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New Assignment? I Think So

  • Thread starter Deleted member 128537
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Deleted member 128537

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I did a construction loan on a 3800sf house about a month ago. Yesterday the lender says the plans have changed and it is now a 3987sf house. Wants the appraisal changed. I told them that's a new assignment because it's a different house with a different effective date. Not going to happen for nothing, because I have to redraw the sketch, redo the cost, and frankly I have to rerun the 1004MC, and relook at the comparables. But it's still a new assignment.

Am I wrong?

Any idea what you might charge for this. Originally got 650 since it's complex.
 

hastalavista

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May 16, 2005
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Certified General Appraiser
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California
I think it can be done as a new assignment or as a modification to the original (I don't see a USPAP issue with that), so I think that choice is up to you (whatever is easiest and/or the one you are most comfortable with is the one to pick).
A new assignment is going to require a new inspection with all the additional work you describe.
A modification might require new comparables, but it might not (the comps you have for the 3,800sf proposed construction may be the best ones for the 3,987sf proposed construction). The modification would not require a change to the effective date (it will require a new report date).

So, my fee would be based on which route I took: If I have to go reinspect and/or shoot new comps, I'm going to charge more than if I just have to re-work the new size within the existing data set.
 

glenn walker

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Oct 11, 2006
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Certified Residential Appraiser
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It's no big deal so make it easy for you and the client- get the new plans and revise the appraisal and use a new signature date or if you are paranoid drive out to the site change your inspection date and when your done you will have both a new effective date and signature date- This is not like doing a new appraisal you have 90% of the work already done and a 190 Sq.Ft. difference is not much on a house that large - Hard to believe your 1004MC would change or that you would require having to get new comps so why not just explain to the client that you will be putting in another few hours and charge a reasonable fee- I usually charge $200.00-$250.00 for something like this unless it's a regular client and then it's a business decision BUT I hope you aren't thinking this is another $650.00 :)
 

AMF13

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Jan 24, 2002
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Certified Residential Appraiser
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California
Half price? I would do the market analysis over with the new SF. Look for comps with the new SF parameter, and hope there are none better than I already have. Def not buy one get one free. :leeann:
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
187 sf? are they adding a closet?

2 hours work, revisit the market, no new site inspection, multiple fields/pages to change.....50% for a GOOD client....use the same report with a heavy narrative page showing the changes to comply with USPAP (probably just do a new report, may be easier, clone/change). Comps should be the same (same neighborhood), probably won't like the contributory value of 187sf.....
 

AMF13

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Jan 24, 2002
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Certified Residential Appraiser
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California
probably won't like the contributory value of 187sf.....

GLA was adjusted at $X for differences over 200 SF. :leeann2:
 

Mike Kennedy

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Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
I did a construction loan on a 3800sf house about a month ago. Yesterday the lender says the plans have changed and it is now a 3987sf house. Wants the appraisal changed. I told them that's a new assignment because it's a different house with a different effective date. Not going to happen for nothing, because I have to redraw the sketch, redo the cost, and frankly I have to rerun the 1004MC, and relook at the comparables. But it's still a new assignment.

Am I wrong?

Any idea what you might charge for this. Originally got 650 since it's complex.

Calculate how long the first assignment took; then the hourly rate. Revision Quote (prior to re working it) Bill for second one based on actual "time served" for the new report w/new effective date - on an hourly basis (revised sketch, new comparable search - may or may not identify additional comparables, new subject photos etc. - THEN Get written approval to complete the New Appraisal and Report (new effective date, new report date)- THEN do the new appraisal report. Their alternatve - pay a different Appraiser "full boat $$".
 
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Deleted member 128537

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Actually this turned into a false alarm. When I went back and looked at my oringal report I had the plan with the greater GLA! So the LO must have been confused. Which means "case closed."
 
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