Sales Price Addendum After Appraisal Submitted

[BRCJR]

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...??

Experience/confidence comes to mind.

 

[Tim Hicks (Texas)]

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

You don't have to do any of that! Fannie may does not require it. See Fannie Mae Announcement 1609 referenced above.

 

[J Grant]

Just beca

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

If they modify price on new home due to change of options or upgrades after appraisal, no need for new appraisal unless asked for. The appraisal reflected what was known on eff date.

 

[The Bob]

You don't have to do any of that! Fannie may does not require it. See Fannie Mae Announcement 1609 referenced above.

Even though FNMA doesn't require it, many lenders still want it noted. I've had that discussion a number of times.
I treat it same as JG.

 

[Terrel L. Shields]

it might or might not have changed my value conclusion

Shouldn't, or you did it wrong

 

[Tom Woolford]

Unless you're selecting comps based on sales price, I don't see why value would change because price did. Make a note that data on page one regarding facts of the sale have changed, summarise the new data and move on. It's not a new assignment, and the five minutes it takes are well spent in cultivating client good will.

 

[residentialguy]

it might or might not have changed my value conclusion.

Yes, it could.

Unless you're selecting comps based on sales price, I don't see why value would change because price did.

So if you found out that your comp prices on your report were incorrect, that wouldn't affect your value?

Shouldn't, or you did it wrong

have to disagree with you here, Terrel. The contract is also a market indicator of value that you need to consider, (not to be confused with using it as a target) therefore an appraiser would be violation of USPAP by ignoring a significant market indicator of value. Often my point value is based up on a verified contract of the subject. If, for example, the price were to change...just as if comp 1 price were to change...that may affect my OMV. Why do you think the sale price of the subject pops up in your SCA?

Here is FNMA view on contract

 

[J Grant]

I don't think the changes and their affect on value means a change of price !! It would mean changes of what is included in the property sale, or repair items addressed or terms changed or concessions added or subtracted. Why would a change of price affect the value to such a degree unless the appraisal revolved around number hitting ? And I am totally on board with appraising to a reconciled SC price or over it as long as there is additional credible support. But when the support is from the SC price for its own price, that is when problems like this occur.

Please stop with this line about appraisers "ignoring" the SC ...virtually no appraiser "ignores" a sales contract. Not hitting the sc price does not mean it was ignored.

 

[Dublin ohio]

Yes, it could.




So if you found out that your comp prices on your report were incorrect, that wouldn't affect your value?




have to disagree with you here, Terrel. The contract is also a market indicator of value that you need to consider, (not to be confused with using it as a target) therefore an appraiser would be violation of USPAP by ignoring a significant market indicator of value. Often my point value is based up on a verified contract of the subject. If that were to change...just as if comp 1 price were to change...that may affect my OMV. Why do you think the sale price of the subject pops up in your SCA?

Here is FNMA view on contract
View attachment 33515

IMHO. It would depend on why the sales price was reduced. If it was the result of some significant hidden problem due to home inspection. Then very possible. But that opens a whole new can of worms. If due to some factor that has nothing to due with improvements. Why would it make a difference. Could be due to financing or down payment issue.

 

[residentialguy]

I don't think the changes and their affect on value means a change of price !! It would mean changes of what is included in the property sale, or repair items addressed or terms changed or concessions added or subtracted. Why would a change of price affect the value to such a degree unless the appraisal revolved around number hitting ? And I am totally on board with appraising to a reconciled SC price or over it as long as there is additional credible support. But when the support is from the SC price for its own price, that is when problems like this occur.

Please stop with this line about appraisers "ignoring" the SC ...virtually no appraiser "ignores" a sales contract. Not hitting the sc price does not mean it was ignored.

So, adding $10k in concessions doesn't affect the price on sales?
I didn't say that all changes would affect value. I said, "Yes, it could". Then I showed a for instance. Somehow you translated that into all that goblety goop you wrote.