Foreclosure Appraisal Question

[TJSum]

Take this a step further: Assume you do the report "subject to" and inspection with CB4 marked with it's EA. However, inspection is made by qualified inspector and it is found that the plumbing system had frozen, damaging the old galvanized pipes as well as the 40 year old hot water baseboard heat unit boiler and the 30 year old electric water heater, requiring an nearly complete redoing of the plumbing system, new HWBB boiler and new water heater. Certainly there will be an impact as with all of this new stuff, the effective age should decline, increasing value. So all of the repairs are made with new copper plumbing up to code, a new hi-efficiency boiler with forced draft and a new gas water heater.

42 days after you deliver the report and 47 days after the effective date of the report, the lender now comes back to you and asks you to incorporate the repairs into the report.

Questions:
1. How do you handle the reporting of the new upgrades?
2. Do you reinspect the house?
3. What do you charge (if anything)?

This is how I would handle it.
A- I never sign off on certification or inspection letters from other professionals, that is the UW's job.
B- If the client wants me to conduct a final, just to make sure the plumbing system is working correctly and the utilities are now on, I will do just that. I will state in the final that is for visual inspection of the plumbing system only and does not "sign off" on the other certifications or inspections by the other professionals as that is the responsability of the UW.
C- If the plumbing system works properly, I will provide the final to clear the value on the original report done 47 days ago. The other repairs may have increased the value, but that is not at issue, a final only calls for needed repairs of the original report.
D- If the client wishes for a new value, based on all the new systems and updates, then I would conduct a new appraisal with a new effective date.
E- What one charges is between the appraiser and the client, no right or wrongs here...