So I spent the last hour or so working around the USPAP issues that the form lacks, and came up with this addendum. What do you think?
The following items append the Scope of Work as printed on the 1004d Form:
Items incorporated by reference:
The appraiser was asked to perform an Appraisal Update for a property located at 123 Main St, Anytown, WI, which the appraiser previously completed a report on, with the effective date of 11/1/08. (this is not clear as to what that effective date applies to, the prior assignment or the new assignment) This appraisal was completed with Hometown Bank as the intended user. Some information from the original report (file # 8Main123) is being incorporated by reference, as stated below: (I would add a statement that no other not listed information is being incorporated. State both what is, and what is not, being incorporated. This may require a statement such as "due to rapid market changes the not incorporated information is no longer considered valid for this analyses.")
Intended Use/User: See previous page
Legal Description: Main St Subdivision Lot 1
Property Identification: See above for legal description and address. A map and description of the neighborhood are included in the referenced report.
Property Interest Appraised: Fee Simple
Definition of Market Value: See referenced report
Effective Dates: Original Appraisal- 11/1/08, Appraisal Update- 2/17/09 (Let's start training them.. I.E. - Past Assignment(Appraisal) 11/1/08, Current Assignment (Appraisal) 2/17/09)
Summary of Information Analyzed: See referenced report for a summary of appraisal methods employed in determining an opinion of value. (so it is safe for me to assume you completed a new cost approach too right? If you did one prior?) The subject property has not been offered for sale since the effective date of the 11/1/08 report. With regards to this analyses a search of closed sales was performed for the subject market area. (why only closed sales? how did you correct or provide a new 1004mc?... just wait, they are going to demand a new one for an "Update." .. don't ya see it coming?) There were no comparable sales that indicate the subject has declined in value since the original appraisal. (Sorry!!!! If every new active listing are all asking $30,000 to $60,000 less than your prior opinion of value for the subject you just screwed the pooch. A lack of closed sales doesn't mean the market is not crashing. It may only mean nobody is buying!) See attached comparable sales grid for a summary of 3 recent sales.
Current Use: The subject property is currently used as a single family residence, which is also the highest and best use. (How do you know that? You didn't go back inside now did you? Maybe they built three more kitchens, divided rooms, and now it's a illegal boarding house! You just used an unexplained EA if it has been several months, did you not?) Subjects zoning does not allow for multifamily or commercial use.
Extraordinary Assumptions: The appraiser makes the assumption that the interior condition has not changed since the effective date of the original report try "prior opinion of value." ("prior appraisal" Reports don't have effective dates, appraisals have effective dates. An "Appraisal" is an opinion of value.). An exterior "drive-by" inspection (suggestion... you "viewed" the property versus "inspected" it) was performed on 2/17/09. (See the problems when appraisers leave HC's and EA's for the last in their addendums instead of placing them as the very first things a reader reads? Move this EA statement up BEFORE everything else! )
Certifications:
I certify that, to the best of my knowledge and belief:
- The statements of fact contained in this report are true and correct.
- The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
- I have no (or the specified) present or prospective interest in the property that is the subject of this report and no (or the specified) personal interest with respect to the parties involved.
- I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
- My engagement in this assignment was not contingent upon developing or reporting predetermined results.
- My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
- My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.
- I have made a personal inspection of the property that is the subject of this report, as reported above.
- No one provided significant real property appraisal assistance to the person signing this certification. (Good man! You understand that past signed certifications cannot be "incorporated," at least in my opinion they cannot be. New assignment, new compliance with USPAP and signed certifications. P.S. for others reading this, not T.S., do you understand the certifications on the 1004d do not meet USPAP minimums? .. Does your client and intended users understand some of the certifications in the old report no longer apply to the new assignment?)
... I was trying to not spend all day making edits and points about it because I had to be "nice" while doing it. "Nice," in the opinions of others on the forum, takes too much time.