New Construction

[spittman]

Did an appraisal on property that was about 85% finished at time of inspection and turned in report Subject to Completion. A couple of weeks later I did the final when it was 100% complete.

Lender is now asking if "existing" should be changed on original appraisal instead of "under construction" since it was based on hypothetical that it was already completed. Now I'm questioning myself.

Should it?

 

[Kitarkus]

Did an appraisal on property that was about 85% finished at time of inspection and turned in report Subject to Completion. A couple of weeks later I did the final when it was 100% complete.

Lender is now asking if "existing" should be changed on original appraisal instead of "under construction" since it was based on hypothetical that it was already completed. Now I'm questioning myself.

Should it?

The original report was subject-to and should not be changed. Your 1004D indicates a now as-is and completed property. You do not go back and change the original report.

P.S. Remember that the effective date of the original report...and the contents of the original report are now historical...and the comments within the Report are now past tense. Thus the need for a completion certificate. I can't think of a reason to ever change the contents of the original report.....as you cannot change the original report effective date (the only way to do this would be a new assignment). The 1004D should suffice any competent underwriter's concerns about whether the property is NOW completed. Any language within the Original Report...open questions...incomplete items...should be addressed in the 1004D.

 

[spittman]

That's what I thought. Must be an inexperienced loan processor.