Appraisers cannot correlate to any comparable sales that close after the appraisal date (the date of inspection). In “hot markets” this is a very important consideration b/c the necessary comps are often pending.
Appraisal inspections should be delayed until after necessary pending sales close.
If an appraisal comes in low and a higher priced pending sale closes after the fact, the appraiser needs to re-inspect and re-write the appraisal with a new appraisal date. This, of course, adds costs and creates delays. Appraisers are also sometimes unwilling to change values.
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646
