"Recertification Of Value"

[Neil Anderson]

A mortgage broker is requesting a "recertification of value" for an appraisal I did back in February because the comps are now dated. Never done one and don't like the form - USPAP compliant? What say yee?

 

[Tawfik Ahdab]

They're using obsolete nomenclature.

They need an appraisal update with a new effective date. If so, and depending on who the report is destined to, you might use form 1004D, or re-do the appraisal on whatever form you used last time.

Either way, don't hesitate to charge appropriately for this new assignment.

 

[Tim Hicks (Texas)]

Read Advisory Opinion 3.


The form you should use if you choose is the 1004D.

 

[Neil Anderson]

They are asking for new comps, so a 1004D won't work. My opinion is that a new date and new comps = a new appraisal.

 

[Bill Baughn]

Certified Residential Appraiser?

A mortgage broker is requesting a "recertification of value" for an appraisal I did back in February because the comps are now dated. Never done one and don't like the form - USPAP compliant? What say yee?

And you're a certified residential appraiser? They have been discussing this for years in the USPAP classes I have been taking...sorry buddy!!!

 

[Kevin Mc]

Your Opinion.

They are asking for new comps, so a 1004D won't work. My opinion is that a new date and new comps = a new appraisal.

IS CORRECT.

 

[Tawfik Ahdab]

You said they needed new comps, not that you needed to SHOW them the new comps.

And yes, a new date = new assignment.

 

[Ross (CO)]

Is this MB (today) the same client you served in February ? Was the intended use of your report in February consummated ? If so then the February report......is history !

Is the new MB requesting this "ReCert" a different person with NO direct involvement with the purpose and use of that February report ? Did he/she acquire the Feb. report from the property owner of the subject, or from the earlier client you served.....and now the MB phones you saying that your comps....are dated ? How could they possibly be "dated" ?

It sounds like this is a new client, wanting a new (today's) opinion of value on the same (and yes, familiar to you) subject property. Fine, offer to provide a new opinion of value, using more-recent market data, quote a fee, consider re-visiting the property if but for a brief 5-minute walk-around and walk-through.....and make the fee quote and payment arrangements that satisfy you.

Do the assignment.....write the new report......and don't let a MB have any opportunity to push you around. They might suggest.....but they don't tell. In no way am I going to express concern about your fee of the timing by which you receive it. That's for you to care about. This new client could be referred to as being "Client B".......and client B's have a notorious reputation. Be tactful, and good luck. The outcome is all your's to create.

 

[VolcanoLvr]

Quote: "They are asking for new comps"

Well, golly gee. They are attempting to write a new loan with an old report that is (probably) more than 6 months old. U/W says no dice.

So MB says to you...ah shucks, just add a couple of new comps and take out the old ones, and everything will be peachy. Oh, and by the way, I'll pay you just a few bucks for your time.

As the others have said.......you have a new assignment with a current effective date. You need to reinspect and do a new report. (You may want to discount the new report fee since you can clone the old report basic subject data and a new measure & sketch won't be needed..if you did the last report.)

The 1004D possibly could be used to report that the property value has not DECLINED from the original effective date, but most U/W's don't like to base lending decisions on reports older than about 6 months.

 

[Neil Anderson]

Thanks everybody - of course I knew the answer to this question! The mortgage broker told me that "all appraisers do it" so I started this thread for him to see what ethical appraisers do in black and white. Unfortunately, you have to be registered to read the thread so the link I sent him didn't work. But I told him to pound sand in the end anyway.