Change in GLA from Plans & Specs

[David Dietz]

Who said anything about the form? They can take any type of value conclusion delivery system they wish. The point is the original appraisal is null and void since the property and value never came to fruition.

 

[Mr Rex]

It is a new assignment, it just doesn't require a new 1004.

 

[Mike Kennedy]

The lender has not asked the appraiser to opine a new value


The Lender most certainly has - as built - as of a new effective date.

 

[Richard Carlsen]

I called the lender to inform her of the change in GLA and workshop and was told to base the final and recert. on the original appraisal report since no additional value was necessary for loan purposes. I told her I should perform a new assignment since the GLA changed significantly (from 3100 SF to 4000 SF) and will have an impact on market value.

Additional finished upper level plus nce big workshop? Bet that's worth more on the market than the one the plans and specs called for.

Your assignment is two fold: Determine that it is done and determine that the value is at least that of the original report. That's it. Work is done and with the addition of the rooms and workshop, it is worth more than you stated. Why do you need to do a new report?

The client does not need it. The client is satisfied and only needs to know it is finished and worth at least what you appraised it for originally.

Stop trying to tell the client what they need and don't need. Just complete the assignment as ordered IAW rules, regulations and USPAP. That's what we get paid for. Not trying to tell our clients how to run their business.

 

[Mr Rex]

Mr Carlsen gets a gold star for common sense.

 

[RSW]

The value stated in the original appraisal report is null and void if the improvements were not built per the plans and specifications provided at the beginning of the appraisal assignment. The original appraisal was based upon a hypothetical condition that the improvement exist. Since the improvements are different than that of the plans and specifications given to the appraiser, then the value is not valid. What if the dwelling were built 800 sq. ft. smaller than the plans and specifications? Would you still do a recertification of value based upon the original appraisal? I don't think so! If you did, the value would be much lower and you would need to describe the differences. I would agree that this can be done on the 1004D but you will need to provide additional addendums to describe the improvements and changes. The 1004 is not necessary. But, it would make more sence to use the 1004 to adequately describe the improvements.

 

[Mike Kennedy]

Does it require new comps if you are saying its not worth less that X .. sure. We are in agreement there I hope.

So far, the OP has not indicated an answer to one of my questions above.....on exactly that element.

Are comparables for a 3100sf comparable to a 4000sf subject? Possibly. Probably not in most markets for new construction. Were any original comps 4000sf? Does the market indicate any CURRENT sales truly similar to a 4000sf dwelling? Only the OP can tell us.

At $200-300sf in MANY markets - indicating the NEW subject is not less than the Value rendered for a clearly INFERIOR orig subject - is meaningless and misleading.

 

[Mike Kennedy]

"Would you still do a recertification of value based upon the original appraisal? I don't think so!"

it's possible some would (hopefully not).

 

[Mr Rex]

The value stated in the original appraisal report is null and void if the improvements were not built per the plans and specifications provided at the beginning of the appraisal assignment. The original appraisal was based upon a hypothetical condition that the improvement exist. Since the improvements are different than that of the plans and specifications given to the appraiser, then the value is not valid. What if the dwelling were built 800 sq. ft. smaller than the plans and specifications? Would you still do a recertification of value based upon the original appraisal? I don't think so!

Apples and oranges, The subject was completed to plans and specs, plus the unfinished attic was finished and a workshop was built. Nothing was subtracted, changes were additive. Does it require some research to determine marketability? You bet. Does it require a new 1004? No.

 

[Mike Kennedy]

"Does it require a new 1004? No."


Does the Market demand one? Only the OP can decide. Does the SOW decision for the new assignment rest with the client - or the Appraiser?

Suggest referring to the pre-printed SOW and Cert 1 on the 1004D - most specifically to the word "CONCUR".