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Question For You.

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Ron in AR

Sophomore Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arkansas
I did an appraisal for a loan for purchase of a home from A to B 4 months ago. House sold - deal closed.

B now wants to refinance using that same appraisal. Lender wants report to now show B as the owner/borrower with the same date of appraisal and is hoping that I don't have to reinspect for the sake of time.

This is a good client and I don't mind accomodating them when I can but I'm thinking that the report that I delivered reflects the current owner as of the date of the appraisal and that I could not go back and tweak the report to appear to be a refi as of that date.

And, if I change the date, I have to reinspect. More time, more money.

I am thinking straight, aren't I?
 

hal380

Senior Member
Joined
Apr 26, 2003
Professional Status
Certified General Appraiser
State
Connecticut
This is a new appraisal!!!!!!!!!!

May be a good client, but so what. Dont mean to be harsh, but so what, a good client should not ask you to put your license/livelyhood on the line.

Time has passed, the market has changed a bit, other sales have closed, and who knows what the new owner has done to the inside of the house.

New appraisal.

Just my $0.02
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Ron,

Minimum I would say is a new inspection. You may give them a price break for having the sketch allready done. But I am with Hal on this it is a new appraisal. You have now to research the market for new sales.

Ryan
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
New Appraisal - absolutely no doubt about it!!!!!

Needs a new effective date just to be able to put the new owner on it as the owner.

Discount what you want to, but there is no question about it needing to be a new appraisal.
 

Phil Rice

Member
Joined
Apr 22, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I disagree with most of the comments so far.
My 2 cents:

Your post says that the client wants you to use the same effective date. If the client wants you to appraise as of the same date as before (a retrospective appraisal), it is not necessary to reinspect. However, the owner of the property on that date is not the same as the current owner.

IMHO, you can use the same report, with no need to reinspect, if you keep the effective date the same, and make the following changes:

New client name (if requested), new signature date, disclose the sales history of the subject up to the date of the new signature.

It would be appropriate to look at market data, and feel free to use hindsight -- i.e., if a sale closed 1 week after the date of your appraisal, even if you did not consider the sale at that time, you should consider it now. This data may or may not be in your report, but you should consider all of the available data. As a practical matter, the value of the subject is not going to change, but my point is that with a new signature date, it could change, and you should not assume anything, take a look at the market data.

If you change the date of the appraisal, you should re-inspect the property and that date becomes the new appraisal date.

You cannot change the client name (or borrower name) and keep the same signature date. If you change anything on the report, it should have a new (current) signature date, and it should be treated as a new appraisal.

You have 2 appriasals. You only need to re-inspect if the effective date is going to change.
 

Phil Rice

Member
Joined
Apr 22, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
It depends???

"do a new one" meaning start over and go re-inspect the property?

If the subject property is 45 miles away, there is a pretty good incentive to not do another inspection, to verify that in the past 3 months, there is different furniture but everything else is pretty much the same.

IMHO, it is very much a judgment call. I have no problem if the appraiser wants to do another inspection, my point is that it is not required. If the client is trying to save time and money, it might be possible to accomodate that request.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
read Advisory Opinion 3. It can be done either way as long as you explain the Scope of Work. Personally, I think it should be a new appraisal.
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
How are you going to list the borrower as the owner if the effective date does not change??????
 

John SRA

Junior Member
Joined
Jan 19, 2002
Ron,

I suggest you read the ASB's current exposure draft. You might find it interesting. It contains a draft advisory opinion on readressing an appraisal report for another client.

In short, it says you can't do it. You can, however, do another appraisal.


Have good day

JC
 
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