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  #1  
Old 11-05-2009, 11:40 AM
Rice Brewer's Avatar
Rice Brewer Rice Brewer is offline
 
Join Date: Dec 2004
Location: Fayetteville & Fort Smith, AR
State: Arkansas
Professional Status: Certified Residential Appraiser
Posts: 854
Default How do you handle "revisions"?

Whenever I make revisions or add additional comments to a report after said report has been sent to my client, I add an additional comment page entitled "comments added XX/XX/XXXX" with the following verbiage:

"At the request of the client, the following comments have been added as of this date. As a result, we have changed the signature date to said date. Nevertheless and this addition notwithstanding, the effective date of the value opinion given remains (insert effective date)."

Then I go on to state what needs to be said, what was changed, any corrections made, etc...

Now comes a client who refuses to take a revised report with such a page and wants the report revised without this explanation page. I am of the opinion that to do so would greatly increase my liability with two reports out there and no explanation of the difference between the two.

FWIW, this client asked four questions, three of which were already addressed in the original report. I answered their questions by referencing the particular section of the report. The fourth question had to do the fact that the site was 27 acres of rural recreational land and whether or not it is income producing in nature. I responded that it was not and that if it was and if I didn't mention such activity and take such activity into account, the original report would be misleading - at best.

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  #2  
Old 11-05-2009, 11:57 AM
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Obsolescent Obsolescent is offline
 
Join Date: Jul 2004
Location: Chicago
State: Illinois
Professional Status: Certified Residential Appraiser
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I always amend the report with a new signature date. I reference at the beginning addendum that its an amended version of a report dated XX/XX/2009. Never had an issue doing it that way.
  #3  
Old 11-05-2009, 12:10 PM
KYLECODY KYLECODY is offline
 
Join Date: Apr 2003
State: Arizona
Professional Status: Certified Residential Appraiser
Posts: 1,268
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Follow up comments on 2/2/2222: XXXXX

Thats how we do it. Tell them to get over themselves. It doesnt effect them.
  #4  
Old 11-05-2009, 12:20 PM
Denis DeSaix Denis DeSaix is online now
 
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Location: Northern California
State: California
Professional Status: Certified General Appraiser
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Quote:
Originally Posted by Rice Brewer View Post
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Your procedure is appropriate and I would not modify it.
  #5  
Old 11-05-2009, 12:25 PM
leelansford leelansford is offline
 
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State: Illinois
Professional Status: Certified Residential Appraiser
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Quote:
Originally Posted by Rice Brewer View Post
...
Now comes a client who refuses to take a revised report with such a page and wants the report revised without this explanation page. I am of the opinion that to do so would greatly increase my liability with two reports out there and no explanation of the difference between the two.

...

Opinions?
If the client doesn't see things your way, wave "bye-bye" to the client. Seriously.

'Nuff said.
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  #6  
Old 11-05-2009, 02:22 PM
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Terrel L. Shields Terrel L. Shields is offline
 
Join Date: May 2002
Location: Springtown, AmeRica
State: Arkansas
Professional Status: Certified General Appraiser
Posts: 39,546
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Got one of them to fix myself Rice...from U No Who....seems they forgot to mention it was not "as is" but as proposed. Would have been nice to have sent me a copy of the plans to add a residence inside a commercial building instead of 2 copies of the Sales Contract...Now they are in a panick. Do they have any idea how much obsolesecence is created by putting a living Q inside a commercial building that is a dog to begin with?
So now I have a whole report to modify and the HBU is going to quadruple in size because I have to find an artful way to tell them that only a moron would loan money on a contrived dwelling inside a 100 year old commercial building...which kills the deal for the Realtor as well...nobody gonna be happy, but at least I called the client back and told them to find someone else to do the one they send that is still pending....I'm thru with them. No more.
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  #7  
Old 11-05-2009, 04:01 PM
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DMZwerg DMZwerg is offline
 
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State: Wisconsin
Professional Status: Certified Residential Appraiser
Posts: 4,476
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Don't compromise as the added liability could be a real pain.

Save every correspondence & revision in the workfile, preferably with the dates such that any claims on earlier/later versions are covered.
If you make PDFs consider adding a revision # or such in the name of the PDF so each is unique, and if you don't then make a PDF or printout of each revised version & save into the workfile to have every complete version with dates & signatures in the workfile.

I label any revision with "-revN" (N=revision number) added to the file name of the PDF so that every PDF revision has a unique name. "<name>-rev1.pdf" or such.
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  #8  
Old 11-05-2009, 05:52 PM
gdday4 gdday4 is offline
 
Join Date: May 2007
State: Illinois
Professional Status: Certified Residential Appraiser
Posts: 14
Default

You're certainly correct in the way you're doing it, but I know some of the AMCs demand that you just make changes within the report and don't highlight that it was revised. In this case, just specifically this case, what is your liability? There was nothing wrong with the original report. As long as the two versions have a different date do you really care which one someone gets their hands on? I personally just make the revisions to the comments and let it fly. I'm not changing anything of substance, just adding comments to clarify something the ignorant 'QC' reviewer doesn't understand. Also, some of the AMCs do not even retain the first report, it gets overwritten by the new one and is lost forever. The ones that retain all submissions have a fail safe so that only the latest one is active and can be seen by the client. But I guess you did say the request came from 'the client' so that would mean that they would have both versions. Hmmm, this is why I only work for organizations that I trust.
  #9  
Old 11-05-2009, 08:07 PM
firstchoiceappraisal firstchoiceappraisal is offline
 
Join Date: Feb 2009
Location: Portland
State: Oregon
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Posts: 456
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Seriously? I wish most appraisers would do it that way so I don't have to answer the underwriter's "where is it" questions. I'm beginning to recite parts of the URAR in my sleep. We have one appraiser who does this and I think it is absolutely the most helpful thing.
  #10  
Old 11-06-2009, 01:58 AM
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VolcanoLvr VolcanoLvr is offline
 
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Location: Inside the ring of fire
State: Washington
Professional Status: Certified Residential Appraiser
Posts: 2,750
Default

Jeesh, I get tired of reading how appraisers just roll over and make changes to a previously submitted report without any concern.

An appraisal report, especially one on a Fannie form, is a FEDERAL LEGAL DOCUMENT and should not be modified without explanation. The best way to do that is via a separate signed addendum page which provides an explanation of what was requested by whom, and what was done by the appraiser to make the modification.

It is naive to think that the 'old' original report is destroyed. You don't really know for sure. So the only way to protect yourself is to add an addendum page, and put a different signing date on the report from the original date.

Some of the stupid 'additional info' requests we get are because our reports are "machine read" initially, and if certain words or phrases are not in the report, the software kicks it out. Then it's up to a real person to read the report...and many of the readers can't comprehend data presented on several pages that tells the whole story.

I finally got tired of the incessant requests for additional info (much of which was already in the report) that I wrote the following information, which is now at the top of page one in my report addendum. Use it if you want:

MODIFICATIONS TO A SUBMITTED ORIGINAL REPORT:
Any modification, revision, or change to a signed and submitted report will only be done via a dated and signed Addendum attached to and incorporated in the revised report. USPAP requires ethical conduct by the appraiser. Modifying an existing report at the request of any User or even by the appraiser, and resubmitting it as if it is the original without explanation, is considered to be unethical.

This Addendum will include verbatim or paraphrased change request information that is given to the appraiser by the Lender, the Client, or any other identified User as noted in the original report, and may include the name and employer of the individual requesting the modification. If the appraiser made an inadvertent error which is discovered after the original report submission, that will be identified in the Addendum and what ever change is necessary will be done.

The appraiser reserves the right to review the desired change information submitted by a report User, to report that information per the above Addendum procedure, but to make no other change to the original report if that is considered the correct application.

This procedure is in compliance with USPAP Standard 2 to prepare and submit a report that is not misleading, and the Ethics Rule of USPAP. The appraiser is the only person ultimately responsible for the report content, and this appraiser intends to comply with USPAP requirements regardless of Lender, Client or other User communication that may be considered in conflict with USPAP.

EXCEPTION TO REPORT MODIFICATION:
The appraiser is required to report observed conditions with the property at the time of inspection that have an effect on value, or that are safety, security or salability issues. Those conditions may be described in writing in various places in the report. Photos of those conditions and other photos may be included that can help the client or underwriter understand property conditions and characteristics. Therefore no written information or photos that document those conditions will be removed from the report after the original report is delivered to the client.

POTENTIAL ADDITIONAL FEE AFTER REPORT SUBMISSION:
Requests for additional information, including but not limited to additional comparables, the Cost or Income Approaches to value when not applicable, reliable, or necessary to form a credible opinion of value etc., or when not included in the Client's original assignment order, may result in additional fees commensurate with the amount of additional work required to satisfy the request for additional data.
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