Subject to, once repaired the condition will improve, does it need to be bracketed? Hadn't come across this situation before. Doing an FHA purchase on an REO property that was vandalized (AC unit, water heater, kitchen and bathroom fixtures, broken window etc..) with the overwhelming majority of repairs being required by FHA to meet MPR's. So as it stands now, the property is considered between fair to average minus but since the majority of repairs are required by FHA and the appraisal is "subject to" the required repairs, the property condition and market value will increase once repaired although the contract was written with the borrower getting money back for the AC unit not realizing FHA wants the repairs prior for this loan (not a 203K). The contract was written at a price point based on the home needing many repairs. In order to close it will be improved thus eliminating the majority of the damage so my opinion of value will be higher based on its repaired value. Has anybody else come across this type of situation before? Also, how imperative is it that the current condition is bracketed if it's getting repairs? I tried but couldn't find comparables of similar condition.