Average condition?

[PropertyEconomics]

Anon, take a look at the attached picture....according to your way of doing things, this house would be labeled in the sales comparison grid as being in average condition since it is pretty much typical of this particular neighborhood (almost every house on this block is in similar condition and the majority of the houses in the surrounding neighborhood are in similar condition) ....please tell me whether or not you think that would be a problem.

Average rooms with no views. Seems pretty simple to me

 

[timd354]

Average rooms with no views. Seems pretty simple to me

PE, take a look at the rowhouse to the viewer's left in the picture...apparently the window in that rowhouse is in "good" condition, becuase there actually is a window.

 

[Mike Seward]

Pick me up off the floor.
Original poster here. The subject has FILTHY, stained carpets and deep scratches on all the door trim.

I just spoke to an aqaintance who is an FHA Certified Underwriter who has had an FHA CHUMS number since 1983.

He said it is not logical to say a property with deferred maintenance like that is average (similar) condition to area propertys that don't have deferred maintenance.

He went on to say:

"FHA hates anything below average. If the appraiser sees something that makes the property be below average, EVEN THOUGH COSMETIC, the appraiser must call for repairs to bring it up to average."

 

[AnonApprsr]

Makes sense to me.

 

[PropertyEconomics]

Makes sense to me.

How can that make sense to you .. you call everything average and yet you just have a poster say if its below average FHA doesnt wnat it unless its repaired ... no repairs would ever be done on properties you appraise .. they are all average in relation to one another ... right?

 

[NC Appraising]

FHA Appraisals

Mike,

I'm not going to touch the condition issue anymore.

Here is how you should report the condition from the horses mouth. Let's stop this my friend said, the way I was taught, based on my experience stuff.



examples of minor property conditions that no longer require automatic repair for existing properties:

-defective floor finish or covering, (worn through the finish, badly soiled carpeting) mortgagee letter 2005 ML-48 FHA/HUD

App D cosmetic repairs are not required.

Does the badly soiled carpet or scratched trim pieces:

affect the safety, security or structural integrity of the property? No. Do the item's meet the MPS AND MPR? Yes

 

[Mike Seward]

NC,
The defective floor finish is one of 13 items listed in that mortgee letter. Should we ignore any/all of them when assessing the overall condition of a property?
Our friends at Fannie say that average means "similar" to other properties based on market expectations for properties of similar age and price range.
Would a property that had leaky faucets, badly soiled carpet, rotten/worn out counter tops or damaged plaster/sheetrock be considered similar to competing properties that don't have those issues?

 

[BRCJR]

Serial comp checker, eh? Yeah <10 times a year, in relation to 300-600 appraisals a year, for sure!

And on page 1, I describe in detail, the Subject's condition. On the 2nd page of a 1004 it's all about the relation to other properties.

It's no surprise that you would assume away! Where's PE to tell me I'm back peddling?

Quit a spread in number of appraisals per year, how do you manage all the employees it would take to do this workload? How many do you employee?

 

[AnonApprsr]

I'm the subordinate, and then there's my boss. We've been in business since 2001, and we're on our 4100th appraisal. I didn't start doing appraisals until late 2003, I trained from 2002 though. My Boss is truly a hard worker. He was seeing 3 a day, typing 1 maybe 2 (if they were cookie cutter) at the high point of the business, 18 hour days.

 

[AnonApprsr]

How can that make sense to you .. you call everything average and yet you just have a poster say if its below average FHA doesnt wnat it unless its repaired ... no repairs would ever be done on properties you appraise .. they are all average in relation to one another ... right?

No. Not REOs anyway. I'm talking at worse the Average properties would need new carpeting, and perhaps a few windows. These days in the REO Apps I do, few are average. I exaggerate, but only to see that people over react. W/E.