Site Comp Sale Date After Effective Date

[Russ Kitzberger]

In the Lending world this will not fly.

Sometimes it is about spending the $ to argue a topic.

Remember, at the end of the day, if you take it to court, the court is going to decide the matter regardless of if you are arguing about a loan or something else.

By the time the lenders attorneys hire my firm they already have the loan and it doesn't matter if the original appraisal checked all the review boxes or not. Sometimes the court will force the lender to do things they wouldn't underwrite.......

 

[Joe Flacco]

Sales being closed before the effective date only only makes sense for review since you are reviewing based on what was available as of the effective date. Effective date doesn't mean data cut off date.

 

[alebrewer]

I would cite any sale that hadn't settled as of the effective date as a 'pending' sale. Of course if it closes before the date of report, the appraiser might want to place significant weight on that sale - noting that it sold X days after the effective date. It would, however, be misleading to show that sale as 'closed' as of the effective date of appraisal.

 

[Joe Flacco]

It is pretty silly for the effective date to be a data cut off date.

 

[CGinMN]

I'm working on a report for a court case, and I've decided to develop the cost method as support for the sales comparison. The effective date of the report (date of the inspection) is 7/19. The very best site sale (though there are several others) took place 7/20. Am I going to run into a problem using this property?

OP’s opinion is that this is the very best site sale. To not include it in the report and use it as a comp and give it significant weigh would be foolish IMO.

It sounds like the effective date isn’t even an assignment condition, it’s based on the inspection date. Couldn’t the appraiser easily move the effective date forward and eliminate any issues?

 

[Terrel L. Shields]

give it significant weigh would be foolish IMO.... effective date isn’t even an assignment condition, it’s based on the inspection date.

What???? A YEAR after the date of appraisal on an retrospective report??? I would say that would land you in hot water and the opposing attorney will eat you up.

It sounds like the effective date isn’t even an assignment condition

Damifino but I suspect the OP is wrong

The effective date of the report (date of the inspection) is 7/19

So you inspected this in 2019 and are just now getting around to writing the report?

Your effective date is in 2019....so when did you actually inspect it? You can have 3 dates. The date of the value. The date of the inspection. And the date of the report....
.

 

[CGinMN]

July 19/20, 2021 is my reading

 

[Carnivore]

I would cite any sale that hadn't settled as of the effective date as a 'pending' sale. Of course if it closes before the date of report, the appraiser might want to place significant weight on that sale - noting that it sold X days after the effective date. It would, however, be misleading to show that sale as 'closed' as of the effective date of appraisal.

Nobody said or suggested that in this thread! Maybe that was your point, that others might misinterpret what was stated in the responses above.

 

[alebrewer]

Nobody said or suggested that in this thread! Maybe that was your point, that others might misinterpret what was stated in the responses above.

Didn't say they did - was just clarifying that, as of the effective date, the sale had not settled.

 

[Functional Obs]

When did it go under contract? Meeting of minds date?

I'll have to check--most certainly at least one day before. Land sales in the area take a while typically.