1004D Appraisal Update vs. Completion Certification (Final Inspection): What is the difference?

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Form 1004D serves two distinct purposes and the scope of work for each is different. 

Please see below for specific ordering instructions with Valuation Management Group (VMG).

The top section of the 1004D is used to update a previous appraisal and to certify that the market value has not declined. The appraiser is required to perform an exterior inspection of the subject property, and conduct research and analyze market data to determine whether the property has declined in value since the effective date of the original appraisal. For FHA transactions, the appraiser must also complete the Market Conditions (MC) Addendum.

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The bottom section of the 1004D is used to certify that any required repairs or improvements stated in the original report have been completed. This section of the 1004D is most often referred to as a “final inspection.”

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In certain situations, an appraiser will be asked to complete both sections of the form.  An example would be new construction where the appraisal is more than 4 months old and the loan is being sold in the secondary market (Fannie Mae, Freddie Mac, FHA). The appraiser would complete the top section (update) and answer the question, “has the market value of the subject property declined since the effective date of the prior appraisal?” The appraiser would complete the second section (final inspection) indicating whether the improvements were completed in accordance with the requirements and conditions stated in the original report.

Ordering with Valuation Management Group – 1004D Update, Certification of Completion, or Both

If you need an Update certifying that the value has not declined, select 1004D Update Appraisal as the report type.

If you need a Certification of Completion, select 1004D Final Inspection as the report type.

If you need both sections of the form completed, select 1004D Update & Final Inspection as the report type. Please note that this is a new, combined report type in our system.

There is generally a cost difference between a Final Inspection and an Update since the scope of work for an Update requires the appraiser to perform additional work. 

Please contact your VMG Client Specialist if you have questions about the fee or do not see this option in your list of available report types.

Valuation Management Group is a national, full service appraisal management company that manages the appraisal process for community banks, mortgage bankers and credit unions.  We take the process from ordinary to extraordinary.

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