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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
Richie Alan Naggar
Tony and Suzanne Marri...
They don't, but many times lenders are the ones who provide it to make sure things go well
Tony and Suzanne Marri...
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.
The appraiser usually knows the price and any important terms directly from the lender/mortgage broker in my experience.
I have heard if there is too much of a variance from appraised value and purchase price, it raises red flags with the underwriter.
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.
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.
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.
They need to know how much time appraisal rpt contigiency will be removed. APN info....
Yes they are. But, they are past sales. What a buyer is willing to pay for a home is also a type of comp.
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.
Great question. Appreciate Ken Jones comments.
Yes I think they comps should speak for themselves.
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.
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.
I suspect that it may influence their opinion.
That does make more sense to me. How about you?