What do you do say in the 1004D when the house has grown?

[Bobby Bucks]

Anyone who does proposed construction assignments has dealt with this on some level. They order the final and the finished product is different than plans. If it’s minor, no problem, but what do you do when the heated area is 15% more? 15% less? What if they add a finished room over the garage? Turn a covered porch area into a finished sunroom? I have one where they changed the garage from a front entry garage to side entry and added 154 more square feet which is basically just more storage area in what is still a 2 car garage. I’m going to simply make a comment about the garage being larger than plans and specs, but is still a 2 car garage and stick a fork in it, it’s done IMO. I’ll also include a revised sketch. I asked a peer and he said, oh, no you need to stop the entire lending freight train, wave a lantern, call underwriting 911, alert the lender, new report, etc. What say the experts?

 

[Tim Hicks (Texas)]

Just notate the changes and provide your sketch. Now, if they built a totally different plan it may require a new appraisal.

 

[Tom D]

The plans as per the time of your appraisal were completed. More is better, who cares. Less is the value problem. More info about more stuff? Did they do everything as to what was mentioned in the appraisal. That's it, end of story. Typically, i never got upgrades during construction unless there were price changes. Stop with the worrying, take a happy completed 1004d to da bank.

 

[Terrel L. Shields]

I'd just call the client ask what they want to do

 

[J Grant]

Anyone who does proposed construction assignments has dealt with this on some level. They order the final and the finished product is different than plans. If it’s minor, no problem, but what do you do when the heated area is 15% more? 15% less? What if they add a finished room over the garage? Turn a covered porch area into a finished sunroom? I have one where they changed the garage from a front entry garage to side entry and added 154 more square feet which is basically just more storage area in what is still a 2 car garage. I’m going to simply make a comment about the garage being larger than plans and specs, but is still a 2 car garage and stick a fork in it, it’s done IMO. I’ll also include a revised sketch. I asked a peer and he said, oh, no you need to stop the entire lending freight train, wave a lantern, call underwriting 911, alert the lender, new report, etc. What say the experts?

This is what I would do. When the finished product meets the original specs and exceeds them, there is no problem, imo. We are not changing the value, we are just inspecting for completion of X. opinion.

 

[Tom D]

I only do completion observations, not inspections. I'm not l&i. Leaves you open to being an expert.

 

[Carnivore]

You know what happens a lot now? If this came through an AMC. The AMC gets another appraiser to do a final.

Problem solved, LOL

 

[Tom4value]

J and others said it best. Just report what you find. The scope of work specifies that you determine that the work has been completed according to plans and specs noted in your report. Now to stay compliant by not providing a misleading report, you should note that the property was completed to your appraisal AND state that the finished product exceeded original plans. You may say that the property “may exceed the value as appraised” but do not say that it “does” unless you have the data to back it up.

 

[J Grant]

J and others said it best. Just report what you find. The scope of work specifies that you determine that the work has been completed according to plans and specs noted in your report. Now to stay compliant by not providing a misleading report, you should note that the property was completed to your appraisal AND state that the finished product exceeded original plans. You may say that the property “may exceed the value as appraised” but do not say that it “does” unless you have the data to back it up.

Good commentary, however, since the 1004D completion is simply about the items completed, I would not mention value ( which is a different assignment)

Stick with: "note that the property was completed to your appraisal AND state that the finished product exceeded original plans. (with sf added or whaever )" THE END

As the saying goes, less is more.

 

[shrubberyvaluation]

Anyone who does proposed construction assignments has dealt with this on some level. They order the final and the finished product is different than plans. If it’s minor, no problem, but what do you do when the heated area is 15% more? 15% less? What if they add a finished room over the garage? Turn a covered porch area into a finished sunroom? I have one where they changed the garage from a front entry garage to side entry and added 154 more square feet which is basically just more storage area in what is still a 2 car garage. I’m going to simply make a comment about the garage being larger than plans and specs, but is still a 2 car garage and stick a fork in it, it’s done IMO. I’ll also include a revised sketch. I asked a peer and he said, oh, no you need to stop the entire lending freight train, wave a lantern, call underwriting 911, alert the lender, new report, etc. What say the experts?

Not to plans and specs. Explain what is different.