Doing someone else's final-What's up with that?

[Richard Carlsen]

The Satisfactory Completion Certificate that I use does not require me to make any statement of value.

I would think that one could do the completion inspection as required by another appraiser as long as you made no judgment of value. If you do, you are bound by USPAP.

I would not want to get into reviewing the work of another appraiser in order to do a completion inspection as again, you could be venturing into USPAP guideline areas. A simple visit to the site and a check to see that the unfinished items required are done or that the construction is IAW plans and specs does not entail any value judgment. Sounds like no-brainer income to me.

 

[Joe Birrell (NY)]

I've had this happen once, it seems appraiser was removed from the so-called "approved list" - it can happen legitmately and I understand that lender must explain why they are using a different appraiser.

 

[Verne Hebert]

When you "final" a property, normally the FNMA 442 is used. Richard says he is not using this one. The FNMA 442 is a federal form created as a "recertification of value" for the appraisal done under a "hypothetical condition".

If you are completing a 442, you had better have reviewed the original file............or you are recertifying a scope you are not aware.

 

[Elliott]

Camara, or whoever they are, called twice more.

I know an appraiser who got sued over
a forged Form 442 (the lender did the
forgery)...so I still don't think its a good idea
to sign off on somebody else's work.

elliott

 

[Jo Ann Meyer Stratton]

The 442 form was created in 1989, before USPAP came into effect. Software vendors offer two versions of the 442 (good thing!). One version has the recertification of value statement at the bottom, which has not been in compliance even before 1994. The other version is blank at the bottom (thank goodness) and that would be the appropriate version to use for a final for a lender. When they are asking for a final, all they are asking is if the home was completed per plans and specs, examples would be did they put a tile roof on it like the plans and specs called for or did they install a composition roof? Or did they install ceramic tile in most of the house per plans and specs or did they install sheet vinyl? Did they build the floor plan they said they would and did they build the GLA they said they would? Those are the kind of questions the 442 is to be used to answer. If the client wants any information about values--it is a whole different ball game (or new assignment as per 2003 USPAP Advisory Opinion 3). So if you are using the Form 442 when completing a final, and most lenders request that form---do not say a word about value on that form! Always use the form without any writing on the bottom. And I agree with Richard's comments.

 

[Mike Garrett RAA]

And one blind man put his hand on the elephants truck and said...."an elephant is like a snake" GEEEEEEZZZZZZZZ

Unless I read something wrong the lender ask for a final inspection not a recertification of value or a review of someone's appraisal. We get these all the time from the VA. The appraiser is off in Africa feeling up elephants and someone has to say the work has been completed. I ask for a copy of the URAR to see what is required.

No one is going to get my work file....unless the courts order it!

 

[Mike Simpson]

Joe Birrell-

"Removed from the appraiser approved list?" When I hear this the first thing that comes to my mind is: Appraiser wouldn't 'cooperate' in some way and was black listed. This has certainly happened to me as well as other posters on this site (read some of Pamela Crowley's previous posts).

I once had a client that asked me to 'certify' the foundations of all the homes I'd appraised 3 months prior to the Feb.01 earthquake. "What do you mean certify the foundations," I asked. "All we need is for you to give us a certification that says the foundations are undamaged from the recent earthquake, we'd be willing to pay $75 for this service--that's a lot of money." When I asked if they realized how long it would take to reinspect all these properties the client on the other end of the phone sounded puzzled, "you mean you've got to go back inside the properties...can't you just inspect them from the outside?"

After some lengthy discussion of why I wasn't qualified to perform such inspections, and how my insurance company wouldn't cover me for the liability, the client became irratated. I'd tried to remain calm and offered rational explanations as to why I couldn't fulfill their request, but they were having none of it. Realizing they just wanted me to rubber stamp a document that put me and my business at great risk, I began to get highly irratated myself. I told them at one point, "why don't you just do the inspections yourself...you're as qualified as I am."

I believe the lender found an appraiser to satisfy their request, and I believe I know who performed these so called inspections, and I suspect they completed this service without ever having left their office or having inspected the properties (although I can prove none of it). Point is the other appraiser was probably told the previous appraiser (me) couldn't complete the assignment because I was sick, or on vacation, or more likely--I'd been dropped from the 'approved appraiser's list.' Believe it or not that outfit continued to try and order appraisals. I dropped them feeling their conduct was too great a liability to my company.

-Mike

 

[Karl]

We get asked to do a lot of these because the 200 mile away appraiser Has realized he isn't makin any money We ask for original appraisal & a general letter of reason why need us to finish The form just ask if home is complete & ready for occupancy if county signed off on it we can for a hefty price.

 

[Carnivore]

Well here is just one more reason why you should follow established procedures and USPAP:

http://appraisersforum.com/forums/viewtopic.php?t=5641

Imagine them calling you to do the final on these subjects!

I rest my case!

 

[Randy Beigh]

Have done several of these through the years, so am only writing based on my experience.

I have only been asked by regular customers to do them, so fraud, deception, or non-payment have never been an issue.

I have done them for 3 primary reasons: dead appraiser, appraisers who have since left the field, or vacationing appraisers.

I have never asked for, nor do I think it is any of my business, for the original file. I do ask for and receive a copy of the appraisal. This is for practical reasons, since it is impossible to do a satisfactory completion if I don't know what was required in the first place. Most are for new construction, per plans and specs, but that is not the only reason.

As others have stated, I am not reviewing the appraisal for value and have never been asked to do so. That would be a different ball game.

This is not likely to be a major method of income. It is done more as a courtesy to the customer and is quite rare. I do charge full fee, but how often is such a situation to arise, so as someone thought about this being another source of income, it's not a major source.

I also think it wise for appraisers to think before acting. Why is the lender ordering a satisfactory completion from a different appraiser? If it is a legitimate reason, is it practical that the lender should have to order another appraisal, because the first appraiser died or went on vacation? Because, if you refuse to help the lender, that is what you are saying.