1004d When I Didn't Do Previous 1004

[Deleted member 128537]

I'd have no problem doing it and have done so many times in the past. Its a final inspection.

My only caveat is that I require a copy of the plans and specs to be sure the property was constructed accordingly. A couple of times I pulled up to a home under construction that looked nothing like the plans. Owner and builder had changed the design (cheaper). That makes it interesting.

Ok. So I decided that I would do it. I get a great deal of work from this client. But I also emailed them my concerns regarding the previous report. And I decided to load up the report with caveats regarding scope of work and that by doing the final it doesn't mean I agree with the opinion of value. But when I did the inspection I found numerous errors in the report regarding the critical elements of the house:
1). The floor plan of the house in the report was not the floor plan of the actual house. The actual house was a 4 bedroom 3 bath house, the report said 3 bedrooms 2 baths.
2). The garage was a 3 car, but the report said 2 car.

Those were the major differences, the rest were minor and inconsequential and can happen in the middle of building a house, but don't really affect value.

I called the AMC and told them what had occurred. The result was the AMC called the lender (that I do lots of direct work for), and so now I think they have decided to order another appraisal.

POINT: Had I not done the final inspection the bank (a reliable client) would have a useless report.

I also chided the AMC for hiring appraisers from outside the area. And that this is the result. The appraiser was incredibly sloppy. And I told them I can't believe this even got through a desk review. I think they felt a bit embarrassed.

 

[CindyR]

Ok. So I decided that I would do it. I get a great deal of work from this client. But I also emailed them my concerns regarding the previous report. And I decided to load up the report with caveats regarding scope of work and that by doing the final it doesn't mean I agree with the opinion of value. But when I did the inspection I found numerous errors in the report regarding the critical elements of the house:
1). The floor plan of the house in the report was not the floor plan of the actual house. The actual house was a 4 bedroom 3 bath house, the report said 3 bedrooms 2 baths.
2). The garage was a 3 car, but the report said 2 car.

Those were the major differences, the rest were minor and inconsequential and can happen in the middle of building a house, but don't really affect value.

I called the AMC and told them what had occurred. The result was the AMC called the lender (that I do lots of direct work for), and so now I think they have decided to order another appraisal.

POINT: Had I not done the final inspection the bank (a reliable client) would have a useless report.

I also chided the AMC for hiring appraisers from outside the area. And that this is the result. The appraiser was incredibly sloppy. And I told them I can't believe this even got through a desk review. I think they felt a bit embarrassed.

Good Job HSH!

 

[Mark K]

Ok. So I decided that I would do it.

.....

I also chided the AMC for hiring appraisers from outside the area. And that this is the result. The appraiser was incredibly sloppy. And I told them I can't believe this even got through a desk review. I think they felt a bit embarrassed.

Good learning experience; no need to fear these assignments. And your lender is probably grateful; that never hurts.


But...

I'm not sure I'd chide the client. They probably already know they dropped the ball, no need to pile on.

 

[Tru Red]

A completion report is just that. If the house is complete, and a notice of occupancy has been issued by the county, I'd complete the 1004D. I would charge a fee worthy of making a few dollars and clearly state the report was completed as a final inspection only.

 

[mp2277]

You are correct, it is not your job to review the OA. Simply do what you are being asked/hired to do and cash the check. Your certification that you have had no previous interest or activity in the past three years should cover any liability issues. I personally do not usually accept 1004D assignments when another appraiser did the OA because it's not usually worth it. However for a good client, or if I'm going to be in the area sometimes I do, and have been paid as much as $250 to do one in a rural area. I always include a statement similar to this in the appraisal update section even when I did the OA, "This is not an appraisal, appraisal review, or appraisal update. No value is stated nor implied. I appraised (or did not whatever applies) this property once before within the preceding 36 month period, xx/xxxx, same client."
IMO you are overthinking the situation.

 

[RSW]

A completion report is just that. If the house is complete, and a notice of occupancy has been issued by the county, I'd complete the 1004D. I would charge a fee worthy of making a few dollars and clearly state the report was completed as a final inspection only.

What happens when it is not complete and you have to state the effect it has on the value of the subject property? That is an appraisal. You would have to agree with the original value in order to determine the effect on the subject's value. No?

 

[Deleted member 128537]

What happens when it is not complete and you have to state the effect it has on the value of the subject property? That is an appraisal. You would have to agree with the original value in order to determine the effect on the subject's value. No?

Yes. And that is the problem with doing the 1004D if it isn't complete or if there is a significant discrepancy between what is in the 1004 and what actually is; which is what happened in my case.

 

[mp2277]

But I also emailed them my concerns regarding the previous report. And I decided to load up the report with caveats regarding scope of work and that by doing the final it doesn't mean I agree with the opinion of value. But when I did the inspection I found numerous errors in the report regarding the critical elements of the house:
1). The floor plan of the house in the report was not the floor plan of the actual house. The actual house was a 4 bedroom 3 bath house, the report said 3 bedrooms 2 baths.

So, you actually did an appraisal review and submitted an opinion of value by default. Get that work file in order

 

[Deleted member 128537]

So, you actually did an appraisal review and submitted an opinion of value by default. Get that work file in order

When doing the 1004D you are required on the final inspection to determine if the improvements are done according to the original appraisal. That is not a review. That is looking at the report and concluding whether or not the improvements match the report. In this case the appraiser made the errors, How do I know? Because when the OA put in the floor plan it stated on the top of the sheet it was to be a 4 bedroom and 3 bath home. Yet the OA didn't take the effort to put in the correct floor plan! So it wasn't the contractor's change, it was the OA error. Any moron could see the difference. Doesn't take an appraiser.

 

[mp2277]

When doing the 1004D you are required on the final inspection to determine if the improvements are done according to the original appraisal. That is not a review. That is looking at the report and concluding whether or not the improvements match the report. In this case the appraiser made the errors, How do I know? Because when the OA put in the floor plan it stated on the top of the sheet it was to be a 4 bedroom and 3 bath home. Yet the OA didn't take the effort to put in the correct floor plan! So it wasn't the contractor's change, it was the OA error. Any moron could see the difference. Doesn't take an appraiser.

I see you edited your remarks. Here is your original, too damn good to throw out LOL
"When doing the 1004D you are required on the final inspection to determine if the improvements are done according to the original appraisal. That is not a review. That is looking at the report and concluding whether or not the improvements match the report. You should know the difference. If not then go back to school" <<< Your words

OK, let's go to school: You said "But I also emailed them my concerns regarding the previous report. (APPRAISAL REVIEW WRITTEN REPORT) And I decided to load up the report with caveats regarding scope of work (APPRAISAL REVIEW) and that by doing the final it doesn't mean I agree with the opinion of value (POSSIBLE OPINION OF VALUE). But when I did the inspection I found numerous errors in the report regarding the critical elements of the house(APPRAISAL REVIEW)" It is my opinion when reviewing an appraisal that one can say the value appears to be supported or the the value appears unsupported but to say I agree/disagree with the opined value is an appraisal by default. Class dismissed.