Lgi Value When The House Is Structurally Damaged

[ROBERT JONES]

My subject is a twin townhouse - attached to another vacant REO. The crawl space has so much water in it there is water coming out of the vents. This moisture has rendered the first floor joists spongy to the point I felt like I was going through. The whole house has a list to it, various walls are separating from the ceilings, and at the party wall the floor has dropped about 8 inches. There are no sales that can be verified in similar condition, and I am not an engineer - what route would be recommended.

 

[Don Clark]

My subject is a twin townhouse - attached to another vacant REO. The crawl space has so much water in it there is water coming out of the vents. This moisture has rendered the first floor joists spongy to the point I felt like I was going through. The whole house has a list to it, various walls are separating from the ceilings, and at the party wall the floor has dropped about 8 inches. There are no sales that can be verified in similar condition, and I am not an engineer - what route would be recommended.

C6 as noted in Fannie Mae Forms. I have completed many that were worse. be careful. Do not risk life and limb.

 

[Meandering]

Bulldozer.

 

[Meandering]

When too much water is inside a house for too long, the studs are not salvageable, meaning, you can not let them dry out and then nail fresh sheet rock to them.

Look for sales of other fully depreciated buildings that were razed in favor of new structures being built. Most likely you won't find many in the MLS because there is little in commission for an agent to gain, with lots of liability.

Start with new buildings and work backward to what was there when they bought the land.

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[Meandering]

Check with town and county tax assessors and planning departments for a list of buildings that were razed and new buildings built. It's a lot of leg work, hope you can charge enough for this assignment.

 

[Meandering]

One other thing to check, 'cause I've seen this one before...........

If your home is listing, and is an OLD structure, pre-dating wetlands laws and zoning and planning laws, verify with the township, if bulldozed, can a new building be built there, or is the water table too high to support a proper foundation in the current environment. And if not, how would any grandfather clause impact a new buyer to replace the building anyway.

Stuff you need to know.

 

[Amy Perkins]

"Recommend inspection by structural engineer. The appraiser is not a structural engineer. Should the subject property have structural damage; the appraiser reserves the right to amend the report based on those costs."

 

[Howard Klahr]

What is "LGI Value"?

 

[Mike Garrett RAA]

LGI is the VA classification of liquidation appraisal.

 

[Don Clark]

"Recommend inspection by structural engineer. The appraiser is not a structural engineer. Should the subject property have structural damage; the appraiser reserves the right to amend the report based on those costs."

Not going to be acceptable to the VA. The VA Appraiser uses his/her best effort to describe the condition of the subject based on a visual inspection. They do not require that you do anything beyond that.