Does a 1004D recert of value require a drive by inspection?

[gorillakimchi]

Hi everybody, Feb is already coming and time flies fast

I received a 1004D Recertification of Value order and wanted to clarify expectations regarding subject inspection. The original appraisal was already completed (not by me).

The 1004D was ordered due to a delayed closing and the appraisal validity period expiring. There are no subject to conditions, no repairs, no disaster designation, and no special circumstances.

I’ve never done a 1004D Recert before, so I’m trying to confirm whether the scope is typically handled as a desktop assignment, or whether most appraisers still perform a drive by exterior inspection as part of their due diligence.

I’ve seen mixed opinions & some appraisers always drive by for liability protection, while others treat it as desktop unless the lender specifically conditions an inspection.

Curious how others handle this in practice. Thanks in advance.

 

[swandel1]

Make sure you read and understand the SCOPE OF WORK which is right on the 1004D form. So if you read these, you will see that YES, exterior inspection us required. More important is YOU MUST CONCUR WITH THE ORIGINAL APPRAISAL. You are accepting co-responsibilty for the original appraisal.

 

[Surf Cat]

To answer the question of the headline of the thread, absolutely. You wanna make sure there’s no significant changes to the subject property since the original appraisal.

But here’s the problem…..

The original appraisal was already completed (not by me).

I wouldn’t do this as I did not do the original report. They’re just looking to get another appraisal out of you on the cheap. I wouldn’t care if they sent me the original report.

 

[J Grant]

Make sure you read and understand the SCOPE OF WORK which is right on the 1004D form. So if you read these, you will see that YES, exterior inspection us required. More important is YOU MUST CONCUR WITH THE ORIGINAL APPRAISAL. You are accepting co-responsibilty for the original appraisal.

Revised...this is a confusing question as asked on the form.... I concur with the original appraisal, since The 1004 D asks if the value has declined yes or no
I agree, typically it requires an external drive by photo, but the OP should ask their client.

For the OP - it is not called a recert of value anymore, it is an update. Charge enough for your time or decline it.

 

[Fernando]

To answer the question of the headline of the thread, absolutely. You wanna make sure there’s no significant changes to the subject property since the original appraisal.

But here’s the problem…..


I wouldn’t do this as I did not do the original report. They’re just looking to get another appraisal out of you on the cheap. I wouldn’t care if they sent me the original report.

I never do a recert for low fee when I didn't do the original report.
I always ask why didn't lender go back to original appraiser?
Original appraiser is in best position to do the recert at the low fee.

 

[TerryRohrer]

Actually, we do not have to concur with the original appraisal. The 1004 D asks if the value has declined yes or no
I agree, typically it requires an external drive by photo, but the OP should ask their client.

For the OP - it is not called a recert of value anymore, it is an update. Charge enough for your time or decline it.

Have you ever actually read the form? As swandel1 accurately stated, it says, verbatim, " The appraiser must, at a minimum: (1) concur with the original appraisal, (2) perform an exterior inspection of the subject property from at least the street, and (3) research, verify, and analyze current market data in order to determine if the property has declined in value since the effective date of the original appraisal." By accepting the assignment, you accept that condition.

 

[swandel1]

Actually, we do not have to concur with the original appraisal. The 1004 D asks if the value has declined yes or no
I agree, typically it requires an external drive by photo, but the OP should ask their client.

For the OP - it is not called a recert of value anymore, it is an update. Charge enough for your time or decline it.

The Scope of Work clearly states "The appraiser must, at a minimum: 1) concur with the original appraisal....". This is what you are signing. Where is it written otherwise?

 

[Surf Cat]

Actually, we do not have to concur with the original appraisal. The 1004 D asks if the value has declined yes or no
I agree, typically it requires an external drive by photo, but the OP should ask their client.

For the OP - it is not called a recert of value anymore, it is an update. Charge enough for your time or decline it.

I respectfully disagree.

If the substitute appraiser identifies issues with the original report, they may be held liable for failing to detect them, especially if they certify the value has not declined.

 

[Fernando]

Fee too low. Liability too high. Ain't worth it to me.

 

[ZZGAMAZZ]

I respectfully disagree.

If the substitute appraiser identifies issues with the original report, they may be held liable for failing to detect them, especially if they certify the value has not declined.

A tangle distinction presumably exists between a 1004D confirmation that value hasn't declined, and a an appraisal review assignment. Can an appraiser who performs a 1004D as follow-up to the original appraiser/appraisal scope away responsibility for anything other than the value comparison, with a personal cert of sorts?