Recert of Value after 3 months

[DKAYTES]

Workfile is nice, but make sure you cover the reporting requirements of Std 2 :icon_idea:

Thanks for the heads up Rex.

 

[Webbed Feet]

One more time.

Thank you for switching to updated appraisal speak. Very appreciated! However, I have to disagree with you on some statements.

BUT - the 1004D does not allow for a actual opinion of value, only a yes / no, based on recent comps and an overall market analysis of the neighborhood with market statistics if the value has or has not declined.

In a complete 1004 report you're providing an actual value - but not on the 1004D form. Yet a full analysis needs to be done. which I have done, but not providing a new opinion of value. Different SOW.

I am forced to disagree. When the 1004D asks “Has the Market Value of the subject property declined since the effective date of the original appraisal?” Yes or No ….. the question is using the prior single point value conclusion of the incorporated appraisal as a benchmark for a new value conclusion. That is why this “Update” is a new real estate appraisal.

The “Yes” answer is saying that based on the benchmark the opinion of value is a “Less Than” value opinion. That is every bit as much of a value opinion as a point value. "Less Than" is just as "actual" as any other value statement.

The “No” answer is saying that based against the benchmark that the opinion of value is a “Equal to or Greater Than” value opinion. That is every bit as much of a value opinion as a point value. Again, just as "actual" as any other value statement.

Unfortunately, what you've done here is you've coined some interesting definition of value, “actual,” that doesn't exist. While at the same time incorrectly stated that the 1004D does not call for an opinion of value. “Appraisal” - An opinion of value. The 1004D is an “Update” that is also labeled to be a "Summary Appraisal." USPAP says an “Update” is simply a new appraisal. The 1004D has a new effective date. Want to explain how it is the 1004D SOW is not that of a new real estate appraisal?

 

[DKAYTES]

Thank you for switching to updated appraisal speak. Very appreciated! However, I have to disagree with you on some statements.



I am forced to disagree. When the 1004D asks “Has the Market Value of the subject property declined since the effective date of the original appraisal?” Yes or No ….. the question is using the prior single point value conclusion of the incorporated appraisal as a benchmark for a new value conclusion. That is why this “Update” is a new real estate appraisal.

The “Yes” answer is saying that based on the benchmark the opinion of value is a “Less Than” value opinion. That is every bit as much of a value opinion as a point value.

The “No” answer is saying that based against the benchmark that the opinion of value is a “Equal to or Greater Than” value opinion. That is every bit as much of a value opinion as a point value.

Unfortunately, what you've done here is you've coined some interesting definition of value, “actual,” that doesn't exist. While at the same time incorrectly stated that the 1004D does not call for an opinion of value. “Appraisal” - An opinion of value. Agreed. The 1004D is an “Update.” USPAP says an “Update” is simply a new appraisal. The 1004D has a new effective date. Again, agreed.

Webbed - You make vaild arguements at my words. Yes, while I am using the prior appraisal as a benchmark and now formulating a new opinion of value as part of my work product to answer that qustion yes or no. As I stated earlier, I've only had to do an update one other time in he past so this is where I am. I'm not a USPAP guru (so I'm kind of looking for a little guidence here - not to be tortured), I just reviewed standards 2 (thanks Rex), AO3 and FAQ # 173 ( Fannie Form 1004D). I've done my analysis.
FAQ# 173 states to summize the analysis which I have done on the top of the 1004D From and have decided to grid 3 new comps and include it in the report, include certifications etc in a text addendum. Based on what I have read, my question is would you suggest that I communicate my new opinoin of value in a narrative or just state it on the bottom of the grid page in the Analysis/comments section. ( try not to beat me up too bad here, this is why I turn to everyone here for some advice ).

 

[Webbed Feet]

Webbed - You make vaild arguements at my words. Yes, while I am using the prior appraisal as a benchmark and now formulating a new opinion of value as part of my work product to answer that qustion yes or no. As I stated earlier, I've only had to do an update one other time in he past so this is where I am. I'm not a USPAP guru (so I'm kind of looking for a little guidence here - not to be tortured), I just reviewed standards 2 (thanks Rex), AO3 and FAQ # 173 ( Fannie Form 1004D). I've done my analysis.
FAQ# 173 states to summize the analysis which I have done on the top of the 1004D From and have decided to grid 3 new comps and include it in the report, include certifications etc in a text addendum. Based on what I have read, my question is would you suggest that I communicate my new opinoin of value in a narrative or just state it on the bottom of the grid page in the Analysis/comments section. ( try not to beat me up too bad here, this is why I turn to everyone here for some advice ).

It may seem like I am torturing you with a switch, but if you opt to really proceed reporting with the 1004D on this I am trying to sharpen your pencil very sharp so you at least meet minimum USPAP requirements. So you understand you have to opine H&BU again and you understand to compare the USPAP minimum certifications with the 1004D certifications that don't cut it .... right? For example, if on this latter one you fail to do that, then you will fail to provide a new set of USPAP minimum certifications in your report. A requirement for a new appraisal, signed minimum certifications.

Try this. Go through the old report, decide what is valid for "incorporation" and what is not valid, create an addendum going over both the valid stuff and why, and the invalid stuff and why... Update (renew or do over again) all the invalid stuff that the new SOW and USPAP minimums would require. State the valid stuff to still be correct for the new effective date.

Got a headache yet? It could be easier to just use generic appraisal reporting forms and put "See pages x through xx" on the 1004D. Whatever dipstick at Fannie thought the 1004D would be quick and easy was completely USPAP ignorant. If an appraiser spent a week working up a template to cover everything it might be doable. But like you, doing one once every few years is a total time burner identifying all the USPAP pit falls and needs.

P.S. Important point. USPAP meeting of minimum reporting requirements under Standard Two does not allow you to just think clients/intended users should "assume" what incorporated items are still valid or not as far as meeting minimum requirements for a new appraisal report. Again, example, you can't just think incorporation allows you to think the clients and intended users will comprehend that the H&BU has stayed the same. Minimum requirements demand you clarify the H&BU as if the new effective date. Or explain why you are not opining an actual opinion of the current H&BU for having some reason to use a HC about it for a credible intended use that calls for that (not part of this assignment anyway.)

 

[DKAYTES]

It may seem like I am torturing you with a switch, but if you opt to really proceed reporting with the 1004D on this I am trying to sharpen your pencil very sharp so you at least meet minimum USPAP requirements. Appreciated, I don't take it personally, Don't call me skippy. :laugh:So you understand you have to opine H&BU again and you understand to compare the USPAP minimum certifications with the 1004D certifications that don't cut it .... right? yes, done. A requirement for a new appraisal, signed minimum certifications. Agreed

Try this. Go through the old report, decide what is valid for "incorporation" and what is not valid, create an addendum going over both the valid stuff and why, and the invalid stuff and why... Update (renew or do over again) all the invalid stuff that the new SOW and USPAP minimums would require. State the valid stuff to still be correct for the new effective date.

Got a headache yet? YES. It could be easier to just use generic appraisal reporting forms and put "See pages x through xx" on the 1004D. Kind of the plan. [/quote]

I've gone through the original report and the market on the MLS last night ( Hence some of your earlier remarks) to more importanty double check my work from previous- it's spot on. I've incorporated very little from the old report, only a pending sale which is still pending - supports my opinion. Everything else is a new report, new 1004MC, 3 new sales etc all because of a new effective date. I actually don't see the need to incorporate too much of the old. I also am going to include extraordinary assumptions since today's site visit ( inspection) was exterior only. Something to the effect that the interior and mechanicals are in the same condition as previous.