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Re-addressing an appraisal

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Beth G

Thread Starter
Freshman Member
Joined
Jul 30, 2007
Professional Status
Certified General Appraiser
State
Washington
I just completed an appraisal for a private client. As soon as I delivered it to him, within 2 days he sold the building. The borrower's bank just called and wants me to re-address the report for them. I went to the Advisory Opinion (#26) in USPAP but it says I cannot re-address it. I have to establish a new assignment with them. Has anyone done this and if so, what is the "charge $$$" scenario for the bank? The owner (seller) has already told the bank he has an appraisal but they want a new one. Thank you.
 

chad hampton

Senior Member
Joined
Nov 10, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
Sounds like your situation is a little different that just a new client. If he sold the home, it is now an appraisal for a purchase and not a "private use" appraisal. IMO, this requires the same amount of work as starting from scratch, contract review, etc. - maybe a discount for not having to measure again, but that's about it.
 

Chris Colston

Elite Member
Joined
Jul 24, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I just completed an appraisal for a private client. As soon as I delivered it to him, within 2 days he sold the building. The borrower's bank just called and wants me to re-address the report for them. I went to the Advisory Opinion (#26) in USPAP but it says I cannot re-address it. I have to establish a new assignment with them. Has anyone done this and if so, what is the "charge $$$" scenario for the bank? The owner (seller) has already told the bank he has an appraisal but they want a new one. Thank you.

Please tell me your supervisor had you use a "generic" form and NOT one of the new (2005) Fannie Mae forms. Please also tell me it is you supervisor that is talking with the lender client and you are actually just passing the information and question to the forum.

With THAT being the case, you say "sold the building"....is this a single family residence or multi-family dwelling? So is the borrower the buyer or is the borrower, you refer to, your original client?

The question is not clear. In any case, the lender will most likely need the report on the new (2005) Fannie Mae forms. The SOW is totally different as is, most likely, the intended use and intended user. This would indicate the need for a totally new assignment and with that a new fee....but of course you supervisor already knows that, right?

The fee to charge is a BUSINESS decision that you and your supervisor will need to agree on with the client.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
New Client, New Appraisal Fee, New Fee

If you were a lawyer and wrote a legal document for your client one day and charged them a fee, would the fee be substantially less if they have to prepare another document next week? I think not...

It's a business decision.

I agree with Chris, it's up to your supervisor/mentor to negotiate the fee and what type of appraisal is being required.
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
Does anyone bother to search the threads!

Ms. Beth,

Read the following thread..

http://appraisersforum.com/showthread.php?t=133870

Your case is even worse! Look, your original appraisal was for a private party! A bank cannot accept it for a mortgage loan!

Somebody at that bank is completely off their fricking rocker asking you to readdress that prior appraisal report. Ask for somebody at the bank that has a clue! Whoever requested that is utterly clueless!

Webbed.

P.S. Did you bother to warn your original client, in writing in advance, that the appraisal you were doing for this client could not be used for any future FRT loan for a sale transaction or mortgage application? If not, you screwed up. By the way, good job however in looking it up in USPAP manual and reading the AOs... It is unbelievable how many people come to the forum and seem to have never done so.
 
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Doug Meyer

Senior Member
Joined
Sep 13, 2003
Professional Status
Certified Residential Appraiser
State
Indiana
Beth, just watch out for old webby feet there. He sleeps with the USPAP manual tucked next to him!! :rof:
 

farmguy

Member
Joined
Jun 27, 2007
Professional Status
Banking/Mortgage Industry
State
Texas
Webbed,

Somebody at that bank is completely off their fricking rocker asking you to readdress that prior appraisal report. Ask for somebody at the bank that has a clue! Whoever requested that is utterly clueless!

the bank is not clueless or off their rocker. They know what they need in the file. They are testing the appraiser. If she will readdress saves time and money. End of day they have a report with them as client and it was free and fast.
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
I just completed an appraisal for a private client. As soon as I delivered it to him, within 2 days he sold the building. The borrower's bank just called and wants me to re-address the report for them. I went to the Advisory Opinion (#26) in USPAP but it says I cannot re-address it. I have to establish a new assignment with them. Has anyone done this and if so, what is the "charge $$$" scenario for the bank? The owner (seller) has already told the bank he has an appraisal but they want a new one. Thank you.

1st, what does your Supervisor Appraiser have to say regarding this matter?

2nd, the request from the bank is nothing more--and nothing less--than an entirely new request for an appraisal. Treat it as such.

3rd, I suggest you lose the language "re-addressing an appraisal".
It's bad enough when wannabe clients use it, but appraisers should never use those words.
 
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Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
Webbed,

Somebody at that bank is completely off their fricking rocker asking you to readdress that prior appraisal report. Ask for somebody at the bank that has a clue! Whoever requested that is utterly clueless!

the bank is not clueless or off their rocker. They know what they need in the file. They are testing the appraiser. If she will readdress saves time and money. End of day they have a report with them as client and it was free and fast.

Brilliant!

Tell me, what is the fine if a bank in a FRT gets caught using a borrower initiated real estate appraisal as part of the loan documents used to fund a loan? Not that I see the big deal in letting borrowers pull all the same doo doo on appraisers that mortgage brokers pull every day of the week mind you.

Webbed.
 
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AL LLANOS

Junior Member
Joined
Apr 28, 2006
Professional Status
Licensed Appraiser
State
California
Ok, I have always agreed with webbed, it'll keep you out trouble. I'm working on being as cranky as him. Especially now that it is real slow; why is any appraiser willing to give away services for free? It does not make any sense. We all need to be in agreement here. I do not work for free!!!!!!!

Al
 
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