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Exposure Draft of AO-10

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Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
Ok USPAP guru's, does it sound like, to CYA, when you do a reassignment, you should now :

A: As before, get a release in writing;
B: As before, state in the apprasial the original client and intended use;
C: Wonder if what you just read in AO-10 makes any sense at all:

-OR-

A: Review file to see if any confidential information was used in the report;
B: Go back to the property for a quick reinspect;
C: Research new sales, if any;
D: Prepare a new report with new effective date;
E: Wonder if what you just read in AO-10 makes any sense at all:

-OR-

A: Phone rings, lender asks for reassign;
B: Start making static sounds and tell them you cant hear..loosing them..
C: Wonder why the ASB has to make everything so freaking complicated.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Bill:

Thank you for so clearly elucidating EXACTLY what I was fussing about...
THAT was precisely what I got out of it also! I was hoping someone else saw what I saw!

SO

Now that (part at least) of the problem is clearly identified,

Let's work toward a solution!
I see the specific problems as being the following:

We need a flowchart of yes/no options to assist with the inevitable phone call which CLEARLY gives us if/then options to solve the cleints problem.

AND

a need for clarifying EXACTLY what is/should be considered confidential!

Input wanted!!!! C'mon! you all grouse about results you don't like, How about helping build what you WOULD like to see.

IF nothing else tell me if YOU think a flow chart would help you in this matter?!?!?
I will attempt to build one and submit for consideration...
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
Bill,
"D" and since it has a new date, it is also a new appraisal. Since this is a new assignment with a new work product, why would I have to get the prior client to release something they don't own?

Lee Ann,
What, in a residential appraisal report, would be confidential information?
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
since it has a new date, it is also a new appraisal. Since this is a new assignment with a new work product, why would I have to get the prior client to release something they don't own?


ZAKLEE - I have appraised any number of homes several times with several owners. One split level has sold every 2-3 years since 1992 and is a current comp. Appraised it over and over. If I offered a discount for redo's I'd be broke. I have 7 appraisals pending. 1 is new const. 2 are new and the other four I had done from 1999 to 94-5 at least once.

This update/recert debate will go on an' on until ASB clarifies AO-10 once and fer all by a decision tree or other way of explaining it to a client.

I just had a realtor call wanting me to "update" an estate appraisal to a mortgage appraisal.....I said, "ain't no way" . It would be a new report. Old one is narrative. I mean the report was in maybe March of last year anyway. Click. They will use someone else even though I would be no more expensive than the next person and they know within reason what value I will set on it.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
OK...Here's a new one for me that just took place two days ago.....

I just had a lender ask me to recert a 1004 new construction appraisal that I did for another lender on January 3rd of this year (the original client has released the report in writing) and in the recertification process they want me to convert the 1004 to a 2055 because that is what they use.

First of all, we are talking "Reissue" and not "Recertification" and as I read the rules, “Reissue” is changing an existing appraisal to a new client. I told them that I could reissue the 1004 but that redoing it on a 2055 would be considered a new analysis since it is a limited report. Besides, I don't think a 2055 for a new construction provides a level of reliability necessary for the clients needs whereas a 1004 does. They are going back to the UW and see if they can use the 1004. If the UW balks, we'll have to figure something out; like maybe a new 2055 report with a Cost Approach addendum attached.
 

rtubbs

Junior Member
Joined
Jan 15, 2002
Richard, I frequently appraise new construction on a 2055 and include the M&S Square Foot Cost Form. In so doing, it is a complete appraisal and not a limited appraisal. My understanding is that the form does not dictate whether tis a complete or a limited.

I think it is assanine to convert from a 1004 to a 2055 on new construction. By asking for a recert from a new lender, I assume that they are wanting a new effective date which we know is a recert but an update. Life sure is complicated sometimes.
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
My fear is that appraisers will continue to overcomplicate a simple request for an appraisal by trying to define an appraisal as a "recert" or "reissue" or "retype" or "update" and citing "rules" for "reissue" that do not exist until the lenders get so frustrated they figure out they don't need an appraiser at all. The second lender can just call the first lender, get a copy of your original report and use that.

.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
My fear is that appraisers will continue to overcomplicate a simple request for an appraisal by trying to define an appraisal as a "recert" or "reissue" or "retype" or "update" and citing "rules" for "reissue" that do not exist until the lenders get so frustrated they figure out they don't need an appraiser at all. The second lender can just call the first lender, get a copy of your original report and use that..

Steven,

We all know that no lender (at least I've never known one) will use an Appraisal Report with a different lenders name on it. They all want their own. ?

Regarding the complications of USPAP and the interpretations of it... I do often wonder if that's not exactly why it was written this way - if they can keep Appraisers confused and constantly under the gun - the lenders then get upset and angry - the AVMs get to take over and the lenders get what they really want - no 'police' until after the collapse where the government (taxpayers) bails them out and Accountants and Appraisers are blamed.

Yep, paranoid conspiracy theory. I admit that. I just really can't figure out WHY it is written the way it is. If we can't figure it out, how can we teach the lenders - our clients - what it means? They are getting different stories from different Appraisers, and some of those conflicting stories might be correct.

:roll: :twisted: :?: :cry:
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
Ron

Your reason for adding the Cost Approach to a 2055 to make it a complete appraisal was exactly my reasoning for what I will propose if they will not accept the 1004. It is my judgment that in the market place I serve, new construction cost is generally equal to value (otherwise the builder would not be able to get anybody to sign up) and leaving it out makes the report less reliable for the client.
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I have a really simple solution to the problem. I tell the lender "As of January 1 of this year updates (recertification's, whatever they want to call them) are now by law a new assignment. Therefore I have to do a new report."

What follows is your option. Mine is: "I need to do a quick inspection of the house to make sure nothing has changed. "

Depending on the client, the mood I am in, if my wife and I had an argument this morning, if the computer is acting up, if solicitors are driving me crazy and a few other external inputs I follow up with "The fee is ____."

I may or may or may not discount it. If it is over a year ago NO WAY. If it was nice people in a bind and the previous Mortgage Co. jerked them around I may do it really cheap. If they are refinancing again after 6 months then it is full fee. As I say it depends on the mood and the circumstances. I will discount to help someone that has been mistreated. Otherwise it is going close to full fee or full fee. So far no arguments.

Also, I will add that if you do a new report it's a new job and you simply don't have to worry about it.
 
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