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203k Loan; Repair List Is Not Plans And Specifications!

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Midwest Guy

Senior Member
Joined
Dec 12, 2006
Professional Status
Certified Residential Appraiser
State
Missouri
I have a client that insists I change a box from subject to repair to Subject to Plans and Specs, problem, I was given a repair list with costs, not any close to a layout.

Plans, Specifications and Estimates (PS&E) are the detailed plans and accompanying specifications and construction cost estimates which serve as documents for construction contract letting purposes. Plans are the contract drawings which show the location, character, and dimensions of the prescribed work, including layouts, profiles, cross section, other miscellaneous details, and quantity summaries. Specifications are the compilation of provisions and requirements for the performance of prescribed work. The estimate is a list of all bid items and quantities estimated bid prices, total cost for each bid item, and the total estimated cost for the proposed project.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
I have a client that insists I change a box from subject to repair to Subject to Plans and Specs, problem, I was given a repair list with costs, not any close to a layout.

Plans, Specifications and Estimates (PS&E) are the detailed plans and accompanying specifications and construction cost estimates which serve as documents for construction contract letting purposes. Plans are the contract drawings which show the location, character, and dimensions of the prescribed work, including layouts, profiles, cross section, other miscellaneous details, and quantity summaries. Specifications are the compilation of provisions and requirements for the performance of prescribed work. The estimate is a list of all bid items and quantities estimated bid prices, total cost for each bid item, and the total estimated cost for the proposed project.

If you are provided with pre recognized issues and plans and or specs to cure these issues then i'm not sure what you are after. Either you require the repairs or the repairs are detailed for you. If already detailed then check box 2 not 3.
 

Tom D

Senior Member
Gold Supporting Member
Joined
May 22, 2015
Professional Status
Certified Residential Appraiser
State
Pennsylvania
plans and specs are more for new construction. you don't need plans for repair items, or cosmetic changes. how many of use do a new development where we only see the specs, and a rendering? plans are quite detailed as to where items are to be placed, so it depends on the amount of change being done. tell the lender to send you the plans. i suppose you could amend that check box on the addendum with your specific comment, if you get tired of banging your head.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
4000.1 Handbook 203-K If a Mortgagee requires both an as-is and an after-improved value of the Property, the case will require two separate appraisal assignments and reports:
 an analysis to provide the as-is value; and
 a separate analysis performed under the hypothetical condition that the repairs have
been completed.
 

Kitarkus

Junior Member
Joined
Nov 15, 2006
Professional Status
Certified Residential Appraiser
State
Kansas
4000.1 Handbook 203-K If a Mortgagee requires both an as-is and an after-improved value of the Property, the case will require two separate appraisal assignments and reports:
 an analysis to provide the as-is value; and
 a separate analysis performed under the hypothetical condition that the repairs have
been completed.

I'm not sure this is relevant. The OP is dissatisfied with the information that he'd been provided by his Client and he feels it was a "repair bid quote" and not detailed plans/specs.

To ther OP: I'm not certain why you feel that it is necessary to check the repair box? This is a 203k assignment. If you feel that the provided documentation and level of detail which has been provided to you relating to proposed modifications to the Subject property is insufficient.....then ask for them to provide you better documentation. You didn't really give me enough information to understand your dilemma.

If the proposed repairs/updates/modifications are relatively minor....why do you care which box is checked?
If the proposed repairs/modifications/updates are major and you were not provided adequate descriptions and detail....then ask for it.
Either way.....obtain whatever additional information about the proposed work to be performed which allows you to feel comfortable in checking the subject to plans/specs box.

Respectfuly,

Kit
 
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