Conventional

[2020]

I'm working on an assignment for conventional 1004. The subject needs a new roof and the contract states that the seller is having a new roof installed. The seller wants as is but shouldn't this be subject to?

 

[swandel1]

You could or you could also use hypothetical assumption.

 

[Mike Ault]

I'm working on an assignment for conventional 1004. The subject needs a new roof and the contract states that the seller is having a new roof installed. The seller wants as is but shouldn't this be subject to?

I don't intentionally appraise something with with a bad roof in "as is" condition without specific instructions to do so from my client. The GSE's won't take anything with a checkbox marked "Yes" on page 1 of the URAR where it states "Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property?" in "as is" condition and a bad roof certainly fits that description.

 

[George Hatch]

"Subject to" something being done is an HC.

"If the roof was fixed, this is what the value would be " is hypothetical. You know for a fact the roof needs repair but are valuing as if it didn't need anything right now. The reason you're using the hypothesis is in order to value the property per the minimum criteria for that user's decision making.

"The roof looks okay. I assume it's in operating condition" is an assumption. You have reason to make that assumption but for whatever reason you're not entirely sure if it's in operating condition.

"Extraordinary assumption" functions just like any other assumption except that it's specific to this assignment (making it atypical or extraordinary) whereas the "standard assumptions" are so common that they apply to most assignments.

 

[Dublin ohio]

I'm working on an assignment for conventional 1004. The subject needs a new roof and the contract states that the seller is having a new roof installed. The seller wants as is but shouldn't this be subject to?

It could be quite a while before that roof can be put on. Minimum recommended temperature for installation of shingles is 40 degrees

 

[Mike Ault]

It could be quite a while before that roof can be put on. Minimum recommended temperature for installation of shingles is 40 degrees

Escrow holdback.

 

[J Grant]

It is up to your client whether the appraisal should be done AS IS, or made subject to a new roof being installed.
I bet the appraisal needs to be done "as is ", but ASK YOUR CLIENT.

A sale contract is between the buyer and the seller. We do not appraise according to what a sales contract says. Our obligation is to analyze the contract for page one of the appraisal report.

 

[Mike Ault]

It is up to your client whether the appraisal should be done AS IS, or made subject to a new roof being installed.
I bet the appraisal needs to be done "as is ", but ASK YOUR CLIENT.

A sale contract is between the buyer and the seller. We do not appraise according to what a sales contract says. Our obligation is to analyze the contract for page one of the appraisal report.

The client won't be able to broker the loan to most typical secondary market investors in "as is" condition if the appraiser does the correct thing and marks "yes" to the physical deficiencies checkbox on the first page of the URAR, so the decision-making takes care of itself. Now, if they are holding the loan in-house it's a whole different matter and they can deal with that pesky checkbox being correctly marked.

 

[Zoe]

Look at it from buyer perspective. Buyer and seller can negotiate on closing date. People roof a house in a day.

Me, I would do subject to. If you don't do subject to then you need to do both as is and subject to for your client.

I can't complete an appraisal in a day anymore. Roofers with several people working can do a roof in a day. Tear off and whole job.

Especially if they are mexicans. Mexicans can crawl that roof like squirrel.

 

[Mike Ault]

If you don't do subject to then you need to do both as is and subject to for your client.

Why would you need to do both?