Appraisal Update and Completion Reports

Appraisal Update and Completion Reports

After the appraisal comes the follow-up. Is the work finished? Is the value still good? Two reports answer those questions: the Completion Report, and the Restricted Appraisal Update Report.

One form becomes two reports

The legacy 1004D, or Form 442, handled both jobs on one form. Now they're separate reports, each with its own data and rules. Both open with Subject Property and Original Appraisal, which carries the original value, effective date, and appraiser. And both close with Assignment Information and Certifications.

A report that builds itself

The Completion Report is dynamic. Four sections always display, and the rest appear only when needed. The repair sections show up when there are repairs to report. Completion Status shows up when the original value was Subject to Completion Per Plans. Its job is narrow: confirm whether the original conditions were met. It gives no opinion of value.

Itemized List of Repairs

The Itemized List of Repairs carries forward each repair the original appraisal required. Feature, location, description, and the soundness question come from the original report. You add whether the repair was completed, the inspection date, and a comment, which is required when it wasn't done. And every repair item needs a photo, finished or not.

New Observed Items for Repair

Spot something new at the inspection? It goes in New Observed Items for Repair. Same first four columns, plus a Recommended Action: Completion, Inspection, Repair, or None. Each new item needs a photo too.

Completion Status

For new or unfinished construction, Completion Status asks up to two questions. First: is construction complete? If not, describe what's left in the commentary. If it is, add photos, then answer: was it built consistent with the original plans and specifications? Answer No, and a table opens: each inconsistent feature, its location, a comment, and how it compares. Superior, Similar, or Inferior. Similar means different, but of similar quality.

Say what happened, not what it's worth

Completion Report Commentary holds what the data can't, like unfinished items or how new items were resolved. But steer clear of the impact on value. A Completion Report isn't an appraisal, so don't slip a value opinion into it.

One question that matters

Now the Restricted Appraisal Update Report: a new assignment that incorporates the original appraisal by reference. All five of its sections always display, and only one is new: Appraisal Update. It holds an effective date for the update, and one Yes or No question: has the market value decreased since the effective date of the original appraisal? Support your answer in Appraisal Update Commentary, for example with a house price index. Additional signers of the original appraisal are named there too.

Four things to remember

Quick recap. One. One legacy form became two reports. Two. Completion Reports track repairs and construction, with photos. Three. Report facts, never value, in a Completion Report. Four. The update asks one question: has value decreased? Next up: the course wrap-up.