Recertification of Value

What is a "Recertification of Value"?

Advisory Opinion #3 says:

”A Recertification of Value is performed to confirm whether or not the conditions of a prior appraisal have been met. A Recertification of Value does not change the effective date of the value opinion”

A "Recertification of Value" is what most appraisers and lenders call a final inspection or completion certificate. If the client wants a current value, it is an “Update of an Appraisal”.

A “Recertification of Value” is often used when an appraisal is done using plans and specs or when the house is partially complete. A “Recertification of Value” is also used when an appraisal is subject to repairs or alterations.

A “Recertification of Value” is actually intended to say, “I appraised this house last year for $300,000. Had it been complete (or repaired) at the time of the appraisal, it would have been worth what my appraisal said it was worth.” In other words, the conditions of the prior appraisal have been satisfied.

A "Recertification of Value" and an "Update of an Appraisal" are not interchangeable assignments as many believe. The appraiser must know the intended use before deciding which service to provide.