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Extraordinary assumption in 1004D?

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OllieGarchy

Thread Starter
Junior Member
Joined
Nov 22, 2003
Professional Status
Certified Residential Appraiser
State
California
Upon inspection, I noticed the inside of the porch had a lot of dry rot. I saw this as the wood siding had been ripped away from the porch. Per client agreement, I did it subject to inspection.

They sent me a 1004D a month or so later, along with a copy of the inspections and repairs that were made. I asked why I would be involved in this since it was subject to "inspection" and not repairs, and since the client already had the reports. They said they still wanted a 1004D to make sure the repairs had been made.

I said I could just put it in a separate addendum that the inspection had been done. They said no, they wanted a 1004D.

Fine.

I went out there. The siding had been replaced so there was no way for me to tell if the work had been done. In addition, the reports made no mention of the porch area being repaired. So I checked the "NO" box.

Two weeks later I get a new report. It shows the work had been done. Fine. Only they still want me to go out there. I told them that a 1004D is a 'VISUAL' inspection, and if it's still covered up, there is no way for me to tell. I told them I could put in the addendum that I've reviewed the reports and that it shows that the area was inspected and repaired. But I'd still have to check the "NO" box.

They said just do an extraordinary assumption that it's been repaired. I said not when it calls for a certification that a visual inspection shows that it's been repaired.

Has anyone ever heard of an extraordinary assumption on a 1004D for a specific problem?
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
The UW does not want to take the responsibility that they should, and is trying to deflect it on you, stand fast. Do the 1004-D, take plenty of pictures and state on the report you can not confirm the repairs have been properly made because the new siding covers up the repair work. Suggest the licensed contractor submit in writing (with their letterhead and license #) that the repairs were done according to local building codes and have a (fill in the blank) year guarantee that the work is done properly. The paperwork should be submitted to the UW for their final approval as it goes beyond the appraiser's expertise to sign off on items we are not qualified or licensed for.

It is common for UW to try to get the appraiser to take more responsibility than we should, you just have to stand fast and set them straight when they do.
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
Tom,

I agree with TJ that the EA for an inspection on the original report is meant to be cleared by the lender, not the appraiser.

The 1004d is not designed to address EAs, only completion of HCs for construction or repair.

This part of their request doesn't make sense at all:

They said just do an extraordinary assumption that it's been repaired.

If you were to do such a thing (which you absolutely should not) that would just create another EA that would have to be cleared.

Because they are trying to involve you in clearing EAs, they have started an endless loop of activity that has no end.

The reason for the EA on the original report was to report that the possibility of value affecting deficiencies was beyond your qualifications to determine. So how could you determine if the repair was sufficient? That has to be done by the experts in the field to the satisfaction of the lender. It does not involve the appraiser.

At most you could photograph a list of physical property elements for the lender. You can not take on the liability of commenting whether the repairs were sufficient. It sounds like you have already done all you can do.

I would be willing to accept an assignment to photograph the property as a follow up assignment but I would not report it on the 1004d. I would do it in a letter.
 

CURT VAN HOOSER

Senior Member
Joined
Nov 3, 2003
Professional Status
Licensed Appraiser
State
California
You mentioned in your post that the siding had been removed and this is how you noticed the dry rot. Did you also happen the mention in the report that the siding was removed? If so, they want to repairs signed off? What's wrong with referencing the contractors report in the comments section and attach a copy along with the photos that show the siding in place?
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
You mentioned in your post that the siding had been removed and this is how you noticed the dry rot. Did you also happen the mention in the report that the siding was removed? If so, they want to repairs signed off? What's wrong with referencing the contractors report in the comments section and attach a copy along with the photos that show the siding in place?

Because if you do that as the appraiser, you are back in the loop with liability issues. You don't know the contractor from Adam, he could have been the owner or agents brother-in law. Let the UW sign off on it as they should for things we can not observe or go beyond our expertise.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
I've run into similar situations (a few times only).

I tell the client I cannot do the 1004D because there's nothing to "1004D".

What I have been successful in doing is selling the lender a site-visit report. I'll give them a write-up as to what I observed with photos; it is a separate assignment and not an appraisal. I've done this maybe five-times and they've agreed that satisfies their needs and have paid me my fee.
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
T.J., Ms Langley, and Mr. DeSaix are right on. The UWer or client is trying to get Mr. Batha to do an "Update" with yet another EA? Too many clients think "ordering" a 1004d means they automatically get both a completion certificate and an "Update," for $50.

A lot of this is due to Fannies instructions regarding obtaining a completion certificate that are the same ones from years ago.

Webbed.
 
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OllieGarchy

Thread Starter
Junior Member
Joined
Nov 22, 2003
Professional Status
Certified Residential Appraiser
State
California
I just want to say that I very much appreciate the input. Thanks.
 

CURT VAN HOOSER

Senior Member
Joined
Nov 3, 2003
Professional Status
Licensed Appraiser
State
California
Serious questions... 1) What takes precedence...repairs required or inspection required? 2) Can both CB's be checked or is there a higher order that must be followed? 3)What is the follow up if we call for an inspection and that inspection reveals that repairs are required? (Perhaps this has been answered in your comments that the UW signs off). Thanks in advance!
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
"Areas needing repairs were reported complete. The reported completion could not be verified by visual inspection on the part of the appraiser. The appraiser is not qualified to make any determinations on hidden items. Therefore, this report is conditioned on delivery of a signed certification and clearance letter from the responsible contractor to the appraiser for inclusion in the report that the repairs noted in the original report have been fully and satisfactorily completed."
 
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