A request for subject to appraisal.

[Larry Lyke]

j--

You've got your repro costs and costs to cure and the market all blended together.

 

[aprazer]

I did one of these a few months ago, and I looked at USPAP and what requirements there are for this. You must state this is a hypothetical situation, you must have plans, specs, a cost estimate(by contractor not your estimate), and an estimated time table-start and completion dates.

 

[Restrain]

Just a suggestion: I would put a disclaimer that failure to complete the work in a workman-like manner once begun may significantly adversely affect the value estimate. I've seen a lot of "Subject to" appraisals where, say, the kitchen was to be remodeled, then they stop with all the cabinets torn out leaving a blank space where the kitchen WAS. At that point, it will cost more to repair it than if it had been done right the first time.

 

[moh malekpour]

I did one of these a few months ago, and I looked at USPAP and what requirements there are for this. You must state this is a hypothetical situation, you must have plans, specs, a cost estimate(by contractor not your estimate), and an estimated time table-start and completion dates.

When you check mark the subject to box, you already hypthesizing the appraisal report based on whatever condition you put in the report. The USPAP emphasises on the hypothetical but I did not see plans, specs or cost estimate by contractor in the USPAP, where did you read that phrase? I would like somebody make a comparison between an appraisal for FHA loan and an appraisal for a subject to conventional loan. HUD is very restricted about USPAP guidelines and doesn't ask appraisers to get plans, specs or contractor estimated cost for regular appraisals unless the property is new construction or the loan is 203-K.
HUD has VC sheets but this is just an standard condition sheet that you can put these conditions in URAR form for conventional loans. What is the difference between these two diffent loans regarding the subject to?