Real Estate Appraisal Forum

appraisersforum.com logo
The Premiere Online Community for Real Estate Appraisers!
 Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
 
 
Go Back   Appraisers Forum > Real Estate Appraisal Forums > Urgent - Help Needed
Register Help Our Rules Calendar Archives Mark Forums Read


Closed Thread
 
Thread Tools
  #1  
Old 09-21-2011, 01:45 PM
Scott R Marshall's Avatar
Scott R Marshall Scott R Marshall is offline
 
Join Date: Dec 2006
Location: Rio Rancho, NM
State: New Mexico
Professional Status: Certified Residential Appraiser
Posts: 2,473
Default Do I care about this red flag on the property?

Here's the scenario. In doing my general research I noticed there was a flag on the property by the local municipality. This is in the same database I utilize to confirm acreage for properties in the area and it caught my eye. The subject is on a private well. The local municipality requires wells in the area to be permitted. The last permit for my subjects well expired in 2008. Per the local municipality, while the property can transfer ownership, no additional permits for anything regarding the subject property will be issued until the well permit issue is resolved. I do not know what will or will not be required in order to get a current well permit and I do not know if getting the permit is complicated by the fact that public water service is available at the lot line.

So my question is do I care? Or better yet, would you care?
Sponsored Links

  #2  
Old 09-21-2011, 02:01 PM
CANative's Avatar
CANative CANative is offline
 
Join Date: Jun 2003
Location: Hopland, CA
State: California
Professional Status: Certified Residential Appraiser
Posts: 44,869
Default

Condition your appraisal on an EA.

Edit: Discuss with client prior to doing this.
__________________
"OMG! What's wrong with you?"
  #3  
Old 09-21-2011, 02:09 PM
Mr Rex's Avatar
Mr Rex Mr Rex is offline
 
Join Date: Jan 2004
Location: X Marks the spot
State: North Carolina
Professional Status: Certified Residential Appraiser
Posts: 25,702
Default So my question is do I care? Or better yet, would you care

I suspect the average market participant would be interested in if they have a "legal" source of potable water.
__________________
You talking to me?
  #4  
Old 09-21-2011, 02:11 PM
Peter LeQuire's Avatar
Peter LeQuire Peter LeQuire is offline
 
Join Date: Jan 2005
Location: A long way from Nutbush
State: Tennessee
Professional Status: Certified Residential Appraiser
Posts: 5,397
Default

Quote:
Originally Posted by Scott R Marshall View Post
Here's the scenario. In doing my general research I noticed there was a flag on the property by the local municipality. This is in the same database I utilize to confirm acreage for properties in the area and it caught my eye. The subject is on a private well. The local municipality requires wells in the area to be permitted. The last permit for my subjects well expired in 2008. Per the local municipality, while the property can transfer ownership, no additional permits for anything regarding the subject property will be issued until the well permit issue is resolved. I do not know what will or will not be required in order to get a current well permit and I do not know if getting the permit is complicated by the fact that public water service is available at the lot line.

So my question is do I care? Or better yet, would you care?
I would care. The way this is worded, it sounds as if the municipality must periodically permit existing wells. (Or does it reflect the life of the permit to install the well? Does "resolving the permit issue" means reissuance of the permit or confirming whether the well was completed within the life of the permit?) I don't know whether permitting the well is to test the quality and flow of water, or something else. If there is any question about water supply to the house, I think I'd confirm whether the house could be connected to public water and if it can, adjust my appraisal to reflect the cost to connect (plus whatever hassle factor might be appropriate). I would wonder what would have to be done to establish marketability of a house without a permitted water supply, if that is implied in the permit situation.
__________________
Incumbent - A person of the liveliest interest to the outcumbants. A. Bierce
  #5  
Old 09-21-2011, 02:15 PM
CANative's Avatar
CANative CANative is offline
 
Join Date: Jun 2003
Location: Hopland, CA
State: California
Professional Status: Certified Residential Appraiser
Posts: 44,869
Default

The usual problem in these situations is that you're not going to get a ruling by the municipality in the time frame appraisals and loans take.
__________________
"OMG! What's wrong with you?"
  #6  
Old 09-21-2011, 02:17 PM
Scott R Marshall's Avatar
Scott R Marshall Scott R Marshall is offline
 
Join Date: Dec 2006
Location: Rio Rancho, NM
State: New Mexico
Professional Status: Certified Residential Appraiser
Posts: 2,473
Default

Found out a bit more. The owner applied for a well permit in order to drill a well. That permit is normally good for 1 year during which time a final inspection on the well is performed, resulting in a "permanent" well permit. In this instance, the borrower never called for a final inspection to be done on the well, with the result being the 1 year permit expiring.

So now does this change things?
  #7  
Old 09-21-2011, 02:19 PM
Mr Rex's Avatar
Mr Rex Mr Rex is offline
 
Join Date: Jan 2004
Location: X Marks the spot
State: North Carolina
Professional Status: Certified Residential Appraiser
Posts: 25,702
Default

I bet he gets a kick out of drinking outlaw water.
__________________
You talking to me?
  #8  
Old 09-21-2011, 02:22 PM
CANative's Avatar
CANative CANative is offline
 
Join Date: Jun 2003
Location: Hopland, CA
State: California
Professional Status: Certified Residential Appraiser
Posts: 44,869
Default

Quote:
Originally Posted by Scott R Marshall View Post
Found out a bit more. The owner applied for a well permit in order to drill a well. That permit is normally good for 1 year during which time a final inspection on the well is performed, resulting in a "permanent" well permit. In this instance, the borrower never called for a final inspection to be done on the well, with the result being the 1 year permit expiring.

So now does this change things?
He needs to start the permitting process over again. Your assumption for purposes of appraisal is that he complied with installing a proper well and that the water is good and of sufficient quantity and that the permits will be issued and everything will be hunky dory.

Extraordinary Assumption.
__________________
"OMG! What's wrong with you?"
  #9  
Old 09-21-2011, 04:26 PM
Peter LeQuire's Avatar
Peter LeQuire Peter LeQuire is offline
 
Join Date: Jan 2005
Location: A long way from Nutbush
State: Tennessee
Professional Status: Certified Residential Appraiser
Posts: 5,397
Default

Quote:
Originally Posted by CANative View Post
He needs to start the permitting process over again. Your assumption for purposes of appraisal is that he complied with installing a proper well and that the water is good and of sufficient quantity and that the permits will be issued and everything will be hunky dory.

Extraordinary Assumption.
Das it!

There is the possibility that the municipality uses its permit process as a revenue generator. It would be a matter of interest to me whether it would be cheaper to connect to public water than to get the permit. Other things equal (which I know they never are) I would think that public water might be a more reliable water source and cheaper overall than maintaing a well.

But CAN has it right for the appraisal.
__________________
Incumbent - A person of the liveliest interest to the outcumbants. A. Bierce
Sponsored Links

Closed Thread


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump




Copyright © 2000-, AppraisersForum.com, All Rights Reserved
     Terms of Use  Privacy Policy
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com

Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
Partner Sites:
AppraiserUSA.com - National Appraiser Directory AllDomainsUSA.com - Domain Name Registration
DeadbeatListings.com - Deadbeat ListingsAppraiserSites.com - Web Hosting for the Professional Real Estate Appraiser
Find FHA Appraisers - FHA Appraiser Search Commercial Appraisers - Commercial Appraiser Search
Relocation Appraisal - Find Relocation Appraisers Domain Reseller - Business Opportunity
Home Security Buzz - Home Security Info Radon Testing - Radon Gas Info
My Medicare Forum - Medicare Info Stop Smoking Help - Help Quitting Smoking
CordlessPhoneStore.com - Great Cordless Phones AndroidTabletCity.com - Android Tablet Computers

Follow AppraisersForum.com:          Find us on Facebook            Follow us on Twitter


All times are GMT -5. The time now is 04:49 AM.

SiteMap: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93