1004D completion on report from 12+ months ago

[TN Pro]

Technically by viewing the kitchen you have expanded the scope of work for the assignment, but you can't unsee it. Mark yes, add a comment that the kitchen is now under renovation. Include photos of the completed work and kitchen in your photo addendum.

Nonesense. There is is no "technically" anything here. There is nothing to unsee. Mention it, yes. anything the borrower does after your effective date has no bearing on your work

 

[TN Pro]

Now that I know his original 1004D did not include a kitchen at all but the house had a functional kitchen, it now does not have a functional kitchen - it has a torn up half finished kitchen I assume is not functional in present state for cooking etc- at this point imo the OP should discuss it with client and see how they want him to proceed.

why? the order is for the repair from the original report. The kitchen has zero affect on what the appraiser was hired to do.

 

[J Grant]

Nonesense. There is is no "technically" anything here. There is nothing to unsee. Mention it, yes. anything the borrower after your effective date has no bearing on your work

Idk- this is a tough one.

The original appraisal had a dated but functional kitchen and was subject to a new /upgraded bath completion.

The problem is Now the subject has a defect and repair issue wrt no longer having a functional kitchen as the original is torn up. So imo the OP should discuss it with client and see how to handed it -does client want a second return trip when owner is done, or does lender want a new appraisal, idk. Weird situation.

 

[jay trotta]

I'm sorry, I know I may have been unclear. The only original work in progress was that bathroom The kitchen was fine and no one told me anything was going to happen to it. I showed up and saw that they were upgrading it.

Additions, alterations and upgrades are a PIA, but that in part is caused by the Owner, who just noticed, I want to do this also. I will assume your O R was based on what was noted as of the effective date and the OMV was based on that. New Improvements & upgrades would require a new Report.
So, my question to the Client would be, in regard to the OAR the items noted are complete. But you (the client) should be aware other improvements are taking place and let them decide how they want to approach that.
We are still working with an unprecedented (C-19) backlog and when an HO changes or the contractor wants a specific "mechanic", you fall into their "timeline", nobody Elses. The Client will need to decide how they wish to approach those changes.
Good Luck

 

[Tacoman]

Technically by viewing the kitchen you have expanded the scope of work for the assignment, but you can't unsee it. Mark yes, add a comment that the kitchen is now under renovation. Include photos of the completed work and kitchen in your photo addendum.

Ha, yeah they had trouble opening the front door. If I didn't have to go through the back I never would have known!

Additions, alterations and upgrades are a PIA, but that in part is caused by the Owner, who just noticed, I want to do this also. I will assume your O R was based on what was noted as of the effective date and the OMV was based on that. New Improvements & upgrades would require a new Report.
So, my question to the Client would be, in regard to the OAR the items noted are complete. But you (the client) should be aware other improvements are taking place and let them decide how they want to approach that.
We are still working with an unprecedented (C-19) backlog and when an HO changes or the contractor wants a specific "mechanic", you fall into their "timeline", nobody Elses. The Client will need to decide how they wish to approach those changes.
Good Luck

Yes, this is where I am leaning. I could have AMC ask the question of the Lender or just mark complete but have an addendum with photos "please note additional upgrades in progress..." and see what they say after that.

 

[Dublin ohio]

I tend to do what the report is asking for.

 

[shrubberyvaluation]

Hi hoping someone has run into this. I got a 1004D completion assignment for an original appraisal I did from early 2021! So now we're pushing nearly 2 years.

I reviewed Fannie Mae rules regarding Appraisal Updates and I know for an update, they'd need a new appraisal. But this is only a completion and from what I can see, there is no time limit for a completion. (Just as some background--I don't have all the details but from what I understand, it took 7 months just to get a plumber lined up and they started late)

It's a little nervewracking since they share the same form but it does say Update and/or Completion. I think the time limit does not apply on its face.

The real issue I'm wrestling with is the homeowner is doing major work in the kitchen now. The checkbox on the form says Have the improvements been completed in accordance with the requirements and conditions stated in the original appraisal report? If no, describe any impact on the opinion of market value.

The required work originally specified is done. But you could argue that the IMPLIED (not STATED) conditions of the original have changed. In other words, the improvement was completed but not in accordance with the original conditions which would be "the rest of the house is at least as good as pictured." I want to check yes, and then note that new work is in progress, the original conditions have changed but a new appraisal is required to determine any impact on value.

EDIT: Also as I think about how these forms are notoriously poorly written, could "conditions stated" mean something else? Could it be C3, for example? Well, as-is, it's not a C3 anymore, it's C4 (kitchen is still functional, just a missing wall that is not patched up). Does condition refer only to "the condition that the bathroom be completed?" Does it apply to everything? Imagine an extreme hypothetical situation where you went to make sure a bathroom was done but the rest of the house was missing.

Has anyone dealt with this situation? What did you do?

Just make it clear that you are talking about the impact of market value on the effective date of the original report and that other changes could of been doen to the property since the last property inspection.

 

[shrubberyvaluation]

I tend to do what the report is asking for.

View attachment 70966

I agree, I would add in CMA verbiage even though its not required.

 

[J Grant]

Ha, yeah they had trouble opening the front door. If I didn't have to go through the back I never would have known!

Yes, this is where I am leaning. I could have AMC ask the question of the Lender or just mark complete but have an addendum with photos "please note additional upgrades in progress..." and see what they say after that.

I don't get how you can say it is complete. Yes, the bath condition is complete, but now you have a house where the original kitchen is torn out and on inspection date there is no longer a functional kitchen . Now the house has a big fat repair issue/defect that it did not have before (regardless of that in they are renovating for a new kitchen )

I'd put it on hold and ask AMC how to proceed or mark no not complete and explain why wrt a defect exists now that was not present in original appraisal ( and take photos and comment the original kitchen was removed because of a renovation in progress)

 

[shrubberyvaluation]

Idk- this is a tough one.

The original appraisal had a dated but functional kitchen and was subject to a new /upgraded bath completion.

The problem is Now the subject has a defect and repair issue wrt no longer having a functional kitchen as the original is torn up. So imo the OP should discuss it with client and see how to handed it -does client want a second return trip when owner is done, or does lender want a new appraisal, idk. Weird situation.

You are valuing it on the effective date with the hypothetical of the repairs/alterations being complete stated in the report. It is clear as day from a reporting standpoint, but I would put in CMA verbiage as if litigation would happen they may not understand the value is still for the effective date, and not the current date.