Each of us has his (or her) own business model.

“Subject to completion per plans and specifications (insert identified specific 58 page plan package here, dated, approved by city and initialed in margins by appraiser, with architects name, lic # and job #) using materials as specified or comparable quality, equally acceptable to the market with all work being completed in a workmanlike manner, with issuance of final permits and certificate of occupancy by governing jurisdiction.”

No one other than myself could possibly know what I (appraiser) meant by ‘comparable’ quality; or workmanlike manner. They are subjective.

The fees paid for typical 1004Ds are not remotely adequate to read a good set of plans, complete with detailed finish schedules, engineering requirements and verifications of dimensions to assure that what was built was what was purported in the plans.

Like so many other aspects of our profession, proposed construction requirements have diminished greatly. I referenced real plans above. Many if not most jobs today are working field sketches, or ‘plans’ run off on some builder’s home computer. using off the rack software, and totally lacking in enough detail to determine the actual quality of finished products.

I guess draw inspections could be easier, though I’d personally still want the plans. On ‘near-complete’ projects where 95% was already finished it’s also not automatically critical for plan review. “Subject to installation of appliances and countertops, and electrical swithplate conversion all rooms.”

Years ago I appraised a 4-plex on several acres, The City had just DOWN ZONED the parcel, allowing one DWG unit per 20,000 sf. This parcel didn’t build out for 20 more years. This for a credit union.

Its certainly not enough to compensate for setting up an assignment file; arranging for inspection, driving out there (and back) confirming whether specified work was done or not and then writing up the report. It is not adequate for the follow-up communications involving “almost completed” items that builders, sellers, agents, AMCs and lenders want to argue about.

I prefer to let the original appraiser that called an issue out take care of clearing it. After gas and vehicle wear and tear, and driving time how much are you working for per hour?

I go $150 minimum with special disclaimer and in form notes on my template, the SOW for this is only to verify completion of item or correction of item. And this is not for value reconsideration and I have not included any such data, that is a new assignment request. Pick those up $250 on the rush, otherwise they’re full 1 or 2 week turn items like everything else.

I know an appraiser whom is eager to call subject to for anything, like missing alarm or minor item or what not. That’s one way to go about it. It’s his way of replacing the now absent 2075 requests because those were bread and butter items which helped keep appraisers in business, quickies. I try to chat with agent and have them pop an alarm in or whatever, finals are a hassle. If it’s a big deal or problematic to the funding, subject to here we go. Always hypo as if condition is corrected so it can help you stretch the gap with deficiency and high pricing in the right scenario. And that’s the rub with picking up someone else’s work, did they apply the proper valuation theory for big ticket items to properly reflect as repaired hypo condition? And if you call more items, does that influence the hypothetical nature of the original value opinion? Better hope you only find something minor because otherwise if you call something major which effects value, then you can’t agree with their original opinion.

I am not available to accept the Final 1004d service. In the future, please contact me initially so I will be available when you need a Final.

I have gained full-service business instead of $125: 1004d.

*The Form has a dual purpose & I am not indicating one-way or another “value”. A Final IS a separate service.

Dave, the 1004D is a duel purpose form, meaning one section can be completed without the other. One does not have to confirm the value has not declined (top section), while also saying all repairs have been completed (lower section).

Lenders love to try and order the 1004D (top section) on the cheap, but for me, the top section (if I say yes), is the same price as a full appraisal.

Seek the truth.

“Next time call me first and be willing to pay the full C & R fee, because I’m always available for final inspection completion.” Why do these appraisers overlook and under report on the underlying cause of the request? Was it a discount request? Was this an amc client? How can you not report on that? We know without having to be told.

Perhaps you’re overlooking the chain of liability. For only the final inspection fee, the 1004d signing appraiser is the last in line, the final stop. They take on the liability for the original appraisal, by accepting the final. I mean, if you like the give the other guy a free pass on your insurance, why not.

If anyone is signing that many a day….. Big Brother is watching

I’ve been in that situation before. Clearly state the 1004D you’re signing only certifies that the specific items from the original report are or aren’t complete. And add a statement like “the appraiser recommends a full FHA appraisal inspection as some issues were apparent at the time of the final inspection which may not meet FHA requirements “

The question is, what do you do when you see something else that was not mentioned in the original report that would make the place non compliant?

The divide is really complete. There is practically nothing the bankers/AMC will concede to be even civil or agreeable on in coordination with appraisers, let alone really work together towards any common goal. Their contempt is always on display.

“If you read what you are signing in the 1004D form, you will see that you only need to certify that the requirements or conditions listed in the original report were met. This is all you need to do in order to fulfill what was requested in the form and most likely in the engagement letter (although you will want to double check that).”

…. “However, I also noticed the following potentially problematic issues that will likely cause the property to not be FHA compliant, though these issues were not noted in the original report.”

Dustin, how with other discovered FHA issues, can you state the property meets HUD Hand book 4000.1?

Come on Dustin, 4 to 9 full appraisal a day should be good without the need to fill a gap in your schedule with a random 1004D.

Seek the truth, and go make up a value.

Run away as fast as possible. Do not assume anybody’s liability.

Come on man