Additional Roof Disclosure Question

[Queen Bee]

This is in addition to my original roof disclosure question…

Great advice- Thank you. One more question though... all of my comparables are similar in age and none appear to have newer roofs. If the subject and comparables have roofs that are similar in age and condition, there would be no need for an adjustment. In this case would you still recommend doing the appraisal "subject to..." or can it be done "as is" and state what I was told by the roofing technician regarding the condition of the subject’s roof?


Original Question:
I have an order for a purchase with a conventional loan. The home is vacant and when I arrived at the home to do the inspection, a gentleman from a roofing company was there inspecting the roof at the request of the buyer. It was a two story home and from what I could see it did not appear to be in bad shape at all (of course I am not a roofing expert). I asked him what he thought of the condition of the roof and he said that it was not in good shape and needs to be replaced. Since I would not have known that it was not in good shape based on what I could see of it, do I need to mention this in my report because the roofer did indicate that in his opinion it needs to be replaced? Also, should I make a condition adjustment for the roof?

 

[Mztk1]

Personally, I would not do the appraisal "subject to" a new roof in the first place.

Like I stated on the first board, for reasons similar to what you are talking about and others, I'd state what the roofer said and then that I am making the extaordinary assumption that the roof has at least 2 years remaining economic life. My value opinion would be "as is" value, but the report would be subject to an inspection by a qualified roofer. The lender can send a roofer of their choice, use the one you mentioned, or ignore the problem all together, it is up to them. But the value you are providing is based on the "as is" condition of the property.

In the area where you check "As-is" or "Subject to" at the end of the second page, simply check the 4th box, which is subject to a professional inspection, and write in the blank space after it that you have made the extraordinary assumption that the roof has at least 2 years remaining economic life and the report is made subject to the roof being inspected by a qualified professional. Once you do that, you are done.

 

[Edward OConor]

I agree with Jim.

I would also state that at the time of the inspection there was no evidence that the roof was currently leaking (if it's true).

I would be wary that it could be a ploy to renegotiate the sales price