According to all sources, including the current Standards comments being circulated for final adoption, it is a new report. Charge what you feel proper to complete the report. At the least, it would involve a reinspection and new comparables, so charge accordingly.
Go Look at AO 3 and then also
Check out Fannie Mae guidelines Section 201, Age of Appraisal, which requires an observation of the property on the new effective date and knowledge of current market conditions (looking for and at new comparables).
Make sure you really udnerstand what the client is asking you to do...
'recertify' is a pretty narrow term, mostly they want something else and it is up to you to decide what it is that they want that you can DO... and remain USPAP compliant...
Since Lee Ann quoted me--I guess I better throw in my two cents (which is really worth only half a penny or less). Any way, Section 201-Age of Appraisal, Fannie Mae guidelines effective 6/30/2002:
"If the appraiser indicates that he or she believes that the property has declined in value, the lender must obtain a new appraisal for the property.
If the appraiser indicates that he or she believes that the property has not declined in value, the lender should request the appraiser to provide an update to the appraisal, based on his or her exterior inspection of the property and knowledge of current market conditions. The inspection and the appraisal update must occur within the four months that precede the date of the note and mortgage."
So drive by the property, take photos from as many angles as possible, then decide which of the two situations apply. Then depending on the circumstances follow one of the three reporting options described in 2003 USPAP Advisory Opinion 3.
By the way, Fannie Mae has had very similar guidelines since at least 1990--and USPAP added the definitions in 1995 regarding updates and recertifications. So we are really dealing with information that has been out there for many years, but not readily or easily understood by many clients and appraisers. So you might say, it is awareness that has changed, not necessarily guidelines or standards.
Those of you that receive orders from LSI, read their newsletter that was issued last week--very informative.
It is NOT required, in every or all cases, again see the three options available to you...
IF the market has declined you can still do a new drive by assignment, and by referencing a prior inspection (gee thats why they have that neat little box on the 2055 form) as a source for the new determination of value (make sure to use an Extraordinary Assumption about same level of condition to CYA) and move on!
Anyway thta is MY take.
What you charge for your services (which is in all likelihood REALLY what the client is concerned about :roll: ) is up to you.
I discount somewhat for properties previously inspected, brings in a fair amount of repeat business...
They are simply asking you to recertify that the subject is still worth what your original report refected. Look in the neighbrohood, are the comps you used 6 months ago still the best comps available? If you find better comps use them. Then you sign the report which recertifies that as of todays date, the subject is worth $zzz,zzz.xx. The date you originally inspected the property stays on the form.
I do agree with a previouse response, make sure your client is asking for the right report. They don't always know what they want.
Values have been stable to up not declining. I think lender just wants a more current appraisal for the file and borrower just wants a lower interest rate without paying for a new full appraisal in his closing costs.