What if the contract is amended after the appraisal is completed? (Question #9, FNMA FAQ's, 8/7/2018)
If the contract is amended after the appraisal is completed, the lender must provide an updated contract to the appraiser if it is amended in a way that affects the description of the real property used by the appraiser. However, minor updates to the contract, such as changes to seller-paid closing costs or changes to the contract price, do not require an updated appraisal.
Contract amendments that could affect the description of the property include:
|•||Amendments due to revised plans/specs for new construction or remodeling|
|•||Changes in the legal description, acreage and/or number of parcels conveyed|
|•||Renegotiated seller concessions or sale price as a result of a home inspection revealing property damage or deferred maintenance|
Contract amendments that could affect the description of the property require a new appraisal. Essentially, the appraisal is for a different property. I would still state that you have appraised the property and why a new appraisal was needed.