VA liquidation for house with no kitchen and no bathroom

[valuecommando]

What condition rating would you call this?

 

[Zoe]

LOL. It is subject to unless liquidation. If liquidation, it is "as is" for VA. There is no in between. Yes, you have to do the liquidation form and do discounts for all the needed repairs and entreprenuerial incentives.

On liquidation, VA is more concerned about "as is" than "subject to". VA don't plan on fixing it.

On liquidation, VA has one goal and that is selling it "as is".

I might add VA needed no bailout. They operate a little differently. They put focus on veteran vs the loan. They are serious market value and appraisal.

 

[Zoe]

VA puts market value opinion above veteran. They didn't require any bailout. It helps the vet. It is like a circle.

They focus on MV appraisal and the veteran. Above all they want what is best for veteran, but they want solid market value appraisal.

 

[valuecommando]

Yes, it's a liquidation. The problem that I'm running into is that some appraisers would classify this as a C5 rating because it has solid walls and a solid roof while others would say that's it's a C6 rating because it has no flooring, no kitchen, and no bathroom. What are your thoughts on the condition rating?

 

[Zoe]

Yes, it's a liquidation. The problem that I'm running into is that some appraisers would classify this as a Q5 rating because it has solid walls and a solid roof while others would say that's it's a Q6 rating because it has no flooring, no kitchen, and no bathroom. What are your thoughts on the condition rating?

You are doing "as is" on liquidation. Why are you worried about Q5 or Q6?

 

[Zoe]

Your killing me hounddog.

 

[valuecommando]

Please excuse me, I misstated something. The question is if the property is a C5 or C6 condition rating based on its current condition. The reason it's important is that a rating has to be assigned to the property in the report.

 

[Zoe]

Untitled Document

Describe the condition of the property (including needed repairs, deterioration, renovations, remodeling, etc.) ]​

Interior/Exterior Complete Inspection Reports:
The appraiser must provide the following information:


Overall Condition Rating – The appraiser must select one of the following ratings that best describes the overall condition of the subject property or unit. For condominium properties, the rating must reflect the overall condition for the individual unit being appraised. Only one selection is permitted. The rating for the subject property must match the overall condition rating that is reported in the Sales Comparison Approach section.

• C1
• C2
• C3
• C4
• C5
• C6

C1 - The improvements have been recently constructed and have not been previously occupied. The entire structure and all components are new and the dwelling features no physical depreciation.


*Note: Newly constructed improvements that feature recycled or previously used materials and/or components can be considered new dwellings provided that the dwelling is placed on a 100 percent new foundation and the recycled materials and the recycled components have been rehabilitated/remanufactured into like-new condition. Improvements that have not been previously occupied are not considered “new” if they have any significant physical depreciation (that is, newly constructed dwellings that have been vacant for an extended period of time without adequate maintenance or upkeep).


C2 - The improvements feature no deferred maintenance, little or no physical depreciation, and require no repairs. Virtually all building components are new or have been recently repaired, refinished, or rehabilitated. All outdated components and finishes have been updated and/or replaced with components that meet current standards. Dwellings in this category are either almost new or have been recently completely renovated and are similar in condition to new construction.


*Note: The improvements represent a relatively new property that is well maintained with no deferred maintenance and little or no physical depreciation, or an older property that has been recently completely renovated.


C3 - The improvements are well maintained and feature limited physical depreciation due to normal wear and tear. Some components, but not every major building component, may be updated or recently rehabilitated. The structure has been well maintained.


*Note: The improvement is in its first-cycle of replacing short-lived building components (appliances, floor coverings, HVAC, etc.) and is being well maintained. Its estimated effective age is less than its actual age. It also may reflect a property in which the majority of short-lived building components have been replaced but not to the level of a complete renovation.


C4 - The improvements feature some minor deferred maintenance and physical deterioration due to normal wear and tear. The dwelling has been adequately maintained and requires only minimal repairs to building components/mechanical systems and cosmetic repairs. All major building components have been adequately maintained and are functionally adequate.


*Note: The estimated effective age may be close to or equal to its actual age. It reflects a property in which some of the short-lived building components have been replaced, and some short-lived building components are at or near the end of their physical life expectancy; however, they still function adequately. Most minor repairs have been addressed on an ongoing basis resulting in an adequately maintained property.


C5 - The improvements feature obvious deferred maintenance and are in need of some significant repairs. Some building components need repairs, rehabilitation, or updating. The functional utility and overall livability are somewhat diminished due to condition, but the dwelling remains useable and functional as a residence.


*Note: Some significant repairs are needed to the improvements due to the lack of adequate maintenance. It reflects a property in which many of its short-lived building components are at the end of or have exceeded their physical life expectancy but remain functional.


C6 - The improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety, soundness, or structural integrity of the improvements. The improvements are in need of substantial repairs and rehabilitation, including many or most major components.


*Note: Substantial repairs are needed to the improvements due to the lack of adequate maintenance or property damage. It reflects a property with conditions severe enough to affect the safety, soundness, or structural integrity of the improvements.


The definitions for the ratings listed above are also provided in Exhibit 1: Requirements – Condition and Quality Ratings Usage.


The appraiser must indicate ‘Yes’ or ‘No’ if there has been any material work done to the kitchen(s) or bathroom(s) in the prior 15 years. If ‘No’, the text ‘No updates in the prior 15 years’ must be provided. If ‘Yes’, additional information for kitchens and bathrooms must be provided.


If information indicating whether material work has been done to the kitchen(s) or bathroom(s) in the prior 15 years is not available to the appraiser in the normal course of business, the appraiser is to either select ‘Yes‘ or ‘No‘ based on the appraiser‘s observations of the subject property and any other available information. The appraiser should indicate the basis for this determination in the appraisal report and describe the efforts undertaken to obtain the information.


Kitchen(s) and Bathroom(s) – Level of Work Completed and Timeframes – The appraiser must identify any work completed in the kitchen(s) and bathroom(s) along with the timeframes in which the work was completed. The appraiser must select one of the values from the lists below for both the kitchen(s) and the bathroom(s).


Level of Work Completed:

• not updated
• updated
• remodeled

Definitions for the Level of Work Completed are provided in Exhibit 2: Requirements – Definitions of Not Updated, Updated, and Remodeled.


Timeframes:

• less than one year ago
• one to five years ago
• six to ten years ago
• eleven to fifteen years ago
• timeframe unknown

Timeframes represent the time period in which the majority of the improvements were completed.


Descriptions or Comments – The appraiser must provide a description of the condition of the improvements to the subject property.


Note, the UAD does not limit the information that an appraiser may provide about the condition of a property, including any updating or remodeling. An appraiser can and must provide any additional information required to communicate an appraisal in a manner that is meaningful and not misleading, including providing sufficient information to enable the client and any other intended user(s) to understand the appraiser's conclusions regarding the property condition and any updates or remodeling.

 

[Zoe]

Me? C6

Your touching safety and soundness and health and safety issues.

How will you live there safely? You poop on the floor?

 

[Dublin ohio]

Please excuse me, I misstated something. The question is if the property is a C5 or C6 condition rating based on its current condition. The reason it's important is that a rating has to be assigned to the property in the report.

I would call it C5 with an explanation since in is not truly "functional" as a residence. C6 is usually need of more serious repairs than putting in a kitchen, bath and flooring