicators here. Here's a hypothetical situation.
Market analysis, (SCA, etc) was done and fond that there was a reasonable range of value of $390,000 to $410,000, in which all points within that range were equally just as supported and probable. There was one property that was a pending sale which was identical in every way. The agents let him to measure it, do an interior inspection, and even allowed him to analysis the contract and all financing. The conditions of sale were completely in line with the conditions set in market value. Both agents were interviewed, including the seller. All typical buyer seller motivations, etc. The sale price was $405,000 with no concessions and typical financing, thus nothing affected the price. What a great indicator of value, wouldn't you agree??? The point value was narrowed to this great indicator @ $405,000. This price of this property is a good representation of a point value. A few days later, you found out that the contract changed to to $395,000. Since you based your point value on this property, why wouldn't you change your point value to $395,000???

WHY would you change it?

Did you read it? Pretty self explanatory. If you based you value opinion strongly on comp 1's sale $410,000 price because it was a perfect comp and later found out that comp 1's sale price was incorrect and should be $395,000 - which you would have opined $395,000 value. So, does your original $410,000 opinion warrant changing?

 

[J Grant]

Did you read it? Pretty self explanatory. If you based you value opinion strongly on comp 1's sale $410,000 price because it was a perfect comp and later found out that comp 1's sale price was incorrect and should be $395,000 - which you would have opined $395,000 value. So, does your original $410,000 opinion warrant changing?

Your copy verbiage said pending sale price changed, not comp 1 sale price?

 

[residentialguy]

Your copy verbiage said pending sale price changed, not comp 1 sale price?

Just putting it at a different market indicator so he'd understand.