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1004d Update: Appraisal? Exposure Time?

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BA3

Thread Starter
Freshman Member
Joined
Feb 11, 2009
Professional Status
Certified Residential Appraiser
State
Washington
Calling the 1004d Appraisal Update Form an "Appraisal" does not make sense to me. Furthermore, requiring a statement regarding Exposure Time because it is considered an Appraisal also makes no sense to me.

When completing the 1004d Update section, I am not providing any opinion of value...I am only stating the appraised value did/or did not decline since the effective date of the prior appraisal. So why is that considered an "Appraisal"? it's just an analysis regarding market conditions as they pertain to the property since the effective date of the appraisal...did it decrease in value or not?

But, if there are valid reasons to call the 1004d an appraisal report that maybe I am missing...then I need to provide a statement of Exposure Time. But, how can I provide a statement of Exposure Time when I have to have an opinion of value in order to accurately estimate Exposure Time?

I am really hoping somebody with extensive knowledge can fully explain this to me because I am failing to see how a 1004d Update is considered an appraisal and subsequently how estimating Exposure Time can be justified as necessary with this form .
 

ramrcdk

Senior Member
Joined
Jan 15, 2008
Professional Status
Certified Residential Appraiser
State
North Carolina
Calling the 1004d Appraisal Update Form an "Appraisal" does not make sense to me. Furthermore, requiring a statement regarding Exposure Time because it is considered an Appraisal also makes no sense to me.
When completing the 1004d Update section, I am not providing any opinion of value...I am only stating the appraised value did/or did not decline since the effective date of the prior appraisal. So why is that considered an "Appraisal"? it's just an analysis regarding market conditions as they pertain to the property since the effective date of the appraisal...did it decrease in value or not?
But, if there are valid reasons to call the 1004d an appraisal report that maybe I am missing...then I need to provide a statement of Exposure Time. But, how can I provide a statement of Exposure Time when I have to have an opinion of value in order to accurately estimate Exposure Time?
I am really hoping somebody with extensive knowledge can fully explain this to me because I am failing to see how a 1004d Update is considered an appraisal and subsequently how estimating Exposure Time can be justified as necessary with this form .
Gosh, not sure I understand. You completed a "appraisal report" on the "subject property" and the client wants you to now complete a : 1004d Update Section of the Form?
 

NP_MAI

Member
Joined
Apr 10, 2018
Professional Status
Certified General Appraiser
State
Florida
When completing the 1004d Update section, I am not providing any opinion of value...I am only stating the appraised value did/or did not decline since the effective date of the prior appraisal.
I know nothing about form reports, however; a major lender often asks us to certify that values are no less than a previously appraised value. Both that, and what you describe (in bold), are appraisals. You are still providing a value for the property and you have to have the work file support for your opinion. Market exposure time should not be difficult to determine, essentially your work file could consist of your previous work file plus new sales comps and listings that support the previous value. You can extrapolate market exposure time from the new data.
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
An appraisal can be a single number such as $100,000 or it can be a range such as $80,000 to $90,000 or it can be a direction in value. The 1004d is asking if the value has declined since the original appraisal was completed. If it has, then that is a direction in value. If it has not, then you are certifying the original value is still good. All of USPAP applies in either case.
 

NP_MAI

Member
Joined
Apr 10, 2018
Professional Status
Certified General Appraiser
State
Florida
An appraisal can be a single number such as $100,000 or it can be a range such as $80,000 to $90,000 or it can be a direction in value. The 1004d is asking if the value has declined since the original appraisal was completed. If it has, then that is a direction in value. If it has not, then you are certifying the original value is still good. All of USPAP applies in either case.
:clapping: you said it better than me:beer:
 

ramrcdk

Senior Member
Joined
Jan 15, 2008
Professional Status
Certified Residential Appraiser
State
North Carolina
Gosh, not sure I understand. You completed a "appraisal report" on the "subject property" and the client wants you to now complete a : 1004d Update Section of the Form?


A few have said in short, the Form 1004D is an extension of the Appraisal Report, be it a Final or an Update. In itself, it is not applicable if there is no previous report...if I understand the question.
 

ICT RE

Junior Member
Joined
Oct 7, 2011
Professional Status
Certified Residential Appraiser
State
Kansas
If your OMV for a given property is $X, via a 1004 on Y date, then when you provide a client with a 1004D you are saying it is again worth $X (if it is, in fact) but on date Z. Those are most definitely two distinct value opinions. The fact the OMV didn’t move doesn’t change that.

The language of that form is misleading, at least as it relates to an appraiser’s SOW and workfile.
 

ICT RE

Junior Member
Joined
Oct 7, 2011
Professional Status
Certified Residential Appraiser
State
Kansas
The answer to your question can be found on Page 274 of USPAP at #201 "Appraisal Update with no Change of Value" and also on Page 275, #204
& #205
The USPAP FAQ; what a savior of sanity it is. If the USPAP Standards are the Constitution and Bill of Rights that the legal Illuminati debate in smoking jackets and mahogany paneled rooms, then the FAQ is the established and understandable case law applicable to real life for the rest of us.
 
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