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  #1  
Old 03-17-2006, 01:54 PM
Cam Goldman Cam Goldman is offline
 
Join Date: Sep 2004
Location: Burbank, CA
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Default a tree in the way

I am appraising a duplex, the rear unit of which has a tree which has grown into the wall of the structure. This is a purchase, and the buyer plans to remove the tree and repair any damage upon closing of escrow. It seems the best way to handle this is a cost-to-cure. Any input on that? The buyer already has a contract for removal of the tree and repair of the situation. I think I've got it covered now. Thank you all for your help.
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Last edited by Cam Goldman : 03-17-2006 at 03:40 PM.
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Old 03-17-2006, 02:06 PM
Wendy Wendy is offline
 
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That one may need a red flag. Don't worry about the lender.

Personally, I would send my client that picture and explain that it will be in the report. Ask if they want you to wait and re-inspect after the tree has been removed and the wall repaired. If not, send in the report with cost to cure.

Don't gloss that over. Is a few hundred bucks worth the liability?
  #3  
Old 03-17-2006, 02:06 PM
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CANative CANative is online now
 
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If there's a red flag it would be misleading to call it a checkered flag, now wouldn't it?

Fannie Mae forms? You would probably have to value it as though the deficiency has been corrected, subject to a hypothetical condition.
  #4  
Old 03-17-2006, 02:07 PM
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Christine Marie Christine Marie is offline
 
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unit A=single family residence; unit B=tree house....????



quite a pickle you've gotten yourself into, that puppy will have to be "subject to tree removal".... and that's what makes it the pickle, CALL LOAN OFFICER immediately.... or you may have to eat that one....Out of curiosity when you looked up from the trunk of that tree, how many of the branches were over the house [roots go out as far as branches, from what i was taught]...
  #5  
Old 03-17-2006, 02:35 PM
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Otis Key Otis Key is offline
 
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Quote:
Originally Posted by Cam Goldman
I am appraising a duplex, the rear unit of which has a tree which has grown into the wall of the structure. This is a purchase, and the buyer plans to remove the tree and repair any damage upon closing of escrow. Is there a way to handle this within the appraisal that will not raise red flags to the lender? Clearly it has to be addressed; the question is how?
Since when did appraisers become concerned about "raising a red flag to the lender"? The lender is going to most likely broker it off to fannie on the secondary market. I'd suggest that you read the certification and limiting conditions again because you're signing something that states certain facts and details. It also has an acknowledgement that it's under penalty of the law.

Looks like to me it's a perfect example for a CB4 use.
  #6  
Old 03-17-2006, 03:02 PM
Cam Goldman Cam Goldman is offline
 
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Thank you - you are absolutely right. I have re-read the Cert. & Limiting Conditions, and there's no question on how to handle this. I appreciate your directness. By the way, please clarifty CB4 reference?
  #7  
Old 03-17-2006, 03:07 PM
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CANative CANative is online now
 
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Otis,

CB4 (check box 4, Cam. Those checkboxes above your value opinion. CB4 is as is but subject to an inspection using the EA that no changes or repairs are necessary) states that an EA was used. What is the uncertain information in regards to this issue. There is clearly damage and the potential for additional damage if left unresolved.

CB3 IMO. Subject to repair.
  #8  
Old 03-17-2006, 03:17 PM
Denis DeSaix Denis DeSaix is offline
 
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I kinda like the way they put the grass on the wall!

Ditto, Otis; it is our job to alert the lender to any legitimate "red flags". Let the UW decide to "waive" your condition.

Good luck!
  #9  
Old 03-17-2006, 07:37 PM
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Marcia Langley Marcia Langley is offline
 
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Ditto Otis and Dennis. CB4 for a structural inspection allows the UW to waive the inspection if they want to let the buyer deal with it afterwards. If they decide it has to be cleared, they can do that instead through the structural experts.

This is better than CB3 because the appraiser really can not say what the extent of the structural damage actually is.

----

Add:

The estimate of value will include a consideration for what the appraiser can determine as a deficiency but reserve judgement on whether there may be additional detriments unknown to the appraiser.

Last edited by Marcia Langley : 03-17-2006 at 07:41 PM.
  #10  
Old 03-17-2006, 07:50 PM
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Lobo Fan Lobo Fan is offline
 
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I think you can be very sure there is damage to the foundation and the structure. At a minimum use CB4 and request a full-on inspection. I would make the report subject-to an inspection and clearance by a qualified stuctural engineer.
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