1. Welcome to AppraisersForum.com, the premiere online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

As-is? CB4? What to do.

Discussion in 'Urgent - Help Needed' started by residentialguy, Nov 1, 2011.

Thread Status:
Not open for further replies.
  1. residentialguy

    residentialguy Elite Member

    74
    Mar 24, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Minnesota
    Doing a FNMA refi. The HBM siding is going to be replaced once the deal is done.

    Issue: Peeling exterior paint. Year built: 1950.

    QUESTION: Would you state the possible health issue of lead based paint and do it "as-is"? Or would you mark Check Box 4 - extraordinary assumption that the condition does not require repair?

    I'm leaning to mark CB4. Am I being too legalistic?
     
  2. William K

    William K Senior Member

    0
    Sep 21, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    AS-IS - state the deferred maintenance, state the potential of lead base paint, state you are not an expert and it is beyond your expertise to test.
     
  3. Marty Boone

    Marty Boone Junior Member

    7
    Oct 11, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Pennsylvania
    I would describe the condition of the siding and go with "As Is" and then add something like;

    The appraiser is not a home or environmental inspector. The appraiser provides an opinion of value. The appraisal does not guarantee that the property is free of defects or environmental problems. The appraiser performs an inspection of visible and accessible areas only. Lead Based Paint may be present, a professional home inspection or environmental inspection is recommended should the client have a concern.

    Just my $.02, obviously FHA gets handled differently.
     
  4. residentialguy

    residentialguy Elite Member

    74
    Mar 24, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Minnesota
    Hmmm....maybe I'm just being too paranoid.
     
  5. Scott R Marshall

    Scott R Marshall Senior Member

    0
    Dec 14, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    For Fannie/Freddie, report what was observed, complete the report "as is" with any costs to cure (repaint) deemed appropriate based on the comparables selected and let the UW's deal with it.

    Of course if it were FHA, it would be a whole different process and would require repair due to the potential of lead.
     
  6. PropertyEconomics

    PropertyEconomics Elite Member

    0
    Jun 19, 2007
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico

    So based upon appraisal theory, it could be completed either way competently and in a non misleading manner ... that being the case I believe the issue would be based upon an assignment condition, absent that condition, either way could be done correctly.
     
  7. Pilgrum

    Pilgrum Senior Member

    13
    Mar 6, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Nevada
    Disclose the condition and let the client make the call.
    If it were FHA you would call for correction.
     
Thread Status:
Not open for further replies.

Share This Page