Appraisal transfer policy

Why a transfer is treated as a new assignment

For those homeowners who need an appraisal “retype,” “readdressing” or “transfer” to a new lender, please be advised that the original lender is still our confidential appraisal client — no matter who paid for the appraisal. Out of loyalty to our original lender client, we would prefer NOT to get involved in a transfer to a new lender. However, out of courtesy to you and your new lender, we will help — but only under certain conditions. Due to the many changes in appraisal regulations concerning original client privacy, “intended use,” “intended user” and the numerous security features included in the original report, we must treat your request as if it were a completely new “update” appraisal assignment.

What an update involves

As part of our service to you, we will have to re-inspect the exterior of the subject property to confirm its previous condition as of today’s date. We will also perform new appraisal research to see if any better, more recently closed comparables have become available. We will have to take new photos of the subject property and photos of any new comparable sales. We must also modify several components of the appraisal report including many security features, client & borrower information, effective date, signing date, FIRREA and USPAP addenda. We may also have to modify flood maps, location maps and photo pages. We must perform all these “update” functions for you — even if the old report was completed last week!

The only thing we don’t have to handle a second time is the floorplan. We reduce our regular appraisal fee by fifty dollars since we don’t have to re-measure the home — so our transfer fee is a minimum of $300.00, depending on the type of appraisal report we performed for our original client.

Fees and turnaround

Even though you may only want us to “readdress” the report, please remember that we must perform a brand new appraisal report as of today’s date for a new lender client. The new lender’s underwriter may ask for several follow-up modifications to our appraisal, and we will not accept this new liability lightly. However, we will be able to handle most transfer requests in 24 hours after receiving your authorization. This way, you will not have to wait two weeks for a new appraisal.

How we process requests

We handle all “transfer,” “readdressing” and “update” requests in the order in which payment has been received. After we receive advance payment, we start the process. If your need is very urgent, please express mail or courier your payment to us. “While you wait” or “same day” service is not available due to our workload. We no longer prepare reports in advance for pickup, and we no longer deliver reports and collect payment at delivery — we use email or express mail only.

Readdressing is a new assignment

Every appraisal request is a new assignment, whether it is an update or a readdressing. Advisory Opinions AO-26 (Readdressing/Transferring a Report to Another Party) and AO-27 (Appraising the Same Property for a New Client) both confirm this. Simply changing the client name on a report cannot change or replace the original appraiser-client relationship, and doing so would be misleading. Instead, the appraiser may treat the new client’s request as a new assignment, establishing a new appraiser-client relationship.

For a full, current explanation of federal regulations regarding readdressing and transfers, you may also contact Ann O’Rourke at (800) 839-0014 — appraisaltoday.com.

Note: This policy summary is provided for general guidance. Specific USPAP citations are being reviewed and updated as part of the site redesign — please confirm current fees and timing with our office before ordering a transfer.

Ready to start a transfer, or have a question first? Order an appraisal or review our fee list.