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Hypothetical Condition, but AS IS value

Discussion in 'Urgent - Help Needed' started by celilola, May 4, 2012.

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  1. CANative

    CANative Elite Member

    155
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Randolf's being a troll.

    :rof:
     
  2. residentialguy

    residentialguy Elite Member

    135
    Mar 24, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Minnesota
    tips for those starting out: In this business we are authors. We also review our piers; thus we are also critics. Our composure's are critiqued. Experienced authors and critics gain a keen sense of awareness. After a while, as critics, we can start to see the author, when we review their work. Their intellect, their insecurities, all their personality strengths and weaknesses. When I read these posts, i feel the same way. Do ya notice the personality strengths and weaknesses? The intellect & insecurities of the author? My advise: take pride in your composure's and critiques. Those of us who read your work, can see more than you might think. :Emoticon_hug:
     
  3. sandpiperapp

    sandpiperapp Senior Member

    21
    Apr 5, 2011
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Man you are funny, a little twisted perhaps, but funny.
    As in our reports, you should note that Bob made a material contribution to your post.
     
  4. residentialguy

    residentialguy Elite Member

    135
    Mar 24, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Minnesota
    Ok. Sorry for the mis-spelled words in post 12....Bob made me do it :rof:
     
  5. leelansford

    leelansford Elite Member

    45
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois

    To answer your question (assuming here that you are offering but a single opinion of value): No.

    .
     
  6. celilola

    celilola Sophomore Member

    0
    Jan 9, 2011
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    Simple enough. Thanks very much!!!!!!:clapping:
     
  7. Webbed Feet

    Webbed Feet Elite Member

    23
    Feb 11, 2005
    Professional Status:
    Certified Residential Appraiser
    I am going to intentionally confuse you now and refute Brother Lansfords answer.

    Given that you've failed to outline the SoW that must be first considered in any possible answer to your question, the only correct answer is...

    MAYBE and THAT DEPENDS

    The reason is due to the fact that posters with "simple questions" that utterly fail to outline the SoW the question(s) are based upon have not asked simple questions at all. The only thing they have done is cause a thread that proves most the responders should have required SoW details before answering.
     
  8. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    196
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    It appears certain ducks like to argue about SoW, and many times rightfully so. However I am trying to think of any type of SoW that would let an As-Is value have a HC. A HC is something we know to be not true and therefore I cannot I cannot think of a SoW that would allow an As-Is to have a HC.

    I will agree with Mr. Lansford.
     
  9. J Grant

    J Grant Elite Member

    240
    Dec 9, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    To answer your question (assuming here that you are offering but a single opinion of value): No.

    I agree with the above.

    One comment, make sure your condition rating reflects the amount of damage you observed, and explain.

    If rest of house is well maintained and the water damage is confined to a very small area, explain why house has a "C3" rating, despite the small area of water damage.

    If the damage is a larger area, and/or the rest of the house needs updating, the roof is older, etc, you might give it a C4 rating, and explain.

    Anything below a C4 rating, per guidelines now for most lenders, needs to be made "subject to repair", (repairs being those needed to bring the subject to a C4 rating)
     
    Last edited: May 5, 2012
  10. Webbed Feet

    Webbed Feet Elite Member

    23
    Feb 11, 2005
    Professional Status:
    Certified Residential Appraiser
    Value must be defined.

    Sigh........ We're all going to have to stand in a circle and sing camping songs on this one. I see it coming.

    I'll have to offer a cure to the form think illness taking place here as it is highly contagious. ;)

    When we produce reports without HCs invoked for mortgage purposes with URAR reporting, I have to refute that these reports contain "As-Is Value" conclusions. They cannot. The USPAP requires that all types of value opined within appraisal reports be defined. If an appraiser believes they are opining “As-Is Value,” I suggest they had better be quoting their source for a definition of the "As-Is Value," that they are using and then be explaining why it is they are opining to two value definitions for the mortgage assignment.

    Many in the appraisal trade have seriously confused Fannie forms CB1 to mean "As-Is Value," when it cannot mean that or this would mean years of URARs based appraisal reports all violate the USPAP as none of the appraisers involved supplied a definition for that value type. Fannie, in her constant hurry and lack of appraisal acumen, should have used the words "This appraisal report is made ...” in the reconciliation sections of the Fannie appraisal report forms. Once we clear up that it is the reports that are "As Is," not the values, things begin to fall into place. Additionally, an opined market value can be subject to a condition as described in a report. That does not make it a "Subject To Value," it makes it a “Subject To” report.

    I feel what confuses the trade is too many trade members mentally substituted “value” for “report” whenever they think about reconciliation section check-boxes of form reporting. It is needed for the trade to recognize that those forms are really communicating something else meant by those check-boxes. CB1 one should be viewed to mean “No Action Required” for the opined value to be credible. The other check-boxes should be viewed to mean “Action Required” for the opined value to be credible. This is debatable regarding proposed new construction, as I would agree that the value conclusion should be viewed credible even if the construction never takes place. Regardless, the value used was market value, not some other value.

    Hence, it is entirely possible to craft a SoW that does not employ any form reporting to invoke a hypothetical condition yet have no action required for the opined value to be credible. Therefore, once under the umbrella of the hypothetical, the REPORT is “As Is.” Some could say such a report to be “As If,” but the main thrust still remains that there is no action required for the opined value to be credible. If the value for the assignment is defined to be “Market Value” the value is precisely that, it is not “As-Is Value” and it is not “As-If Value” either.

    Thank You,
    Webbed
     
    Last edited: May 6, 2012
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