Open walls - Exposed Insulation

[newyork12345]

I inspected a home that was in the process of renovation. The majority of the home was done, but the downstairs hallway and part of the upstairs lacked sheetrock. The walls were open with paperbacked insulation between the studs. The homeowners live in the house full-time, and the kitchen, baths, living areas and bedrooms are all finished. I know the open walls are considered a safety issue, but as the rest of the house is in good condition does it still warrant a C6 condition rating? Or does the condition of the finished areas count for something and can i give it a C5 rating? I'm having a hard time deciding. Thanks for any insight you can provide.

 

[bnmappraisal]

Why would you consider the entire house's condition C6 (that's a tear down!) ???
And why would you think the entire house's condition C5??? (just a step above a tear down, but still "livable")

Sounds like, from your comments, overall is in good condition with some deferred maintenance (hallway) .... C4?

 

[Tom4value]

Not being a wise guy here but why are you asking us? Since you are using UAD terms, I know this appraisal is for financing. Consult your client. Unless it is a rehab loan, they can’t do the loan “as-is”. They will either have you do it “subject to” or the loan (and appraisal) is cancelled. Either way, C5 or C6 will not factor into the equation.

 

[andrew81]

if it is your opinion that any portion of the property negatively affects the safety, soundness, or structural integrity of the improvements, then it must be rated C6, and completed subject-to repair

If a property’s overall rating could be C2, C3, C4, or C5 for Condition, but there is one item alone
that could be rated a C6, how should the property be rated?
The condition of the property should be determined holistically and the best definition should be
applied as the overall rating. However, the C6 rating is an exception because it indicates that
the property suffers from trait(s) that negatively affect the safety, soundness, or structural
integrity of the improvements. As a result, if any portion of the dwelling is rated a C6, the whole
dwelling must be rated a C6.

 

[Tim The Enchanter]

Sounds like C3 or C4 to me, with some minor? drywall work and paint to finish.
I don't see it as a safety hazard. See what the client wants. Subject to, or cost to cure and as is.

 

[BRCJR]

Not being a wise guy here but why are you asking us? Since you are using UAD terms, I know this appraisal is for financing. Consult your client. Unless it is a rehab loan, they can’t do the loan “as-is”. They will either have you do it “subject to” or the loan (and appraisal) is cancelled. Either way, C5 or C6 will not factor into the equation.

Where did you find a directive indicating this cannot be done "as is"?

 

[J Grant]

I inspected a home that was in the process of renovation. The majority of the home was done, but the downstairs hallway and part of the upstairs lacked sheetrock. The walls were open with paperbacked insulation between the studs. The homeowners live in the house full-time, and the kitchen, baths, living areas and bedrooms are all finished. I know the open walls are considered a safety issue, but as the rest of the house is in good condition does it still warrant a C6 condition rating? Or does the condition of the finished areas count for something and can i give it a C5 rating? I'm having a hard time deciding. Thanks for any insight you can provide.

Imo it is not a safety issue, it is a semi finished area What safety hazard does it present, short of holding a match to it... I would ask client though - do they want it as is or subject to finish -report can be made as is with a cost to cure and any impact on value, or make subject to install the Sheetrock.

 

[jay trotta]

I inspected a home that was in the process of renovation. The majority of the home was done, but the downstairs hallway and part of the upstairs lacked sheetrock. The walls were open with paperbacked insulation between the studs. The homeowners live in the house full-time, and the kitchen, baths, living areas and bedrooms are all finished. I know the open walls are considered a safety issue, but as the rest of the house is in good condition does it still warrant a C6 condition rating? Or does the condition of the finished areas count for something and can i give it a C5 rating? I'm having a hard time deciding. Thanks for any insight you can provide.

Just a thought or two;
Are you overthinking the problem ?
How much sheetrock would be required to Finish those area's ?
Are they hiring out the work or doing it themselves ?
Do you have a Cost Estimate to Finish the work ?

Agree with most, why would a C6 rating be applicable ?

 

[Terrel L. Shields]

What loan program? In house bank? FNMA (Fannie Mae)? FHA? VA? Each loan program has rules. An in house lender needs an as is value if above de minimus. Secondary market wants subject to values usually. Insulation is not a hazard. Condition sounds more like C3.

 

[glenn walker]

I inspected a home that was in the process of renovation. The majority of the home was done, but the downstairs hallway and part of the upstairs lacked sheetrock. The walls were open with paperbacked insulation between the studs. The homeowners live in the house full-time, and the kitchen, baths, living areas and bedrooms are all finished. I know the open walls are considered a safety issue, but as the rest of the house is in good condition does it still warrant a C6 condition rating? Or does the condition of the finished areas count for something and can i give it a C5 rating? I'm having a hard time deciding. Thanks for any insight you can provide.

A C-6 is a tear down- A C-5 is really bad - A house like you described is a C-4 "Subject too " The drywall being installed.