Whatever it was originally since you incorporate the prior report info into the new report, either by reference, attachment, etc.
I disagree with this; here's why:
An update is an appraisal. So, the update portion along with the updated report (regardless if incorporated by reference or attachment), if a written communication, must comply with SR2 rule and be an "appraisal report"
or a "restricted appraisal report".
I did my first appraisal 6-months ago and it complied with the appraisal report standard.
I do an update today: The market has changed and values have gone up. In my update, I "state" rather than summarize my conclusions (value today is $600k when it was $575k 6-months ago). I provide no summary of the analysis or market conditions. My "update" does not comply with the appraisal report ("summarize") requirements. While I have incorporated the old report and that may have summarized many of the necessary items to be compliant with the Appraisal Report standard, in total,
my new report is not compliant with the Appraisal Report standard.
This is why I (like a broken record) advise, for GSE work especially, if one is going to do an update and if it is to meet the Appraisal Report standard, then the update must "summarize" whatever information that would be expected, if this was an origination report, in the update.
For most of our GSE work in regard to "updates", what kinds of changes have occurred that is materially different than 6-months ago?
1. The market (even it if's characterization hasn't changed (was stable then, is stable now), there is likely new data that needs to be considered to determine the condition. New sales that, for example, continue to show the trend is "stable". That data constitutes new analysis which is different from what was analyzed the first time around.
2. Why not always the case, it is likely that there are new sales that should be considered; or, in the case where there are no new sales but market conditions have changed, a new analysis of those same sales is necessary.
I argue that the market conditions of an update need to be current with the new effective date. A 1004MC, supplemented as necessary, would meet the requirement of #1.
I argue that new sales data that has been considered needs to be summarized. I do not think it necessarily needs to be summarized to the same degree as was done in the original report; I do think it needs to be summarized by identifying the data considered to make the conclusion. For me, that would be address, MLS#, COE, List Price, Sale Price, size/bed/bath count, lot size, and condition. I summarize that data and use it to support my benchmark conclusion. This would meet the expectation of most clients and be consistent with the Appraisal Report summary requirements. #2 is addressed.
For complicated properties, I'd put in a new grid. The nature of the subject and similarity of the comparables available for comparison likely warrant more than just a short narrative summary. Again, #2 is addressed.
Finally, since it is a new appraisal, a new signed certification need be included.
They GSE update form, if completed by simply checking the box, does not meet the Appraisal Report standards no matter how detailed, complete the attached appraisal it is updating may be.
At least, that is how I see it and argue it.
