Recertify Vs. Update

[Mike Garrett RAA]

Who is on first? Confused?

An Update is a new appraisal assignment involving a property that was previously appraised. an Update is subject to the same USPAP requirements as any other appraisal assignment.

A recertification of value is performed to confirm whether or not the conditions of a prior assignment have been met. One example of recertification is a final inspection.

See AO-3 and you will hit a home run!

 

[Fred]

Probably the largest cause of confusion for some is the slang terms "recert" and "update" - terms that don't appear in USPAP. The best first step is to ignore the slang, then find out if the client needs an appraisal or needs something else.

 

[Scott Kibler]

Man we kill too many brain cells on this topic.

When the friendly LO calls and says they need a recert or update on some file you did months ago that was not conditioned on anything; tell them "sure" and "thanks for the order" then prepare a new appraisal. Let them figure out their vocabulary on their own time.

 

[Richard Carlsen]

Had a call this morning from a different lender than client I did an appraisal for on a house last September. Wanted to know about (of all things) a Recert of that old report. I asked him to wait a moment while I checked the report. After checking the report, I then told him that 3 of the comps were still valid (under 1 year) and that I could do what we (meaning my company) calls a New Client Update. It would be considered a new assignment with new date. Fee $250. The order just came through on the fax.

Now I know very well that there is no such thing as a New Client Update. But there is also no such thing as the Recert that he is talking about. He could care less. He wants an appraisal. I want the order. I gave the new assignment a new name that he can understand what he will be getting. I got the order; he'll get his report.

Called business.