Would you change the report or write an addendum?

[Craig in Oregon]

What the bruin said.

These kinds of post delivery changes cost 100+ beaver pelts where I work. Especially when my price opinion becomes their agreed sale price.

Then, you know, such equal appraised value / agreed price coincidences become more evidence that an appraisal was not needed because the appraisal "matched" the sale price. I mean statistically. Without reading the revised report there would be no way to know that is how things went. At least I think so. Others?

 

[J Grant]

Unless the contract price is driving the value opinion why is it of critical importance whether or not concessions on a subject affected the sales price?

 

[residentialguy]

Unless the contract price is driving the value opinion why is it of critical importance whether or not concessions on a subject affected the sales price?

Because we agreed to do that when we accepted that FNMA guideline job

 

[Peter LeQuire]

Res- Not to argue - there have been periods in which there was enough sales data from which the presence of radon was the only property difference that wod explain a price difference. That said, IMO, the presence of radon is much more comment worthy than an insignificant amount of "concession" negotiated after the appraisal is complete.

As to the thrust of the report: making the requested change isn't a legal, ethical, moral or fattening issue. Do the revision, do whatever is prudent to keep the USPAP police happy, and go on to the next one.

 

[J Grant]

I just called the buyer to find out the answer to that question. It was 1/2 the cost of the Radon Mediation. Now it makes sense.

Next question is should I disclose that tidbit????

Sorry, I missed this post earlier and the context of radon..

This is not a tidbit! The presence of radon is far more significant than the concession! In fact, if it were me, I might consider asking to do a new report ( and charging of course ) due to radon condition unknown prior.

If nothing else, I 'd want to do a search on my own dime to see if radon affects sales prices/values. And if I found value was affected I would want to contact lender...this was not disclosed or known to you prior but is known now, so could be a possible issue....eeck.

Is radon typical for homes in area? Sometimes it is present but people don't test for it. I have no idea if testing for it or radon is typical in the area of course.

The concession, obviously, was to cover the partial cost of radon mediation. If the cost was so low, perhaps the radon amount was low as well... ?

I would want to disclose the heck out of the radon finding...sorry I missed this the first read but had skimmed the thread.

 

[residentialguy]

Yes, it was not at any dangerous level. Every house has radon and MN is a hot spot for radon where ~40% of homes in MN are considered to be at dangerous levels. When a house has radon mitigation, it is no longer a problem. Having radon mitigation done in the house could actually help value, however I have not seen any discernible variance in prices

 

[J Grant]

Ok, that answers that....disclose everything, why concession was added, that at time of effective date ordinary assumption was of no adverse unseen condition, ( as you are not a radon inspector), that post eff date you were informed that radon mitigation was done, due to finding at inspection and seller kicked in a concession to pay for half. State that no change in value occurred. Due to significance of this change of new information, safer to make a new report number/new report, as significant information was learned after inspection eff date.

The ideal would be a new eff date and new inspection if lender would permit, as now a problem is known that was present on former eff date that you did not know about at the time (radon present in X amount that caused buyer to ask for remediation)

I don't know to be honest the exact best way to handle it, but full disclosure of chain of events and explain the fact that radon is present in MN houses and typical, informed buyers are aware of it etc.

 

[ucbruin]

By the way, this is where one of those rare instances where the concessions would NOT be adjusted dollar for dollar. The price was unaffected by this. That's why appraisers need to call the agents and VERIFY!

Hope UCbriuns catches this

RG,

Do you, like me, find it ironic that of all the appraisers, you are in this situation? You not "verifying" the terms of the sales contract for the subject with the listing agent, yet "verifying" with the other agents for the comps. I do get that you received the addendum to the p/s agreement after you completed both the inspection and report. Typically, the home inspection is completed before the appraiser goes out to inspect. I know you can take friendly ribbing, so I think maybe even you see the humor in this!!!!!!! :new_multi:

 

[residentialguy]

RG,

Do you, like me, find it ironic that of all the appraisers, you are in this situation? You not "verifying" the terms of the sales contract for the subject with the listing agent, yet "verifying" with the other agents for the comps. I do get that you received the addendum to the p/s agreement after you completed both the inspection and report. Typically, the home inspection is completed before the appraiser goes out to inspect. I know you can take friendly ribbing, so I think maybe even you see the humor in this!!!!!!! :new_multi:

I did verify it. The addendum happened after the appraisal

So I find a lot of humor in this...Need a shoe horn?