1004D completion on report from 12+ months ago

[glenn walker]

And we all wonder why lenders want to get rid of us

 

[shrubberyvaluation]

The point I was making. In todays litigious society. It wouldn't take much of an attorney to point out the requirements of the report and claim the expansion of the scope was not part of the report requirements. Just sayin.

I agree, but someone not understanding the forms could also claim you ignored it. I think the best thing to do is a generic statement that no other alterations after the effective date are considered in this.

 

[shrubberyvaluation]

And we all wonder why lenders want to get rid of us

Because we don't want all of the liability for their decisions?

 

[CGinMN]

What if you just describe it as having a negative impact, or no impact. Is that enough to consider it an appraisal?

Yep, that's a benchmark opinion of value.

 

[shrubberyvaluation]

Yep, that's a benchmark opinion of value.

I agree. it would of been nice if they had (competent) appraisers make these forms or at the very least review them.

 

[ZZGAMAZZ]

Then you have to mark it not completed and then schedule a second trip back when it is.

When you go back, your comment might be something like " The subject is completed per plans and specs of kitchen and baths finished . The current configuration has been changed by the owner to open up the dining wall to the kitchen for increased utility and appeal, which does not change the original value opinion on Jan 2021 which was contingent on the kitchen being completed."

J.G., but wouldn't the appraiser be addressing "value" as well as "completion" by following your advice?

 

[J Grant]

J.G., but wouldn't the appraiser be addressing "value" as well as "completion" by following your advice?

pehaps. At this point I have whiplash from this thread!

I was trying to explain the subsequent interior wall removal has no connection, value or otherwise with the original effective date appraisal opinion.

 

[The Bob]

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?

You're over thinking this. Your SOW is only to verify that the original required work was done. State exactly what that work was in the SOW for the 1004D. The rest has no bearing on that.

I get requests for 1004D completions for other appraisers that are on vacation, have ghosted, etc... and I state exactly what I'm verifying in my SOW. Lender says, "will send appraisal over..." I say "No, just tell me exactly what you want confirmed and exactly what pictures you want".
It's a simple form appraiser's like to make complicated.