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Recertification form??

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Jeff Horton

Thread Starter
Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I have to do a Recertification of Value on a refi a did a few months ago. The borrower has been rate surfing I think. It's no problem to do it, but I was thinking there was a form to do this on but I can not find one. I guess I was thinking of the a Satisfactory Completion form. Anyone aware of a standard form or is this normally just a letter? I was certain I had used a form in the past but age does that to you. :)
 

AC King

Sophomore Member
Joined
Jan 20, 2002
In ACI it's called a Recertification of Value form. Guess it depends on what appraisal software you use. You still have to comply with USPAP, no matter what it's called.
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
Jeff --

The way I see it, you have a potential of 3 choices:

a) Write a letter, which is what we used to do.

b) Use a rather plain narrative form.

c) or use the Apollo Y2K form with the grid. [I mean 'Athena']

OTHERWISE, e-mail me your fax number and I'll send you a sample of b and c.
 

vargasteve

Junior Member
Joined
Jan 21, 2002
Professional Status
Certified Residential Appraiser
State
California
I posted a similar question recently regarding ACI's form - I suggest that you use the 'Search' feature on this site & use the key word 'Recertification' and review the information. I also use the ACI form ROV - I believe is the form you are refering to and modify it's verbage calling it an 'update' of the original appraisal. The ACI form calls for use of a supplimental FNMA/FHLMC appraisal form - of which there is none that I could find either in ACI. Therefore, I use the drive by form 2055 as the 'attached form' and this serves the function of a 'new appraisal' that the lender can use as an 'update / recertification' or a separate estimate of value itself. This allows me to offer a alternative price point for my customers along with always supporting my value estimate with data & analysis. Unfortuantly, it is difficult to do a value update and make similar profit (to a full report) if the market is changing, but it is worthwhile since it makes the client happy - well, kinda of.... :lol:
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Please make sure you read the FNMA 02-02 announcement that clearly states that requires the appraiser to perform a minimum exterior inspection of the property if the original appraisal report is over four months old and review current market data. If the appraiser determines that the property has decreased in value an new appraisal must be done. The "update" can be put in any form. Most use a letter. However, many do not re-inspect the property, which is wrong and has been wrong for many years now. What you charge is your own business. I prefer to do an appraisal update on a 2055 exterior form with new comps and I charge $200. If there has been no new market activity, I will give a letter and sometimes charge less. Keep in mind they are asking you to change the "effective date" of the appraisal and you are assuming liability for any changes in the property since the original appraisal date and you are bound by the same guidelines as the original report.

I would bet that seven out of ten appraisers do not follow the proper procedure, because every time I inform the lender that I must re-inspect the property and must charge them, they try to tell me that I am the only appraiser in the United States that has to do that. They expect a letter saying the value has not changed as of today's date, but they don't really want to be charged for it.
 

Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
For those of you using ACI V8 there is an "Appraisal Update" form. With your original report open go to File/Add Remove Forms. Then scroll down to "Appraisal Update".

It works for me.

:D :D :D
 

Dan Leggett

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Mississippi
Jeff,

Your original message was concerning 'Recertification of Value' but the message topic soon turned 'Appraisal Update'. These are two different animals.

'Recertification of Value' means just that, you are recertifing the value estimate as of the date of the original appraisal. I browse the original report looking for possible errors, draft a simple letter, and usually charge $50.

'Appraisal Update' means you're bring the value up to today's date which usually requires reinspecting the subject, reworking the cost approach with today's costs, and applying today's sales in the Market Approach. In essence you are doing a new appraisal except you are not having to remeasure and hopefully nothing has changed on Page 1 of the URAR. I typically charge $300 +/- for these.

What exactly was requested by the client?
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
For the differences between a "recertification of value" and "an update to an appraisal", read page 90 of the 2001 USPAP. If the client wants current market data (has the value changed since the original opinion of value), they call and usually ask for a "recert". But since they want new market data considered and assured the value has not decreased, they actually are requesting an update to an appraisal. A lot of lenders (most lender employees) do not realize the difference and their supplemental standards have not been changed to the new terms. Be very carefull with any forms that the software companies provide. If they say anything about recertification but provide a way to present new market data--that form is not in compliance with USPAP. If they do not use the terms recertification of value but do use the terms update to an appraisal--forge onward. An update to an appraisal can be completed in several ways. If the appraiser in agreement with the client thinks a complete new URAR or 2055 interior should be done with all the exhibits and supporting data, go for it. If you think a 2055 exterior only with new comparables will be sufficient, that can be done also. Or you can write an "Update to an Appraisal" letter, which is an extension of the original report. With the Update to an Appraisal, you would observe both the exterior and interior of the subject on a new effective date for an opinion of value, provide a sales comparison grid with current data (closed sales, pending sales, active lisings, etc, what ever is available), photos of subject, new comparables and a new location map. Since it is an extension of the original report, the other exhibits that were in the original report do not need to be reproduced.

I have offered in the past and do again, to send a pdf file to anyone that requests for a sample of some update letters I have developed. And I am always looking for constructive feedback because that helps me improve my work products. And maybe there will be some ideas that would be helpful to someone else. My email address is [email protected].
 
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