• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

1004d Update Not For Original Report

Status
Not open for further replies.

ipari21

Sophomore Member
Joined
Apr 17, 2008
Professional Status
Certified Residential Appraiser
State
California
I performed an appraisal on 05/17 for a purchase transaction that was an As-Is report.
Today, I received an assigment for a 1004 update reporting for a refinance purpose with new loan number.
I've confused that I can do handle this 1004 update.
Anyone have experience for this ?
Any advise would be helpful.
Thank you.
 

nstanbru

Senior Member
Joined
Feb 19, 2009
Professional Status
Certified General Appraiser
State
California
Some here will say you can and some will say you can't. I'm not going to say either. But, if I did an appraisal 4 months ago (regardless of the prior or current intended use), I would tell the client I have to do a new appraisal which would include an interior/exterior inspection (no "drive by" for me). Too many things could have changed since the first appraisal, both with the home and with the market. My gut reaction to the 1004D request was they don't want to pay for an appraisal which, in reality, is what you would be doing anyhow. My advice? Do a new appraisal.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
I'm not far off from nstanbru's advice (but for slightly different reasons).

Yes, the assignment can be completed as an update.
However and in my opinion, the time it will take you to augment the one-page form so that it is USPAP compliant (and, you should know that the one-page form, by itself, is not compliant under any circumstances) will take more time than the 15+ minutes it takes you to reinspect the subject property (assuming nothing has changed) and cloning the old report with updates in it where appropriate.

The lender likely thinks the 1004D is an appropriate substitute for new appraisal completed on the 1004... and it may be.
The lender likely thinks the 1004D can be turned around faster (with the exception of scheduling the appointment, they may be correct).
The lender likely thinks the 1004D will be less expensive; thus saving the borrower some money... again, that is likely the case. But I doubt they've considered that the amount of work the appraiser is saving isn't that significant; they probably think the one-page form is fine as-is.

While the turn-time could be shortened (due not needing to coordinate with the borrowers for an interior inspection) the amount of work you'll need to put into this update isn't that much different from a 1004. Quicker turn-time (yes) but no significant savings on the appraiser's work needed for the development and reporting process.
I don't know about you, but I'd charge a reduced fee for an assignment I just completed 3-4 months ago and no significant changes to the improvements/property have occurred. But that reduced fee will be the same for a 1004 as it would be for a 1004D (in this scenario); so if I'm the appraiser, there is no cost savings to the borrower... the amount of work I need to do is nearly the same.

Your call- good luck!
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
4 months ago, it's outdated. New appraisal, maybe a discount since you save time in the inspection.
You'll have to do new comp search and market analysis either way. :peace:
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks