PC/PSA

PC and PSA refers to the purchase contract (PC) or purchase and sales agreement (PSA), the executed agreement between a buyer and seller that establishes the terms of a real estate transaction. The document generally includes the purchase price, financing terms, contingencies and anticipated closing date.

For purchase assignments, the appraiser analyzes the agreement of sale and considers relevant terms when developing the appraisal. Price, financing concessions, seller contributions and other conditions can help the appraiser determine whether the contract reflects typical market terms or includes factors that may affect the relationship between contract price and market value.

Lenders commonly provide the purchase contract with the appraisal order so the appraiser has the most current transaction information. If the price, terms or other material conditions change, the appraiser may need the updated agreement to ensure the analysis reflects the transaction actually being considered.