Reporting Prior Involvement

[ZZGAMAZZ]

Assignment for Client B is based upon conventional mortgage lending for an "AS REPAIRED" value.
Prior involvement was 1004 with an "AS IS" Opinion of Value of same property for Lender A [with the commonality of the two assignments based upon the same independent broker, who advised me to base the "AS REPAIRED" opinion for Client B, e.g., renovated and enlarged GLA, and garage to ADU conversion, upon results of prior report for Client A.

I'm using the USPAP addendum to describe prior involvement, but somewhere I feel it's necessary to report the source of the AS IS valuation that is the baseline value for the AS REPAIRED value. Also including the contractor's estimate in the new report.

Questions/Thanks...

Does the appraiser reference USPAP Prospective valuation protocol in an AS REPAIRED opinion because the repairs/renovation haven't occured yet?
If so, should the anticipated date of completion be reported?
How can I use results of the prior/original Opinion of Value be repored in the AS REPAIRED report without compromising confidentiality of the original report/client?
If the SCA grid for the current assignment will be populated only with AS REPAIRED comps, should I use the standard 1004 grid, or the "Supplemental" form only?

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[Tom4value]

Assignment for Client B is based upon conventional mortgage lending for an "AS REPAIRED" value.
Prior involvement was 1004 with an "AS IS" Opinion of Value of same property for Lender A [with the commonality of the two assignments based upon the same independent broker, who advised me to base the "AS REPAIRED" opinion for Client B, e.g., renovated and enlarged GLA, and garage to ADU conversion, upon results of prior report for Client A.

I'm using the USPAP addendum to describe prior involvement, but somewhere I feel it's necessary to report the source of the AS IS valuation that is the baseline value for the AS REPAIRED value. Also including the contractor's estimate in the new report.

Questions/Thanks...

Does the appraiser reference USPAP Prospective valuation protocol in an AS REPAIRED opinion because the repairs/renovation haven't occured yet?
If so, should the anticipated date of completion be reported?
How can I use results of the prior/original Opinion of Value be repored in the AS REPAIRED report without compromising confidentiality of the original report/client?
If the SCA grid for the current assignment will be populated only with AS REPAIRED comps, should I use the standard 1004 grid, or the "Supplemental" form only?

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Ok, for client B, are you doing a new inspection? I hope so because now you are gaining info to form your opinions straight from your inspection and not using confidential information from client A’s appraisal.

- Regarding the 3 year history, you state that you did an appraisal on the property on such and such a date. That’s it! No need to state if it was an “as repaired” or “as is” value. Infact, doing so is a violation of the confidentiality. For client B you determine the scope of work based on what the client wants. The appraisal for client A has nothing to do with this one.

 

[ZZGAMAZZ]

Ok, for client B, are you doing a new inspection? I hope so because now you are gaining info to form your opinions straight from your inspection and not using confidential information from client A’s appraisal.

- Regarding the 3 year history, you state that you did an appraisal on the property on such and such a date. That’s it! No need to state if it was an “as repaired” or “as is” value. Infact, doing so is a violation of the confidentiality. For client B you determine the scope of work based on what the client wants. The appraisal for client A has nothing to do with this one.

T4V, Greatly appreciate your advice. Yea I conducted another interior/exterior but didn't even think about generating a new/current AS IS opinion, as the basis of the AR value--which seemed like a critical problem upon reading your response....but the more I think about it, my perspective that the AR would be based upon an AS IS = construction budget, as factored by the current market would result in the AR opinion......however, I just realized that the AR value doesn't need to be based--to any extent--upon an ASIS, because the AR value is what the prospective market says it is, which is even more logical when one realizes that there is no obvious correlation [ever] between original + renovation and the market respone to the prospective improements. If my logic is now more logical, it appears that in restrospect I spent a lot of time worrying about a part of the equation that wasn't pertinent Do you agree??

 

[sputnam]

Assignment for Client B is based upon conventional mortgage lending for an "AS REPAIRED" value.
Prior involvement was 1004 with an "AS IS" Opinion of Value of same property for Lender A [with the commonality of the two assignments based upon the same independent broker, who advised me to base the "AS REPAIRED" opinion for Client B, e.g., renovated and enlarged GLA, and garage to ADU conversion, upon results of prior report for Client A.

I'm using the USPAP addendum to describe prior involvement, but somewhere I feel it's necessary to report the source of the AS IS valuation that is the baseline value for the AS REPAIRED value. Also including the contractor's estimate in the new report.

Questions/Thanks...

Does the appraiser reference USPAP Prospective valuation protocol in an AS REPAIRED opinion because the repairs/renovation haven't occured yet?
If so, should the anticipated date of completion be reported?
How can I use results of the prior/original Opinion of Value be repored in the AS REPAIRED report without compromising confidentiality of the original report/client?
If the SCA grid for the current assignment will be populated only with AS REPAIRED comps, should I use the standard 1004 grid, or the "Supplemental" form only?

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- You provide prospective value and/or current value and/or retrospective value depending on what yourClient requested.
- If you provide a prospective value, the date of completion is the effective date of the appraisal.
- It's a new assignment. Period. Only your assignment results...opinions and conclusions are confidential.
- Use whatever grid makes the most sense.

 

[J Grant]

Wrt prior involvement it is called a prior service, and all the appraiser needs to disclose is:

"The appraiser performed a prior service on the subject property within the past 3 years."

 

[Tom D]

Stop blending the 2 reports in your head. Each one is a separate assignment with the only refence is a prior 3 year service preformed on the 2nd one.
I must be getting to old, could barely figure out what you were saying.

 

[TerryRohrer]

Wrt prior involvement it is called a prior service, and all the appraiser needs to disclose is:

"The appraiser performed a prior service on the subject property within the past 3 years."

You have to specify what type of service (appraisal, review, consulting, handyman, etc).

 

[ZZGAMAZZ]

Stop blending the 2 reports in your head. Each one is a separate assignment with the only refence is a prior 3 year service preformed on the 2nd one.
I must be getting to old, could barely figure out what you were saying.

Thanks, but maybe it's ME who's getting too old. And I'm working on one prospective assignment and another retrospective assigment simultaneosly [different clients/properties].

Speaking of which, can the USPAP_14 form be used for a legal assignment? It's a streamlined efficient form IMO but embedded comments ask for borrower and also lender--which I can clarify in the form but don't know whether this form, like the FNMAE 1004, is designated only for lending assignments?

 

[ZZGAMAZZ]

Thanks, but maybe it's ME who's getting too old. And I'm working on one prospective assignment and another retrospective assigment simultaneosly [different clients/properties].

Speaking of which,

--can the USPAP_14 form be used for a legal assignment? It's a streamlined efficient form IMO but embedded comments ask for borrower and also lender--which I can clarify in the form but don't know whether this form, like the FNMAE 1004, is designated only for lending assignments? --Does the prospective assignment condition require a HC that the improvements will be completed in accord with plans and specs that are included in the report?

 

[ZZGAMAZZ]

EPIPHANY:
I just realized that the prospective AS REPAIRED opinion of value must be based upon current market dynamics there being no way to determine how any market will change from the inspection date of the property to the anticipated completion date of the rroposed renovation. Is that correcdt????