Vic Stanionis
Sophomore Member
- Joined
- Oct 15, 2003
- Professional Status
- Certified Residential Appraiser
- State
- New York
I have an urgent question that needs to be answered by senior appraiser's on this Forum. Thanks in advance for your insight, and replies.
First let me give you some background, the subject an expanded cape built in 1949, aluminum sided, concrete block construction, is in C5 condition (due to deferred / lack of routine maintenance, upkeep, general repair, etc. with a semi-modern kitchen (suffers from excessive wear and tear from pets), dated half bath, partially updated master bath (w/ marble tiling) but dated sink topped vanity, and partially updated hall full bath with fixtures that were updated several years ago (10+yrs) but retained semi-modern ceramic tiles (dark green), plus there was a flood years ago in the partially finished walkup basement w/ a wet bar (all surfaces were affected, and most finishes were removed, hanging wires (not secured), etc. There was an addition added in the '70s, expanding the master bedroom, master bath (.75 shower only), and enlarged dining room/kitchen area and there is an attached two car garage and one car port. Note the lender/client provided appraiser with an estimate from a general contractor, (extensive list), for a total of $81,000 (which this appraisal report is relying on for 'cost estimates' for these repairs)..
Here is a short list of the repairs needed:
This addition has a flat roof in need of repair, nearing end of its useful life, pitched roof appears average condition.
New furnace to be installed, kitchen updated/refinished, update the baths (first floor hall full bath, and second floor hall half bath (new tile), hardwood floors refinished throughout, install new carpeting in the three upstairs bedrooms, hallway, walk in closet, remove wallpaper, repaint(interior/exterior (pressure wash as needed), Two windows were broken need to be replaced, replace shutters, renovation of the former partially finished walk up basement with a former wet bar, and repair/replacement of number of garage doors, ceiling and drop stairs to storage attic above garage, exterior amenities (decks, shed, fencing), trim over grown vegetation/shrubs/trees.
I've made this report 'subject to' :
This appraisal report is made 'subject to' the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed. Referring to the provided contractor's estimate for the complete list of repairs to be performed.
The lender is asking me for revision, and further explanation on this report:
"Since the subject is being appraised “subject to” please reflect what the subject’s condition rating would be after the needed repairs have been completed in the market grid with an after improved appraised value (instead of the condition that the subject is in currently). "
Should the condition on the 1004 grid and in the market approach addendum for the subject show the current 'as is' C5 condition or should it reflect the after repaired condition of possibly C3 or C4, however the appraiser would have to inspect the completed work to see the extent and overall condition of the subject has changed significantly to raise it beyond a C3. I just don't think its wise to provide an after repaired condition since as the appraiser I'm not sure what it will eventually be, without seeing the quality of the renovation/updating being performed. Should I comply with their request for an after improved appraised value, (instead of the 'as is' condition the subject is currently in)?
Will a separate addendum or form be required to be included in the revised 1004, showing the after repaired value estimate or if its determined to be necessary should I just include it within the Final Reconciliation section.
I'm a bit confused and would like this to be clarified for me, because there are so many repairs/updates/deffered general maintenance issues with the subject that I want to be sure I get this right, so I won't have to readdress it
again later. Thank you.
Regards,
Vic Stanionis
First let me give you some background, the subject an expanded cape built in 1949, aluminum sided, concrete block construction, is in C5 condition (due to deferred / lack of routine maintenance, upkeep, general repair, etc. with a semi-modern kitchen (suffers from excessive wear and tear from pets), dated half bath, partially updated master bath (w/ marble tiling) but dated sink topped vanity, and partially updated hall full bath with fixtures that were updated several years ago (10+yrs) but retained semi-modern ceramic tiles (dark green), plus there was a flood years ago in the partially finished walkup basement w/ a wet bar (all surfaces were affected, and most finishes were removed, hanging wires (not secured), etc. There was an addition added in the '70s, expanding the master bedroom, master bath (.75 shower only), and enlarged dining room/kitchen area and there is an attached two car garage and one car port. Note the lender/client provided appraiser with an estimate from a general contractor, (extensive list), for a total of $81,000 (which this appraisal report is relying on for 'cost estimates' for these repairs)..
Here is a short list of the repairs needed:
This addition has a flat roof in need of repair, nearing end of its useful life, pitched roof appears average condition.
New furnace to be installed, kitchen updated/refinished, update the baths (first floor hall full bath, and second floor hall half bath (new tile), hardwood floors refinished throughout, install new carpeting in the three upstairs bedrooms, hallway, walk in closet, remove wallpaper, repaint(interior/exterior (pressure wash as needed), Two windows were broken need to be replaced, replace shutters, renovation of the former partially finished walk up basement with a former wet bar, and repair/replacement of number of garage doors, ceiling and drop stairs to storage attic above garage, exterior amenities (decks, shed, fencing), trim over grown vegetation/shrubs/trees.
I've made this report 'subject to' :
This appraisal report is made 'subject to' the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed. Referring to the provided contractor's estimate for the complete list of repairs to be performed.
The lender is asking me for revision, and further explanation on this report:
"Since the subject is being appraised “subject to” please reflect what the subject’s condition rating would be after the needed repairs have been completed in the market grid with an after improved appraised value (instead of the condition that the subject is in currently). "
Should the condition on the 1004 grid and in the market approach addendum for the subject show the current 'as is' C5 condition or should it reflect the after repaired condition of possibly C3 or C4, however the appraiser would have to inspect the completed work to see the extent and overall condition of the subject has changed significantly to raise it beyond a C3. I just don't think its wise to provide an after repaired condition since as the appraiser I'm not sure what it will eventually be, without seeing the quality of the renovation/updating being performed. Should I comply with their request for an after improved appraised value, (instead of the 'as is' condition the subject is currently in)?
Will a separate addendum or form be required to be included in the revised 1004, showing the after repaired value estimate or if its determined to be necessary should I just include it within the Final Reconciliation section.
I'm a bit confused and would like this to be clarified for me, because there are so many repairs/updates/deffered general maintenance issues with the subject that I want to be sure I get this right, so I won't have to readdress it
again later. Thank you.
Regards,
Vic Stanionis