Report Date
Definition
The Report Date refers to the date on which an appraisal report was prepared. It is the date the appraiser finalizes and transmits the report, often corresponding with the date on the transmittal letter that accompanies the appraisal report. This date is distinct from the Appraisal Date which represents the effective date of the property valuation.
Examples
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Retrospective Appraisal: An appraiser completes an appraisal on January 31, 2022, for a property as it existed on January 1, 2020. Here, January 31, 2022, is the Report Date, while January 1, 2020, is the Appraisal Date.
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Current Appraisal: An appraiser inspects a property on October 10, 2023, and delivers the completed report on October 20, 2023. The Report Date is October 20, 2023, and the Appraisal Date is October 10, 2023.
Frequently Asked Questions (FAQs)
Q1: Why is the Report Date important?
- A1: The Report Date is crucial as it represents the official date when the appraisal report and findings were communicated, providing a timeline for reference and ensuring compliance with deadlines.
Q2: Can the Report Date be the same as the Appraisal Date?
- A2: Yes, the Report Date and the Appraisal Date can coincide, especially in cases where the appraisal is done quickly and the report is prepared on the same day.
Q3: How does a Retrospective Appraisal affect the Report Date?
- A3: In retrospective appraisals, the Report Date will be after the Appraisal Date. The appraisal assesses the value of a property as of a past date, but the report documenting that valuation is prepared later.
Q4: What information is typically included in a Transmittal Letter?
- A4: A transmittal letter usually includes the Report Date, a brief summary of the appraisal findings, purpose of the appraisal, and any disclaimers or limitations.
Q5: Who utilizes the Report Date?
- A5: Lenders, investors, and regulatory authorities often use the Report Date to ensure timely compliance with regulatory requirements and to validate the currency of the appraisal report.
Related Terms
- Appraisal Date: The effective date of the property valuation, representing the “as of” date that the value is determined.
- Transmittal Letter: A document accompanying the appraisal report that summarizes the appraisal, often indicating the Report Date.
- Effective Date: Another term for the Appraisal Date, designating when the valuation is applicable.
Online Resources
- The Appraisal Foundation: www.appraisalfoundation.org
- U.S. Department of Housing and Urban Development (HUD): www.hud.gov
- National Association of Realtors (NAR): www.nar.realtor
- Appraisal Institute: www.appraisalinstitute.org
References
- “The Appraisal of Real Estate,” by Appraisal Institute.
- “Fundamentals of Real Estate Appraisal,” by William L. Ventolo Jr. and Martha R. Williams.
- “Real Estate Appraisal: From Value to Worth,” by Tom Duncan and Alan Millington.
Suggested Books for Further Studies
- “The Appraisal of Real Estate” by Appraisal Institute
- “Real Estate Appraisal: From Value to Worth” by Tom Duncan and Alan Millington
- “Fundamentals of Real Estate Appraisal” by William L. Ventolo Jr. and Martha R. Williams
- “Appraising Residential Properties” by Appraisal Institute
- “Real Estate Valuation Theory” by Ko Wang, Marvin L. Wolverton
Real Estate Basics: Report Date Fundamentals Quiz
### What is the Report Date in a real estate appraisal?
- [x] The date the appraisal report was prepared.
- [ ] The date the property was inspected.
- [ ] The deadline to submit the appraisal to the client.
- [ ] The effective date of the property valuation.
> **Explanation:** The Report Date is the date the appraisal report was prepared, indicating when the appraiser finalized and transmitted the report.
### How does the Report Date differ from the Appraisal Date?
- [x] The Report Date is the date the report was prepared, while the Appraisal Date is the effective date of the property's valuation.
- [ ] The Report Date is always after the Appraisal Date.
- [ ] The Report Date and Appraisal Date are always the same.
- [ ] There is no significant difference between the two dates.
> **Explanation:** The Report Date represents when the appraisal report was prepared, while the Appraisal Date signifies the effective date or "as of" date of the valuation.
### What is a retrospective appraisal?
- [ ] An appraisal conducted in the future.
- [x] An appraisal that values a property as of a previous date.
- [ ] An appraisal using outdated methods.
- [ ] An appraisal done without an on-site inspection.
> **Explanation:** A retrospective appraisal determines a property's value as of a date in the past, often for legal or historical purposes.
### In a current appraisal, when can the Report Date and Appraisal Date be the same?
- [ ] In the case of a retrospective appraisal.
- [ ] When the property value has extremely fluctuated.
- [x] When the report is prepared immediately after the inspection.
- [ ] They can never be the same.
> **Explanation:** The Report Date and Appraisal Date can be the same if the report is finalized and transmitted on the same day as the property inspection.
### What might delay the Report Date despite an early Appraisal Date?
- [ ] Delayed report preparation by the appraiser.
- [ ] Changes in property value.
- [x] Both A and B.
- [ ] None, both dates are fixed.
> **Explanation:** Delayed report preparation or further analysis can result in a later Report Date, even if the Appraisal Date remains unchanged.
### Who commonly uses the Report Date?
- [ ] Only the appraiser who created the report.
- [ ] Real estate agents and brokers.
- [x] Lenders, investors, and regulatory authorities.
- [ ] None of the above use it significantly.
> **Explanation:** Lenders, investors, and regulatory authorities primarily use the Report Date for validation and compliance purposes.
### What types of appraisal might show significant differences between Report Date and Appraisal Date?
- [ ] Current appraisals.
- [x] Retrospective and prospective appraisals.
- [ ] Online evaluations.
- [ ] All appraisals have the same dates.
> **Explanation:** Retrospective and prospective appraisals often have different Report Dates and Appraisal Dates based on the effective valuation period required.
### Why is it important to distinguish between Report Date and Appraisal Date?
- [x] To understand when the report was completed versus the effective date of the valuation.
- [ ] To determine the property’s market availability.
- [ ] To know when to buy or sell the property.
- [ ] It is not important; the dates are interchangeable.
> **Explanation:** Distinguishing these dates is essential for understanding when the valuation was conducted (Appraisal Date) versus when the report was prepared and transmitted (Report Date).
### Which document usually includes the Report Date in an appraisal process?
- [ ] The listing agreement.
- [x] The transmittal letter.
- [ ] The mortgage agreement.
- [ ] The inspection checklist.
> **Explanation:** The transmittal letter, which accompanies the appraisal report, typically includes the Report Date.
### How should an appraiser handle discrepancies between the Appraisal Date and Report Date?
- [ ] Ignore minor discrepancies.
- [x] Clearly explain the differences in the report.
- [ ] Adjust the valuation to match the report preparation.
- [ ] Leave the dates out of the report.
> **Explanation:** Any discrepancies between the Appraisal Date and Report Date should be clearly explained within the report to avoid confusion and ensure transparency.
