As-is Or Subject To

[PropertyEconomics]

Thanks for your help. I do appreciate it. I have never encountered this specific situation before and wanted to make sure I was on the right track. That is why I came to you for help.

Next time I am in New Mexico, I owe you lunch, but I can't imagine why I would be there.

Other than having 270 days of sunshine, tons of great golf courses, beautiful mountains, and lots and lots of cultural history ... I cant imagine why youd be here either ....

 

[Webbed Feet]

This is a federally related transaction. The bank is not keeping this loan in-house, from what I understand.

Actually, that would be backwards probably. If the bank's intended use is to resell the loan to the secondary mortgage market (Fannie, Freddie, ect.) then this would not be for a FRT, IMO. If the bank is intending to keep the loan in-house and is an insured entity, you have a FRT. A rather misunderstood topic, that appraisers should not misunderstand.

Hope that helps. Also, my SS # is 372-83-4768 and you can have my first born, expected sometime next year.

Have you had an ultrasound to check the health and find out the gender? I'll need that information too before I can give you an answer....

P.S. similar condition means similar condition. It is not related to outstanding C of O's only condition. Again NOT city restrictions. There could be several reasons why the city did not inspect other sales.

Then you have not proven market acceptability of the specific situation, maybe you have about the condition only. I'd wait for more information back about what the implications of a temporary C. of O. are. How can you analyze the problem when not completely informed about the problem?

Webbed.

 

[Mike Kennedy]

Questions/Hints: is there a time limit on the Temp C.ofO. and can the subject transfer under ONLY the Temp. C.of O. with existing apparent cosmetic deferred maintenance......

 

[Richard Carlsen]

Since the C of O is subject to, that means that there is no C of O. Without the C of O, the Market Value of the house is significantly reduced because it cannot be lived in nor financed in a sale.

Make the appraisal report "subject to a cleared C of O (i.e. One with no conditions)". Let the UW worry about getting it and getting a copy to you so you can lift your conditions.

 

[ZZGAMAZZ]

As often happens, the Forum deals with an issue a week before a similar assignment comes my way.

The subject is a SFR being sold in Pasadena, CA, with a "City Occupancy Waver," which per the Building Dept authorizes a purchase transfer with the buyer accepting the responsibility to resolve the issues of deferred maintenance within 30 days, either before or after recordation. The city rep could not answer my question, "What if the issues aren't resolved within 30 days?" and I will visit the Dept in person tomorrow.

Per the agents the pending repairs are purely cosmetic and "not a big deal."

However I don't see how I can appraise this property without it being "subject to" the COO being obtained; and that is not the sceario in this deal. That is to say, the intention is not to obtain the COO prior to funding as far as I am aware.

Caveat: I have absolutely no knowledge of the FRT issue that was cited earlier in this thread.

Questions:

Is there an alternative to "subject to"?
As a cosmetic fixer the property might be described as average condition with a cost to cure, and I would propose to include the cost to cure the COO-related deficiencies among those that are beyond the scope of the COO into a single number, correct?

 

[Webbed Feet]

<...... snip.....>
Per the agents the pending repairs are purely cosmetic and "not a big deal."... snip

And whales can fly to the moon. Why would the city be involved and be granting waivers of occupancy in the first place over "purely cosmetic" items?

Cost to Cure = the most abused topic on the forum and another abused adjustment appraisers make who don't want to extract the real market reaction from the market place.

Webbed.

 

[Hamlet]

And whales can fly to the moon. Why would the city be involved and be granting waivers of occupancy in the first place over "purely cosmetic" items?
Cost to Cure = the most abused topic on the forum and another abused adjustment appraisers make who don't want to extract the real market reaction from the market place.

Webbed.

Must be a snooty neighborhood with wallpaper police on patrol!

 

[ZZGAMAZZ]

The local MLS includes a variety of recently sold, active, and pending fixers as well as restored units. I should be able to extract the C2C handily.

Pasadena does have an elitist repution for requiring compliance. It's rumored that non-permitted areas must be permitted or demolished prior to a transfer. I was surprised that a "waiver" was available.

Is Subject To the advisable alternative?

 

[ZZGAMAZZ]

Donna: A drive through most Pasadena neighborhoods literally evokes a vision of the way life used to be...should be...

 

[ZZGAMAZZ]

Also: The Forum is often divided by the issue of "market reaction" that might contradict "permit status." Do the appraisers who feel that market reaction supercedes permit status opine that a COO is irrelevant?