WHY DOES THE APPRAISER NEED THE PURCHASE & SALES AGREEMENT?
P&S's signed by both parties is now required before the appraisal can be completed.
I was in the Q&A section when I saw a question by Greg Cremia. "Is it illegal to try to influence an appraiser?" Great question. As advocates for the seller we are trying to present the subject property in the best possible way to the appraiser.
Back to why the appraiser needs a copy of the signed P&S. It is because USPAP (Uniform Standards of Professional Appraisal Practice) requires the appraiser to have it. Not to have it is a violation of USPAP. This could lead to suspension, fines, sanctions, etc.
USPAP is considered the quality control standards for appraisal reports. Unless each and every appraisal is reviewed by a licensed and certified appraiser than it can be garbage in and garbage out. Filling out forms properly does not guarantee accurate appraisals. This one size fits all standards just doesn't work.
The appraiser then reads the P&S to understand the terms of the sale. Are there any credits for closing costs and prepaids? Any owner financing? Are any of the bundle of rights not transferring? Is this an arm's length transfer? Is personal property part of the sales price? Is it subject to work being completed, etc?
Offers to purchase used to be OK. No more. P&S's signed by both parties is now required before the appraisal can be completed.
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