AMC demand..

[Bill_FL]

I have a friend who got an order from an AMC, gets to the house, its 90 years old and falling apart, roof sagging bad, tail rafters have tons of rot, floors bounce bad as you walk through the house, etc. Notifies the AMC, their response, do it as repaired and include a breakdown of the costs to repair. His response, was, there needs to be a contractor/home inspector look at this property, I am not qualified to figure out everything that is wrong with it. The contractor could give a better estimate of the costs to repair it.

AMC's response? Just do it or we will just reassign this to someone who can.


I told him, no, they will reassign it to someone who will.

 

[Mike Kennedy]

ask yur friend to send the ADDY n order to Pamela Crowley.

 

[Larboard]

I guess I'm missing something. Why didn't the appraiser just complete the assignment. He can make it subject to whatever inspections/repairs he wants. Someone wants his professional opinion of the value of the property. Why not just give it and get paid?

 

[Evincere]

I

AMC's response? Just do it or we will just reassign this to someone who can.


I told him, no, they will reassign it to someone who will.

Huge distinction.

 

[Annemieke Roell]

I guess I'm missing something. Why didn't the appraiser just complete the assignment. He can make it subject to whatever inspections/repairs he wants. Someone wants his professional opinion of the value of the property. Why not just give it and get paid?

They also want a "cost to cure". And when a property is in disrepair as described, there ma be all kinds of structural problems with it which, unless ou were a contractor in a previous professional life, is a tricky thing to determine and cost out.

Under different circumstances I would appraise it "subject to" an inspection and quote by a licensed contractor, but as I understand it the AMC want a list of repairs and cost to cure.

That open up a whole big can of liability worms, not to mention a ton of extra work which I doubt they will pay for.

While I rarely walk away from a challenge, this is an assignment I would turn down.

 

[Bill_FL]

I just found out that the contract has a dollar limit to the amount of repairs, or the buyer can walk. I told him to contact the buyer's agent and get a copy of the estimate of repairs for that contingency.

Now, my guess is the buyer's agent will say something like, well, that is why we are having it appraised, for you to tell us.

 

[Ross (CO)]

Just one more blaring example of the absolute absurdity and overwhelming nonsense of the cost-to-cure MANIA which pervades the thinking of TOO many such clients ! A 90-yr-old structure in FL, with wood rot and a failing roof, with sagging and bouncing floors.....and they expect someone to actually CORRECT and FIX that sort of long-life condition ? ! .....And, someone is about to buy that place ? What idiot buyer does not already have their own knowledge, nor realty-agent and contractor-friend support, to have a strong gut-feeling about a general amount of money to "fix" that place ?

There are (were) about 4 options :
1) KNOW at the start that a C2C for a 90-yr-old house with possible problems would BE necessary and a likely component within the total S.o.W.
2) Accept the assignment knowing that......or decline it.
3) Complete the report and employ a CB3 or CB4 designation, stating what the REAL issues are with the property and providing ample pictures......so that the client about to LEND on a 90-yr-old house with likely problems would NOT be forwarding on to Fannie......a house with problems.....or
4) Complete the report as-is and using VERY similar comps of equal age and condition......and let the value opinion fall right where it should fall.....in a window-of-comparison against other LIKE properties in that immediate market.......and state how a C2C for such an aged and worn-out property is an exercise in futility.

But, then, I do not usually have any suggestions worth their salt.....I just type for the keyboard practice.

 

[Mountain Man]

I see several problems here. 1. The AMC is wants work that is outside the original scope of work for free! 2. Everyone is waiting to see how the contract contingency will play out, but are not willing to pay a few hundred bucks for a proper inspection & cost. 3. YOU have the E&O.

Appraiser.... scapegoat.

 

[T.E. Faravelli]

Bill,

This type of response is typical. It is worth mentioning that an appraiser who would agree to it should at the minimum be a GC, CCI or preferably a PE. The liability incurred can be tremendous and the E&O policy may not cover acts deemed to be beyond the scope or expertise of an appraiser. Our firm offers such services as we have PE/GC's/Architect on staff. It is amusing to watch the reaction of a mortgage originator when they receive the quote.

 

[Couch Potato]

As someone who was previously a contractor, I could do such an assignment; but I doubt the AMC would want to pay my fee. Sounds like the first step to curing the problems is order the bulldozer.