How to write an addendum for a new appraisal price?

How to write an addendum for a new appraisal price?

When you receive a new appraisal price that differs significantly from the original appraisal, it’s important to document the changes with an addendum to the appraisal report. Here’s how you can write an addendum for a new appraisal price:

1. Start by stating the reason for the addendum: Begin the addendum by explaining why it is being added to the original appraisal report.

2. Include the new appraisal price: Clearly state the new appraisal price that has been determined by the appraiser.

3. Provide an explanation for the price change: Detail any factors that have influenced the change in the appraisal price, such as updated market conditions or additional information that was not available during the initial appraisal.

4. Include any updated comparables or data: If the new appraisal price is based on updated comparables or data, make sure to include this information in the addendum.

5. Sign and date the addendum: The addendum should be signed and dated to indicate that it is a valid addition to the original appraisal report.

6. Submit the addendum to all relevant parties: Make sure to distribute the addendum to all parties who received the original appraisal report, such as the lender, borrower, and real estate agent.

7. Keep a copy for your records: It’s important to keep a copy of the addendum for your records in case it is needed in the future.

By following these steps, you can easily write an addendum for a new appraisal price that accurately reflects the updated valuation of the property.

FAQs:

1. Why would a new appraisal price differ from the original appraisal?

A new appraisal price may differ from the original due to changes in market conditions, updated comparables, or additional information that was not available during the initial appraisal.

2. Can a new appraisal price be higher than the original appraisal?

Yes, a new appraisal price can be higher than the original if the appraiser determines that the property’s value has increased since the initial appraisal.

3. Is it common to write an addendum for a new appraisal price?

Yes, it is common to write an addendum for a new appraisal price when there is a significant difference between the original appraisal and the updated valuation.

4. Who should write the addendum for a new appraisal price?

The addendum for a new appraisal price should be written by the appraiser who conducted the updated appraisal.

5. How soon should an addendum for a new appraisal price be completed?

An addendum for a new appraisal price should be completed as soon as the updated valuation is determined to ensure all parties are informed of the changes.

6. Can a new appraisal price be requested by the borrower?

Yes, a borrower can request a new appraisal price if they believe the property’s value has changed significantly since the original appraisal.

7. Will a new appraisal price impact the loan approval process?

Yes, a new appraisal price can impact the loan approval process, as it may affect the amount of financing that is approved for the property.

8. How should the new appraisal price be communicated to the lender?

The new appraisal price should be communicated to the lender through an addendum to the original appraisal report.

9. What should be included in the explanation for the price change?

The explanation for the price change should detail any factors that have influenced the updated valuation, such as market conditions or updated comparables.

10. Does writing an addendum for a new appraisal price require additional fees?

Additional fees may be required to write an addendum for a new appraisal price, depending on the terms of the appraisal agreement and the appraiser’s policies.

11. How should the addendum for a new appraisal price be formatted?

The addendum for a new appraisal price should follow a clear and concise format, with the new price and explanation for the change clearly stated.

12. Can an addendum for a new appraisal price be revised after it is submitted?

An addendum for a new appraisal price can be revised if there are errors or omissions, but it is important to communicate any changes to all relevant parties.

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