Change in GLA from Plans & Specs

[Mr Rex]

Have we forgotten that an appraisal can be a range of values? The assignments SOW simply wants to know if the improvements as per plans and specs are complete. They are, and then some. The SOW also is to answer the question "Has the market value of the subject value declined since the effective date of the prior appraisal". Well with 800sf of additional GLA and a detached workshop, I would think a very quick search of MLS data would indicate that no it has not declined. The lender has not asked the appraiser to opine a new value, but is it at least X, with X being the value from the previous appraisal. No wonder we as an industry are looked upon as whiners and a speed bump in the process. We as "form filling" appraisers need to lose the mentality that the only wat to provide an appraisal service is a 1004. Use the 1004D, and make sure you touch all the bases per Std 1 and Std 2, collect a decent fee for your time, and carry on.

 

[Mike Kennedy]

if the improvements as per plans and specs are complete.


No.

 

[Mr Rex]

Where does it say they improvements per plans and specs are incomplete? They are complete, and then some.

 

[Mike Kennedy]

to Cathy / OP : a. did the original plans require a building permit/ C.O.

b. does the municipality (if applicable) require a revised / new
set & BP ???

c. suggest one does not assume what was actually built
complies with ordinances unless physically reviewing C.O.

d. what is the market reaction to the NEW dwelling?

e. submitting a value opinion which was based on the ORIG
dwelling simply by indicating the prior value has not
declined without providing CURRENT market data analyis
in support of that conclusion - given the NEW subject -
would be misleading. did the range of comparable GLA in the
original report encompass the expanded NEW subject?

 

[Mike Kennedy]

Where does it say they improvements per plans and specs are incomplete? They are complete, and then some.

"per plans & specs" submitted as of the Orig. Effective Date supported by a sketch rendering (if so).

What they built is not what was appraised.:icon_idea: Does the Appraiser not have an Ethical obligation to ACCURATELY describe a subject and opine market value for its' attributes - AS BUILT?

The subject property as described, supported by the plans & specifications, and the Appraisers' GLA estimate does not exist.


1004D requires certification that WAS to be built - WAS built.

It wasn't.

 

[PropertyEconomics]

Have we forgotten that an appraisal can be a range of values? The assignments SOW simply wants to know if the improvements as per plans and specs are complete. They are, and then some. The SOW also is to answer the question "Has the market value of the subject value declined since the effective date of the prior appraisal". Well with 800sf of additional GLA and a detached workshop, I would think a very quick search of MLS data would indicate that no it has not declined. The lender has not asked the appraiser to opine a new value, but is it at least X, with X being the value from the previous appraisal. No wonder we as an industry are looked upon as whiners and a speed bump in the process. We as "form filling" appraisers need to lose the mentality that the only wat to provide an appraisal service is a 1004. Use the 1004D, and make sure you touch all the bases per Std 1 and Std 2, collect a decent fee for your time, and carry on.

Here Here ....

I totally agree with you Mr Rex. One can in fact do a complete appraisal on the final inspection form saying the value is not less than X as Mr Rex describes. A few sales in your work file, showing your completion of the "re appraisal" in compliance with USPAP is certainly acceptable.

The observed changes DO NOT ADVERSELY EFFECT VALUE .... (my assumption as that of Mr Rex). Charge accordingly and move on.

To argue with yoru client that you have to do a complete and new appraisal (ie 1004 form as complete) is utter hogwash ... it can be done exactly as Mr Rex has described.

 

[Mr Rex]

Some folks can't distinguish the 1004 from USPAP.

 

[David Dietz]

The assignments SOW simply wants to know if the improvements as per plans and specs are complete. They are,

No they are not the appraisal valued a 3100Sf home not a 4000sf home. The board or a lawyer would have a field day with that one.

Well with 800sf of additional GLA and a detached workshop, I would think a very quick search of MLS data would indicate that no it has not declined.

Not necessary true in good old FLA. Besides proper market research for a value conclusion would take alot longer then a few minutes.

The lender has not asked the appraiser to opine a new value, but is it at least X, with X being the value from the previous appraisal.

New date, different house new value and possibly different market conditions. New assignment!!

No wonder we as an industry are looked upon as whiners and a speed bump in the process. We as "form filling" appraisers need to lose the mentality that the only wat to provide an appraisal service is a 1004. Use the 1004D,

I really hope this was meant to be sarcastic.

 

[Mike Kennedy]

..... 900 Sf

 

[PropertyEconomics]

"per plans & specs" submitted as of the Orig. Effective Date supported by a sketch rendering (if so).

What they built is not what was appraised.:icon_idea: Does the Appraiser not have an Ethical obligation to ACCURATELY describe a subject?

The subject property as described, supported by the plans & specifications, and the Appraisers' GLA estimate does not exist.

Mike .. more than what was described exists thus that which was originally described exists, and then some. Of course the improvements as completed have to be described. It says so on the completion form. They are complete, and they are above and beyond that which was presented in the plans and specifications and a value of Greater Than X is perfectly acceptable. And now I read you as saying that a value not less that X is misleading ... please show me in USPAP where a specific point value is required by the document. A point value, a range of values, less than or greater than values are all acceptable within an appraisal and the are not misleading as long as they are true statements.
The appraiser should fully describe what they found upon inspection, but that doesnt mean the appraiser has to complete a new 1004 ... a new appraisal can be done on the inspection form. Is it a new assignment ... sure. Does it require new comps if you are saying its not worth less that X .. sure. We are in agreement there I hope.
How much the appraiser charges is totally up to them. It is a new assignment and can be completed as stated.