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Rainmaker
2,669,063
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

My experience is that there is nothing like what a willing buyer and a willing seller will pay for actual, current proof of value in a normal situation. The contract supports that premise which courts favor as well

Nov 16, 2015 06:09 AM
Rainmaker
3,986,000
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

They don't, but many times lenders are the  ones who provide it to make sure things go well

Nov 16, 2015 05:49 AM
Rainmaker
1,235,759
Joyce Marsh
Joyce Marsh Real Estate LLC - Daytona Beach, FL
Joyce Marsh Real Estate LLC - Coast & Luxury

I agree completely with Ken Jones on this. It is a subject that makes my blood boil. I do not see the need and feel it will definitely influence the appraisal. 

Nov 16, 2015 11:36 PM
Rainmaker
1,413,374
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

The appraiser usually knows the price and any important terms directly from the lender/mortgage broker in my experience.

Nov 16, 2015 10:41 AM
Rainmaker
5,163,524
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I have heard if there is too  much of a variance from appraised value and purchase price, it raises red flags with the underwriter.   

Nov 16, 2015 07:25 AM
Rainmaker
912,465
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Tony and Suzanne - You bring up a great point, and I am not really sure why an appraiser would need a copy of a purchase contract. The only thing I can think of is the purchase contract can be used to verify that the owner has a valid purchase contract with the buyer?

The comps should have nothing to do with the sales price on the contract.

Nov 16, 2015 06:53 AM
Ambassador
1,569,453
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

Seems like that would be the case, but I do think that on purchases, they allow for increasing prices and so they are trying to justify the offer price. 

Nov 16, 2015 06:36 AM
Rainmaker
450,266
Brenda J. Andrew
ULTIMA REAL ESTATE - Corpus Christi, TX
Professional Realtor in Corpus Christi, TX

I never understood this myself.  I couldn't believe it when an appraiser called me the first time for a contract.  I had taken an appraisal class and there was nothing said about getting a copy of the contract in order to do the appraisal. Great question!  I had a contract once that was accidentally written for $100,000 less than the agreed upon sales price in my buyers favor.  We didn't realize the mistake until the appraisal came in $100,000 short.  It was a townhouse on Ocean Dr. that appraised for $150,000 and was selling for $250,000.  My buyer wanted to know why it didn't appraise then we found out that is how much the contract was written up for.  Somehow the appraiser was able to backtrack and bring the value up $100,000.  Unbelievable.

Nov 16, 2015 04:47 AM
Rainmaker
1,172,389
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

They need to know how much time appraisal rpt contigiency will be removed. APN info....

Nov 16, 2015 04:38 AM
Rainmaker
4,799,651
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Yes they are.  But, they are past sales.  What a buyer is willing to pay for a home is also a type of comp.

Nov 16, 2015 04:13 AM
Rainmaker
1,659,305
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

That is just plain lazy on appraisers' parts. Back 10 years ago, we would never have been asked for a copy of a contract or the selling price.

Nov 16, 2015 03:10 AM
Rainmaker
4,222,358
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great question.  Appreciate Ken Jones comments.

Nov 16, 2015 02:49 AM
Rainmaker
1,525,355
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Yes I think they comps should speak for themselves.

Nov 16, 2015 02:42 AM
Rainmaker
292,585
Jack Lewitz
Exit Strategy Realty - Evanston, IL

Good question. I always suspect appraisals that come in close to finance price vs sale price and wonder if getting a copy of the contract is the reason this happens.

Nov 16, 2015 01:46 AM
Rainmaker
634,332
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

I've been told it is requested so they have documented identification of the property and inclusions/exclusions that would impact the valuation. Yes, comps are comps and the sale price shouldn't be a factor.

Nov 16, 2015 01:45 AM
Ambassador
5,612,950
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

I suspect that it may influence their opinion.

Feb 08, 2019 10:59 PM
Rainmaker
2,442,558
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

That does make more sense to me.  How about you?

Nov 16, 2015 11:47 AM