Appraisal Update & USPAP Addendum

[hastalavista]

I don't think AO3 states that as a requirement does it in cases of incorporation by reference (same appraiser/same client)?

Lines 66 through 75, 2016/2017.

If incorporated by reference, the requirement is that the original intended users (not just client) and appraiser's firm (not necessarily the original appraiser) be the same. So when I work for you, I can update your report by reference!

 

[Terrel L. Shields]

I think I am a little slow here following...

 

[hastalavista]

I find the semantics problematic to say I have an appraisal report embedded inside a restricted report...?

That problem is easily solved: Your new report (the update) is either an Appraisal Report or a Restricted Report. What will define the reporting option for your new report is if your new report "states" or "summarizes" those new and necessary analyses you preformed to conclude your new (updated) opinion of value on the new effective date.

 

[J Grant]

The way the software works for URAR products, the software does not let us have both major forms present. It wipes out the 1004 report and replaces it with an update form (1004 d). An appraiser can make whatever reference they want to the old appraisal, but the 1004 d is its own stand alone form.

It is X months after the original report, so a discussion of market conditions/trends along with naming or attaching a list of sales and listings relied on.....one can keep them in work file too or use an 1004 MC and keep the new comps in workfile.

 

[hastalavista]

The way the software works for URAR products, the software does not let us have both major forms present. It wipes out the 1004 report and replaces it with an update form (1004 d). An appraiser can make whatever reference they want to the old appraisal, but the 1004 d is its own stand alone form.

I don't think that is the case for all software.
I use Clickforms (Bradford). I can add the 1004D to a file that has an existing 1004, etc.
Alternatively, I would argue that "by attachment" can be achieved by "attaching" the original appraisal's pdf to the communication that has the new appraisal (update) pdf.

 

[Mr Rex]

An update of an Appraisal Report would be an Appraisal Report. An update of a Restricted Appraisal Report would be a Restricted Appraisal Report. Unless otherwise denoted.

 

[hastalavista]

I'll just push my opinion one more time....

An "update" is a new appraisal.
What the update-process allows us to do is incorporate those relevant findings from a previous appraisal into a new appraisal. We don't have to re-do what we've already done if there is no reason to re-do it.
The reporting option we use is unrelated to the old appraisal. The old appraisal is simply data and analysis that applies to the new assignment. One could have a very detailed "appraisal report" incorporated, referenced, etc., into the new appraisal.
What defines the new appraisal's reporting format is how its results are reported. Those results are either "summarized" or "stated". If "summarized", then the new report is an "appraisal report". If stated, then the new appraisal's communication is consistent with a restricted report.

The reporting options create the minimum reporting requirements.
A written appraisal report must be compliant with one of the two reporting options.
What has been incorporated into a new appraisal does not determine what reporting option the new appraisal complies with. That the new appraisal's analysis is stated or summarized does determine what reporting option is used.

Simply checking this box:


Without providing the summary outlined below:


Does not meet the SR2-2 standard.

Checking the box only does meet this SR2-3 (restricted appraisal report) requirement:


If one only checks the box, one has stated the results/conclusion of the new appraisal. That isn't consistent with an appraisal report's reporting requirements, regardless if the original appraisal report used as part of the update process has summarized all of its findings.

 

[Mr Rex]

How does the SOW differ?

 

[Webbed Feet]

Do you recognize an Appraisal Update as an

Appraisal Report or a Restricted Appraisal Report?

Just taking a poll not looking for sarcastic quips.

No....... That is the answer. It's not a report. It's a new assignment and a new appraisal. D. D. pretty much wrapped up all of the rest that matters. I'm just agreeing with him and pointing out the answer is neither of them because the words "Appraisal Update" does not adequately describe an assignment nor a scope of work.

 

[TRESinc]

The way the software works for URAR products, the software does not let us have both major forms present. It wipes out the 1004 report and replaces it with an update form (1004 d). An appraiser can make whatever reference they want to the old appraisal, but the 1004 d is its own stand alone form.

i don't believe this to be true either. my current software allows it and when i used to use the ice cream people they had two versions of the 1004D - major and non-major - you just had to select the right one.