appraisal updates

[Charles Sciba]

can lenders request consecutive appraisal updates on the same appraisal every 6 months

 

[DWiley]

To answer the literal question, sure. An "update" is just a new appraisal (usually at least partially based on prior data collection). A client can order an appraisal anytime

Are there limits on how long Fannie Mae will accept an update on Form 1004D? Sure, you can find those in the Selling Guide. However, many updates have nothing to do with a GSE.

 

[Terrel L. Shields]

can lenders request consecutive appraisal updates on the same appraisal every 6 months

sure, and charge for them. There is a procedure for doing such by reference or by simple reappraisal. I just updated a mineral report that was 4 years old. I ran new numbers upon the decline and the remaining reserves and it dovetailed very well with our original projections when we had limited reserve information. And the various income approaches were very consistent internally and with the original report (as a wasting asset it, of course, was worth much less than 4 years ago but it had also earned $300,000 plus in that 4 years.) I charge by the hour and in this case, the decline curves generated were charged for a set fee, but in the end I spent only 5 hours updating the report and in the end, the fee was barely half that of the first appraisal.

When I have seen a bank ask for frequent updates, it is almost always a case of foreclosure and bank owned real estate

 

[Michigan CG]

They can ask for anything they want. Whether you accept those new assignments (that is what they are) is up to you.

 

[alexdegrate]

Sure they can request any number of updates. But when you charge, do not confuse the upper part (Appraisal Update) of the 1004D with the bottom (Certificate of Completion). While I'll charge $150 for a Completion, I won't take less than $225-$250 for an Update. To me that's like a new appraisal with all the research and accountability, sans report and inspection.

 

[CANative]

To me that's like a new appraisal with all the research and accountability, sans report and inspection.

That because it IS new appraisal assignment.

 

[bnmappraisal]

what CANative said and I'll just add - remember to add the "prior services" comment

 

[Tim The Enchanter]

Add the prior services comment and do it.
A new appraisal of a property you did 6 months ago should be a lot easier.
Duck soup. Gravy.

 

[Tom4value]

My favorite ***** to the client is new construction. When the house is done they order the 1004D for the completion. Fee is usually just barely worth the time to go out there, take photos and type the report....actually not but will do, anyway.

They then come back with a “revision” to the report. They say, “state on the report that ‘the value has not decreased since the original appraisal’.”

BULL CRAP!!!!!!! You now want an appraisal update. Fee is $150.

 

[RSW]

what CANative said and I'll just add - remember to add the "prior services" comment

Prior service for the original appraisal and for the other 1004d update report.