I understand the question and have seen it many times on ActiveRain.
I have read multiple posts on the topic and there have been some good points brought up. This post I am just talking of why an appraiser would ask for a copy of the contract. I know the counter point is that sometimes some appraisers would just appraise to the contract price and that is a separate topic. This post is just to cover some reasons that appraisers would need a copy of the contract.
- I understand that the contract will show concessions.
- The contract contains terms and conditions of the sales that could affect the value of the property including personal items.
- The contract could show if there is going to be lease back payments.
- Standards Rule 1-5(a) of USPAP requires an appraiser to "analyze all agreements of sale, options, or listings of the subject property current as of the effective date of the appraisal."
- I was told that we need the contract to see if the sales price is an arms-length transaction. It is not used to determine a minimal value.
- Is motivation readable within the P.A. meaning Was the homeowner willing to negotiate abnormally on this transaction?