'As is' with accessory unit

[esturni]

Hi all.. always wondered how other appraisers handle this.

I have a two family being illegally used as a 3. Client requested an 'as is' appraisal with a cost to cure to remove the illegal kitchen/unit.

My question is this.. in the sketch, description, etc.. do you show the 3 units? I know that makes sense, since it is 'as is', and that is what's there right now, but it seems misleading. For example, in the sale comparison, the subject will have a room count for 3 units, but we are appraising as a 2 family. What say you appraisers?

 

[CANative]

How can you appraise something "as is" when it is "as not?"

 

[esturni]

Haha good question. In my thinking the cost to cure takes care of it

 

[CANative]

No it doesn't. C2C is just a measurement of functional obsolesence. The property is still being used illegally. How does an appraiser's estimate of the cost to modify the structure change the ongoing use or make the collateral suitable for the intended use?

 

[Terrel L. Shields]

Kill the occupant(s) and declare it two units.... They are illegal anyway and probably immoral too...

To comply I would assume you have to provide both an "AS IS" value and "AS IF" value

 

[hastalavista]

Haha good question. In my thinking the cost to cure takes care of it

No. According to that logic, a cost-to-cure would turn a hypothetical condition appraisal into an as-is appraisal. And I think when you look at it that way, you probably see the problem.

You certainly wouldn't want to change the as-is configuration of the sketch into something that is not. That would be misleading for an as-is appraisal.

Here's my opinion: The suggestion offered by the client is not part of the solution to the appraisal problem you are asked to solve. If an as-is appraisal is required, then the subject needs to be appraised as-is. :new_smile-l:

 

[Mile High Trout]

Withdrawn, see above comments.

 

[23Degrees]

Hi all.. always wondered how other appraisers handle this.

I have a two family being illegally used as a 3. Client requested an 'as is' appraisal with a cost to cure to remove the illegal kitchen/unit.

My question is this.. in the sketch, description, etc.. do you show the 3 units? I know that makes sense, since it is 'as is', and that is what's there right now, but it seems misleading. For example, in the sale comparison, the subject will have a room count for 3 units, but we are appraising as a 2 family. What say you appraisers?

You say the client requested an "as is" report. Was this in the engagement letter that you accepted or was this an after the fact requirement when the client realized the property was somewhat of a potential problem?

 

[AnonApprsr]

Cost to cure? How much does it cost to remove a stove?

 

[hastalavista]

Cost to cure? How much does it cost to remove a stove?

Probably not a lot. But presumably a lot less than to remove

the illegal kitchen/unit

(my bold)