2055 Interior Question

[Mark McDonald]

Homeowner contracted HomeDepot to install granite countertops and new cabinets.
Homeowner is not happy with the quality and workmanship (polish, cuts,large gaps between counter and walls & cabinetry ). Work is at a standstill while owner is suing countertop installer, who happenned to be unlicensed ( He did not show up to his first court appearance ). Some cabinets are not installed as they rest on the countertop and cannot be installed until work is completed.

Besides stating the facts, what else do I need to do on this report (2055).

Thanks in advance.

 

[Jungle Boy]

The 2055 doesn't ask for that, so don't tell.

Hey, with the 2055, it really makes no difference whether it's a driveby or interior inspection. B)


All kidding aside, I would estimate a cost to cure.


BTW, if it's a Home Depot installation, they will make it right for the HO.
The HO will not need to take the installer to court, as HD is responsible for the work performed.
I ran 6 crews of floor covering installers when I had the local HD contract for ceramic tile installation in Palm Beach County back in the early 90's, and know first hand that HD bends over backwards to keep their customers happy.

 

[Mountain Man]

First, call the client. Some lenders won't escrow for work to be done. Then proceed with either a cost to cure, or subject to completion.

 

[Mike Boyd]

Do it subject to....or deduct for cost to cure. I would opt for subject to.

Mike

 

[Mark McDonald]

So I would do market value subject to work completed or market value, minus the adjustment for cost to cure, right?

Thanks guys.

 

[Pat Butler]

Ask you client how they would like for you to proceed. It's their decision. Personally, I might not even mention it if the client is only paying for a 2055. After all, the form doesn't have any area to comment on condition, so the client obviously doesn't care. Also, any prospective purchaser of the subject property would have the option of putting in their own, inexpensive, counter tops. Might not be that expensive and might not measurably affect market value.

 

[DB]

But ..... (there's always a but ...) we have previously discussed that it is us ... the appraisers .... who decide what the client needs in order to accurately reflect the value of the property ..... I would call them ... tell them that this property will require a 1004 and proceed with confidence .... you are charging the same for a 2055 interior as you are for a 1004 anyway ... right??

 

[Mountain Man]

So I would do market value subject to work completed or market value, minus the adjustment for cost to cure, right?

Yeah, either one... which ever one the clients wants. But I think most will want it subject to, and get you to do a final.

 

[kim grant]

Mark,

You can call your client for direction if you wish but I would be prepared to answer this question:

"How does this condition affect the marketability of the property?"

That is the bottom line. I generally do not call the client for advice/direction I make the decision based on what the market data is telling me.

I find sales that have similar or offsetting problems and apply the market recognition to my analysis. Simple.


Why do you people on this board think the 2055 automatically means "less" of a job. I see all these comments about converting to a 1004, for what? A bigger fee? Appraising to the form are we???? C'mon people.

--Kim :blueflower:

 

[DB]

Most folks on this board charge the same for 2055 as they do for a 1004 .. same liability ... some do it cheaper, but only because it is perceived that there is less work involved ....personally, I do not ... have not.... and will not appraise to a form .... the form is only the reporting mechanism .... the appraisal takes place long before anything starts hitting paper .... that is why I charge the same ....