Appraiser "Recommendations" ?

[ZZGAMAZZ]

Assignment is conventional purchase.
Analysis of seller counter offer revealed comment that "Property to be sold as is. Seller will only make repairs recommended by the appraiser."

For some reason the statement is confusing. I will either condition a property "subject to" the mandatory remediation of specific factors, and/or list various issues of curable, deferred physical maintenance with corresponding costs to cure. However, I never "RECOMMEND repairs.

Realizing that I'm opening myself up to criticism; and also realizing that the terms of a purchase agreement aren't mine to criticize....but peer perspectives are needed. Thanks

 

[swandel1]

I get the confusing part of the verbiage. But you should consider, "what is the intent"? That is what a court would look at (IMHO). I would confirm that they are explicitly referring to any FHA or FNMA mandated repairs (the intent of the verbiage).

 

[George Hatch]

This is not an intended use of the appraisal and the buyer is not an intended user. What they're asking for is arguably an off-label use by an off-label user.

 

[swandel1]

This is not an intended use of the appraisal and the buyer is not an intended user. What they're asking for is arguably an off-label use by an off-label user.

I agree. I was just offering advice on how to interpret the verbiage.

 

[J Grant]

Assignment is conventional purchase.
Analysis of seller counter offer revealed comment that "Property to be sold as is. Seller will only make repairs recommended by the appraiser."

For some reason the statement is confusing. I will either condition a property "subject to" the mandatory remediation of specific factors, and/or list various issues of curable, deferred physical maintenance with corresponding costs to cure. However, I never "RECOMMEND repairs.

Realizing that I'm opening myself up to criticism; and also realizing that the terms of a purchase agreement aren't mine to criticize....but peer perspectives are needed. Thanks

The appraiser is not bound by the terms of a contract purchase agreement. However, all it says is that the seller will only make those repairs recommended by the appraiser."
This is an issue between the seller and the buyer and does not concern you.

So do your job, for your client, as you usually would, wrt making the appraisal subject to a repair if warranted.

 

[swandel1]

The appraiser is not bound by the terms of a contract purchase agreement. However, all it says is that the seller will only make those repairs recommended by the appraiser."
This is an issue between the seller and the buyer and does not concern you.

So do your job, for your client, as you usually would, wrt making the appraisal subject to a repair if warranted.

Correct, but would this not be discussed / analyzed during the purchase contract analysis? It is something that I would seek clarification on the then disclose this in the analysis.

 

[Surf Cat]

Assignment is conventional purchase.
Analysis of seller counter offer revealed comment that "Property to be sold as is. Seller will only make repairs recommended by the appraiser."

Just goes to show that Market participants still don't understand the role of the appraiser in the real estate transaction. Imo.... that statement is a mistake. It should be "recommended by the home inspector". And.... it should only be for health and safety reasons.

It is something that I would seek clarification on the then disclose this in the analysis.

Absolutely.

 

[Dublin ohio]

For some reason the statement is confusing. I will either condition a property "subject to" the mandatory remediation of specific factors, and/or list various issues of curable, deferred physical maintenance with corresponding costs to cure. However, I never "RECOMMEND repairs.

Easy out. Stick to how you typically do it and don't "recommend" any repairs. If there is something that requires a "subject to" it is what it is

 

[J Grant]

A buyer and seller can set any terms they want, and agree on any clause they want to in the purchase contract. THEIR AGREEMENT IS NOT OUR AGREEMENT. The fact that they chose to use the word 'recommend" wrt repairs has no bearing on us.

The contract is between the parties, even if it mentions "the appraiser". You can comment on it as part of contract analysis, if you choose to. FWIW, when a term of sale in a contract looks like it influenced the price or is highly unusual, that is when I comment on it.

Our obligation in the appraisal is to our client. Regardless of what a Sale contract says..

 

[J Grant]

Just goes to show that Market participants still don't understand the role of the appraiser in the real estate transaction. Imo.... that statement is a mistake. It should be "recommended by the home inspector". And.... it should only be for health and safety reasons.


Absolutely.

Doesn't matter. Our job is not to correct sale contract "mistakes." That is for an attorney or a broker. Or nobody.

We analyze the contract, and then we move on and do the appraisal.