Retrospective Appraisal - Special Form/Addendum Required?

[monkey525]

This may be a stupid question but it's my first time doing a retrospective appraisal. Do we need to include any special form(s) or addendums on this drive-by form?

 

[Mike Kennedy]

Client Type? Intended Use? Scope of Work? All 3 will dictate the answers you seek.

 

[BRCJR]

This may be a stupid question but it's my first time doing a retrospective appraisal. Do we need to include any special form(s) or addendums on this drive-by form?

No such thing as a stupid question, but there is such a thing as doing an appraisal that you are not competent to do. If this is your first one and you are asking "stupid" questions, I suggest working with someone on this one, even if after the conclusion you say to yourself, "I could have done that by myself".

 

[monkey525]

It's currently under contract and the lender/client wants to know what it was worth back in 12/27/07 I guess because it dropped so much in value. I think all I need to include (that differs from the standard appraisal) is that this is a "retrospective appraisal with an effective date of 12/27/2007"? Please give me any advice. I found comparables which represent this property's value at 12/27/07 I just want to know if there are additional/extra "requirements" needed *such as an addendum* that's all..

 

[jakeboeger]

There are no special forms or addendums for a retrospective appraisal.

It is necessary, however, to allow the reader/intended user of the report to understand that the appraisal is retrospective. Label the report as "Retrospective", write in the past tense, etc.

You will also likely need to make extraordinary assumptions about the subjects physical characteristics as of the appraisal effective date. Unless you were actually there on that date.

 

[CANative]

Don't do anything until you've read (and completely understand) Statement 3 in USPAP.

 

[monkey525]

Thanks guys!

 

[Lee Lansford]

It's currently under contract and the lender/client wants to know what it was worth back in 12/27/07 I guess because it dropped so much in value. I think all I need to include (that differs from the standard appraisal) is that this is a "retrospective appraisal with an effective date of 12/27/2007"? Please give me any advice. ...

Might there be an Extraordinary Assumption that you will be working with?

 

[hastalavista]

There are no special forms or addendums for a retrospective appraisal.

Jake is correct.
However, there is a set of forms that I would not use: they are the current version of the Fannie/Freddie SFR, condo, 2-4, co-op or manufactured housing forms which state that the effective date of the appraisal is the same as the inspection date.

I'd also read SMT-3 as Greg suggests.
Most likely you'll need some EA.

Good luck.

 

[VolcanoLvr]

I just completed one of these critters, also for 2007.

While in most cases I would agree with Denis about form usage, sometimes the client specifies which one they want, and while not 'technically' correct it may be better to roll with it and add additional language as appropriate through the report.

I put this verbiage in Bold type on the Reconciliation section comment line just above the OMV and date: "NOTE: effective date of this report is retrospective to 6/26/2007 per client, with the inspection done on 1/18/2010 (this modifies the pre-printed statement below)."

Thanks Greg for reminding us about Stmt 3.