New Assignment: AR value

[ZZGAMAZZ]

I provided As Is value reported on a 1004 for client as a recent re-fi.

Now the same client orders an AS REPAIRED value for the same property based upon estimated construction costs to enhance the Main Unit and change garage into ADU [which is ok to do per local standards).

Should I include data for the current AR as a revision of the original As Is report, and re-submit the two values together for the current assignment, because the AR value pertains to the existing/previous As Is value?

Unsure if I'm expressing the scenario correctly.

 

[George Hatch]

Change the recipe (SOW) and you end up with a different cake.

 

[Mike Ault]

I provided As Is value reported on a 1004 for client as a recent re-fi.

Now the same client orders an AS REPAIRED value for the same property based upon estimated construction costs to enhance the Main Unit and change garage into ADU [which is ok to do per local standards).

Should I include data for the current AR as a revision of the original As Is report, and re-submit the two values together for the current assignment, because the AR value pertains to the existing/previous As Is value?

Unsure if I'm expressing the scenario correctly.

That's a new assignment. Since it is the same client, then you may incorporate as many elements of the previous assignment as you deem necessary for credible results.

 

[J Grant]

I provided As Is value reported on a 1004 for client as a recent re-fi.

Now the same client orders an AS REPAIRED value for the same property based upon estimated construction costs to enhance the Main Unit and change garage into ADU [which is ok to do per local standards).

Should I include data for the current AR as a revision of the original As Is report, and re-submit the two values together for the current assignment, because the AR value pertains to the existing/previous As Is value?

Unsure if I'm expressing the scenario correctly.

This is not just making repairs - if the client wants the new value to be with the garage changed into an ADU, that is a significant change in property characteristics and, IMO needs a new assignment.

How long has it been since you submitted the first as is value?

 

[Tom D]

Many rehab loans require an as is and finished value. New appraisal, maybe dicount fee cause you can clone parts of it.

 

[Tom4value]

This is not just making repairs - if the client wants the new value to be with the garage changed into an ADU, that is a significant change in property characteristics and, IMO needs a new assignment.

How long has it been since you submitted the first as is value?

Exactly. It is a new assignment. It is also a different animal, requiring new comps for the new value.

 

[ZZGAMAZZ]

This is not just making repairs - if the client wants the new value to be with the garage changed into an ADU, that is a significant change in property characteristics and, IMO needs a new assignment.

How long has it been since you submitted the first as is value?

Yes it's definitely a new assignments, but I wasn't sure whether to incorporate the As Repaired, into the prior report, or somehow to make reference to the prior appraisal into the new report.

 

[ZZGAMAZZ]

Yes it's definitely a new assignments, but I wasn't sure whether to incorporate the As Repaired, into the prior report, or somehow to make reference to the prior appraisal into the new report.

Also, I'm not sure if the "As Repaired" verbiage accurely reflects the concept of an Opinion of Value affected by asignificant change/upgrade to the physical improvements.

 

[sputnam]

Okay. So, what's the problem? Is it the sloppy, non appraiser language that the Client is using? That's an easy fix. Talk to them and find out exactly what they want. I would consider it a new assignment with a new fee.

Remember, you can do multiple appraisals on the same property... for the same Client or for different Clients. You simply have to make sure that you comply with USPAP.

 

[ZZGAMAZZ]

Please respond re OP. Does the AR assignment that obviously is a subsequent, new assignment compared to the original AS IS assignment for the same client require the original report to be included in the AR report, or can the appraiser simply refer to the Opinion of Value expsressed in the first, prior report? Also asking whether the AR report requires a prospective valuation because the changes haven't yet been made? Also curious about the lending protocol: does the borrower typically obtain two loans, one or the As Is assignment and another for the AR assignment?