Revision request vs update vs new appraisal

[Badlands]

I completed an appraisal on a proposed new construction project a month ago, the appraisal was accepted after several revision requests to include additional information from the lender( or borrower). ( Non of which affected value.) I just received another “ revision” request to review new documents and new (changed) interior and exterior finishes and new construction costs. The request specifies wanting to know of these changes affect value.
I believe this is more than a revision on the original report, is it a new assignment ? Is it an update, did the assignment conditions change? I don’t believe they are asking for a new effective date.

 

[Terrel L. Shields]

Yes, and tell them they need to pony up some cash for your time. Sounds like someone is jockeying to build as much as the lender is willing to lend and they are doing scenario analysis. Tell them the project is finished and any additional 'revisions' will be billed at $x per hour.

 

[JTip]

new assignment, new inspection, new effective date, new signature date, new file, new plans with the new changes.

 

[Terrel L. Shields]

And PS - every new report needs to detail the fact you have previously provided a service, even if it is only 2 days ago. 4 revisions is 4 reports.

 

[andrew81]

My vote, new assignment.

It can basically be a clone of the prior report except what JTip said and your fee is a business decision.

edit//
and prior service disclosure as Terrel mentioned too

 

[Badlands]

Yes, and tell them they need to pony up some cash for your time. Sounds like someone is jockeying to build as much as the lender is willing to lend and they are doing scenario analysis. Tell them the project is finished and any additional 'revisions' will be billed at $x per hour.

Thank you

 

[J Grant]

I completed an appraisal on a proposed new construction project a month ago, the appraisal was accepted after several revision requests to include additional information from the lender( or borrower). ( Non of which affected value.) I just received another “ revision” request to review new documents and new (changed) interior and exterior finishes and new construction costs. The request specifies wanting to know of these changes affect value.
I believe this is more than a revision on the original report, is it a new assignment ? Is it an update, did the assignment conditions change? I don’t believe they are asking for a new effective date.

There is no way for you to know if the changes affect value unless you do an appraisal, so yes, this is a new appraisal and new assignment/eff date ( and the effective date is the date you undertake the assignment or re-inspect - you can do it it as a desktop appraisal since the changes are on plans and specs )

charge enough for your time regardless - these folks are taking advantage at this point.

 

[Tom D]

since we do not know the exact changes, how can you say new appraisal. these changes might just be cosmetic in nature, and not have any affect on value. and you can't tell just by looking at it that it's minor cosmetic changes. i did tons of new construction, and items changed as the job progresses. that doesn't mean a change in value. so you are going to charge for a whole new appraisal for a color change, maybe different floor coverings. it's your business decision and you future client, or not. unless it's a major change in GLA, or price jump, then it's just different decorating schemes. i would have had to do new appraisals 5 times during their construction. if it doesn't affect the value, then just add it to the appraisal, it's a material fact, not a value issue. what you charge depends on how much you like this client, or not.

 

[J Grant]

since we do not know the exact changes, how can you say new appraisal. these changes might just be cosmetic in nature, and not have any affect on value. and you can't tell just by looking at it that it's minor cosmetic changes. i did tons of new construction, and items changed as the job progresses. that doesn't mean a change in value. so you are going to charge for a whole new appraisal for a color change, maybe different floor coverings. it's your business decision and you future client, or not. unless it's a major change in GLA, or price jump, then it's just different decorating schemes. i would have had to do new appraisals 5 times during their construction. if it doesn't affect the value, then just add it to the appraisal, it's a material fact, not a value issue. what you charge depends on how much you like this client, or not.

Well "looking at it" to see if the changes are cosmetic or more, or affect value IS a new assignment/ new appraisal - the changes and information were not available in the prior appraisal.
Appraisers are too cowed and frightened to ask for a fee or a new assignment- that is what these cheap clients are hoping for.
We all are familiar with a change order or two, but the assignment was complete and finished. Now a month later they have new information and want to re open the whole thing wrt the client spefciall asked if the value will change.

 

[sputnam]

The key is... Does it change the Scope of Work and/or the Intended Use of the appraisal? Whether it does or doesn't, unless you are fixing errors that you made, you deserve to be compensated for your time.