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Updates- go or dont go to property?

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kitadiane

Thread Starter
Freshman Member
Joined
Sep 13, 2007
Professional Status
Certified Residential Appraiser
State
Illinois
:huh:For the last 4 years I have been going back to EVERY property that needs an update even if it has only been 1-2 months since the last appraisal. The question is- Is this required under the 'NEW USPAP UPDATE ASSIGNMENT' rules? or is there a way to use a NEW effective date (afterall this is really what the client wants is a new updated date on the report and usually refresher comps). I have heard from some other appraisers that they are NOT going back to the property- there are ways around it- such as modification of the scope, etc... I dont know if there is a way to note in the scope that the NEW effective date assumes that the property is in the same condition or something like that as the last effective date. I just dont know if I am making my job harder than it already is or if the other appraisers are in violation of the Update rules. Please help!!!
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
:huh:For the last 4 years I have been going back to EVERY property that needs an update even if it has only been 1-2 months since the last appraisal. The question is- Is this required under the 'NEW USPAP UPDATE ASSIGNMENT' rules? or is there a way to use a NEW effective date (afterall this is really what the client wants is a new updated date on the report and usually refresher comps). I have heard from some other appraisers that they are NOT going back to the property- there are ways around it- such as modification of the scope, etc... I dont know if there is a way to note in the scope that the NEW effective date assumes that the property is in the same condition or something like that as the last effective date. I just dont know if I am making my job harder than it already is or if the other appraisers are in violation of the Update rules. Please help!!!

#1...Ask the client.

#2...Whatever the response, get it in writing.
 

Joker

Elite Member
Joined
May 28, 2002
Professional Status
Certified General Appraiser
State
Ohio
Ditto Mr. Lansford.

It depends upon the purpose and intended use(r).
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
If you are using the 1004-D, the form requires a minimum SOW which calls for a re-inspection of the subject exterior.
 

kitadiane

Thread Starter
Freshman Member
Joined
Sep 13, 2007
Professional Status
Certified Residential Appraiser
State
Illinois
Purpose is for lending same as original report done earlier and intended user is the same the same lender. They are always for refinances and usually the lender just wants a fresher effective date. I dont know how more specific I can be.
 

kitadiane

Thread Starter
Freshman Member
Joined
Sep 13, 2007
Professional Status
Certified Residential Appraiser
State
Illinois
What does SOW mean? Yes it was originally a 1004. They are NOT asking for a 1004D they want a 1004 again.
 

kitadiane

Thread Starter
Freshman Member
Joined
Sep 13, 2007
Professional Status
Certified Residential Appraiser
State
Illinois
Also I believe from what I know that the 1004D is not to be used to update value, according to USPAP it is for recertification of value meaning specifically that value has not changed based on items of correction, repair, etc that the lender is asking for - basically the 1004D is to be used to check that new construction or repairs called for have been completed. There is no room to add updated comps and do adjustments anyways.
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
Scope of Work.

If their updates, which are a totally new assignment and appraisal no matter the form, are being placed on a Fannie Mae 1004, without re-inspecting the property, they are doing something that would cost them their appraisal license in most states. Signing off stating one inspected a property on a certain date, when they did not, is a major no no and is also known as fraud.

The 1004-D can be used for two things, a final inspection or an update. But it is a lousy form for updates and is not USPAP compliant. Webbed Feet will be along shortly to give the full details.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
You're not completing an update, you are providing a new appraisal. New Assignment, new appraisal and hopefully you are charging properly for it.


New File #, new work file, reinspect the property, re-check all pertinent information and provide the best comparables available. Just like if you were completing an appraisal in the first place.

There is no 'new' rule in USPAP regarding updates, they are new assignments.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
About the only clients that want updates are mortgage lenders and they will want the update (new assignment) reported on a 1004D/442. The scope of work for Fannie/Freddie updates requires a re-inspection from at least the street.
 
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