Change in GLA from Plans & Specs

[Mike Kennedy]

the 1004d by design, SOW requirements, and intended use updates the original 1004. surprise!.

 

[cathy0405]

I appreciate all the advise but now am totally confused as to what I should do. I was asked to do a final inspection with recertification therefore I would assume the lender needs the Satisfactory Completion Certification with Recertification of Value form. The lender also wants one additional comparable sale less than 6 months old. I found two somewhat comparable sales however research was based on the original 3100 SF. If lender wants additional sales, I feel I definitely would be misleading still stating the 3100 SF with no workshop. Would it be acceptable for my new report to include the "satisfactory completion certificate with recertification of value" form which states that I certify that I have reinspected subject property, the requirements or conditions set forth in the appraisal report have been met and any required repairs or completion items have been done in a workmanlike manner (a true statement). Then I would itemize the additional improvements since they are "substantial changes from the data in the report and mark "do" adversely affect any property ratings or final estimate of value in the report. Then under the "Recertification of Value" section state "I hereby recertify that the value of the subject property is not less than $X as of the reinspection date. For the purpose of this assignment and at the request of the client, a new 1004 appraisal report based on current and actual conditions is not needed." Since an additional sale is required by the lender I would grid one or two sales based on the now 3900 SF home with the workshop that will show a higher value (already researched) than the original report. I would also include a new sketch of floor plan and workshop. Does this sound acceptable and in accordance to USPAP?

 

[Mike Kennedy]

was the contract of sale revised? are the 3+ original sales utilized truly comparable to the 3900sf house? is there a building permit / c.o. issued on the 3900sf (or just on the original house)?

 

[RSW]

I have a question for those of you that feel a new appraisal is needed. What if you do an appraisal from plans and specs and the P & S indicate the property will have vinyl and carpet flooring, laminate counters, modular tubs, and vinyl siding? You go back for the final after completion and the house has tile and wood flooring, granite counters, tile in the baths, brick and hardi-plank siding.

If I understand what you're saying, then a different house was built and a new appraisal is needed?

Kevin

No, what we are saying is, the original appraisal is null and void since it was based upon a hypothetical condition.

 

[Mr Rex]

was the contract of sale revised? are the 3+ original sales utilized truly comparable to the 3900sf house? is there a building permit / c.o. issued on the 3900sf (or just on the original house)?

Are 3 comparable sales required by USPAP or is that a 1004 requirement? Do you fully understand the SOW and the requirements under USPAP's SOW rule? Do you recognize the term SOW?

 

[Mike Kennedy]

Answer my questions, I' ll answer yours. (Please tell us you ARE aware of the minimum 3 closed COMPARABLE sale fannie 1004 requirement which IS part of the 1004 SOW)

 

[Mr Rex]

Ask you questions in the realm of USPAP and not a 1004 and I will answer.

 

[Mike Kennedy]

The USPAP requires Fannie SOW adherence when the client-requested/suggested/required SOW is determined by the Appraiser to allow for development of a credible OV and the order is accepted.

 

[Mr Rex]

So, where does it say on the Fannie form 1004D, that the only acceptable answer is a new 1004?

 

[cathy0405]

was the contract of sale revised? are the 3+ original sales utilized truly comparable to the 3900sf house? is there a building permit / c.o. issued on the 3900sf (or just on the original house)?

Good questions Mike, which I did not ask the HO (too late tonight). I was told that "we decided to finish the bonus room while house was being built". House was completed approximately 3-4 weeks ago. I would think the building permit/CO included this area since just finished but I do not know for certain. I can't recall if house was being subcontracted out or built by a contractor. No contract of sale was provided. Out of the seven comparables used (not one truly comparable), there is one sale with 4050 SF and the next largest at 3400.

Its strange that even the local appraisers here are giving me 2 different scenarios as presented in this message board. I have also sent an email to the Appraiser Institute to figure out if I would be in violation with USPAP based on my last post but the person I rely on so much is currently out of town!