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basic question re: amended appraisal request

Discussion in 'General Appraisal Discussion' started by bubba31, Aug 4, 2011.

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  1. bubba31

    bubba31 New Member

    0
    Apr 13, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Pennsylvania
    Recently completed an appraisal for a bank client. After report was delivered, the bank calls and tells me the property will be subdivided prior to closing. Asking if I can amend my initial report and would the value change?

    My question: Can I amend the original report with discussion of request submitted to me? Or, is this a new assignment?

    A little clarification would go a long way. Thank you
     
  2. leelansford

    leelansford Elite Member

    48
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois

    What was the subject property is no longer the subject property. Given this distinction, I would treat this as a new assignment. That stated, this doesn't necessarily mean that you have to start from scratch.

    It's good that you ask, but, I'm sensing that you see some difficulties associated with treating this as a new assignment; am I correct in my guess?

    Please satisfy my curiosity: How significant is the difference between the 'before' and the 'after'?
     
  3. bubba31

    bubba31 New Member

    0
    Apr 13, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Pennsylvania
    Lee,

    while the subdivision in question will lop off roughly 40% of the parcel size, the anticpated loss in value results in only 5%.

    My inclination is to treat this as a new assignment (removing the variable of possible USPAP issues ) and charging only a modest fee for my time so as not to further upset a client ( a good client). I agree with your first comment;it is a different property. I think this is the correct approach
     
  4. Riick

    Riick Elite Member

    68
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    You will be provided with a copy of the proposed plot plan and legal description,
    which will be included in the report, so there's no question about
    "which 5 acres" you're appraising, and whether the house is (or is not) situated on the parcel.

    .
     
  5. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    Top Poster Of the Month

    941
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    You can treat it as a new assignment. You can treat it as an extension of the existing assignment...
     
  6. CANative

    CANative Elite Member

    530
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    An "extension" of the existing assignment? No way.

    It's a different and new appraisal. The subject property is not the same and the scope of work is completely different.

    The OP will need a different legal description and may even have to revisit the site. The appraisal will require the use of a hypothetical condition and would have to be conditioned on completion of the split.

    I'd charge a brand new fee with perhaps a small discount for not having to remeasure the improvements.
     
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