1004D Form, Appraisal Update

[Webbed Feet]

The appraisal update or 1004D has 2 purposes and one of them is not to provide a new opinion of value. It is to concur or not with the original appraisals market value, if you do not concur and you check off Yes that is has declined the lender should order a new appraisal. There is no box to indicate a new value as this form is not for that purpose. Dont forget to do your exterior inspection and revisit the market since the last appraisal and definately attach your 1004MC to the report.......it is a must! Charge more for these than you would a final inspection.

If any appraiser checks "Yes," the client just DID get a new real estate appraisal. IF any appraiser checks "No," the client just DID get a new real estate appraisal.

Concuring with the original appraisal report opinion of value has nothing to do with the new value that just got expressed, beyond the original opinion of value being a benchmark for the expression of the new opinion of value. I.E. "Less Than" or "Equal to or Greater Than." "Concuring" means that as of the original effective date of the first appraisal ordered does the appraiser agree with that opinion of value as of that past effective date? ... If the involved appraiser does NOT agree with the past opinion of value as of the past effective date then that appraiser is saying that they believe that the benchmark is invalid!!!! In most practical cases this means does the original appraiser still agree with his, or her, own opinion out of the past? Funny thing, most of us still agree with ourselves. .. If the benchmark is invalid the SOW of the 1004D cannot be completed. Hence, why most appraisers will not "Update" some other appraisers work as now the act on the 1004D turns into a full blown appraisal review as well as a new appraisal assignment. But stupid Fannie tried to design this ignorant form as if most appraisers would love to completely review other appraisers reports and provide a new opinion of value for $75.

 

[Webbed Feet]

I have been asked by one of my clients why I didn't provide a value on an appraisal update as I had stated on the update that the subject was in a declining market. .. snip.....

Both you and your client need to learn that real estate appraisals (opinion of value) come in a variety of flavors and that checking those boxes on the top half of the 1004D happens to be one of them. Appraisers that don't comprehend that can't possibly be in compliance with the USPAP when they sign a 1004D with the top half used, considering that the form does not comply with USPAP Standard One or Two by itself.

Oh, and by the way, working with a client that doesn't comprehend that might be a violation of the SOW Rule as well, as communication with the client obviously fell flat on its face at the time of engagement for the assignment with the needed SOW not identified by the appraiser.