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Client switched from FHA to Conventional and asked to have appraised as-is

Discussion in 'General Appraisal Discussion' started by kevinhenley, Oct 20, 2010.

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  1. kevinhenley

    kevinhenley New Member

    0
    May 11, 2009
    Professional Status:
    Licensed Appraiser
    State:
    Ohio
    I appraised a home that has missing and some chipping paint on rear of house. Subject was built prior to 1978 so the FHA appraisal I completed was subject-to. The client asked me to switch to conventional and complete with an as-is value. Is this acceptable?
     
  2. Lost Cause

    Lost Cause Senior Member

    16
    Sep 17, 2004
    Professional Status:
    Certified General Appraiser
    State:
    New York
    It is acceptable, and it's between you and your client what you might charge for this new assignment (with a different scope of work).
     
  3. HF Mudd

    HF Mudd Senior Member

    29
    Jul 31, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    IMO, this is acceptable if the client orders a new appraisal (as the scope of work is now different) with a new effective date, new inspection and new fee. What you charge your client is a business decision on your part.

    This is NOT acceptable if they just want you to change the report you have already delivered.
     
  4. zdfenton

    zdfenton Junior Member

    2
    Nov 13, 2008
    Professional Status:
    Certified General Appraiser
    State:
    Wisconsin
    I disagree. Yes, this must be treated as a new assignment, but you do not need a new effective date and new inspection. USPAP FAQ 173 states "A new assignment does not mean that you must start from scratch. You must decide the appropriate scope of work for the new assignment. This would include a decision as to whether or not it is necessary to perform another inspection" Changing the report date, but not the effective date should be sufficient.
     
  5. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    440
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    wrong...although you could do it that way...
    exactly....

    And I would charge for my time to reappraise it. That's a business decision... when folks brag they can fill the form in 45 minutes, I don't know why they think they need more than that to change to report....so a modest fee of a couple hours by the hour would seem a reasonable assessment in most assignments.
     
  6. Eric C

    Eric C Member

    0
    Jul 25, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida


    AGREE.....
     
  7. AnonApprsr

    AnonApprsr Elite Member

    0
    Jan 21, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Massachusetts
    If it's the same effective date, I would not charge anything more for this new assignment. The original invoiced amount would stay.
     
  8. Webbed Feet

    Webbed Feet Elite Member

    32
    Feb 11, 2005
    Professional Status:
    Certified Residential Appraiser
    Hmmmm ... We should have some fun with this. Ok then, the same prior effective date is just fine and there is very little work to do. All because we have a FAQ to point to.

    What if the original appraisal effective date was 10/05/2004?
     
  9. HF Mudd

    HF Mudd Senior Member

    29
    Jul 31, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    You're free to do so, but since I don't know the reason for the change in the assignment, and it is MY license on the line (and therefore my decision to make), I feel more comfortable performing a new inspection. If the client doesn't like it, they are free to hire another appraiser to deliver an appraisal which meets their new assignment conditions.

    I guess being a jaded New Yorker has taken its toll on me.
     
  10. zdfenton

    zdfenton Junior Member

    2
    Nov 13, 2008
    Professional Status:
    Certified General Appraiser
    State:
    Wisconsin
    I don't think there's anything wrong with charging for it (I wouldn't), but I just wanted to make clear its a business decision and not a compliance issue
     
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