Appraiser "Recommendations" ?

[J Grant]

Agreed. However would you tend to mention the apparrent disconnect in your contract analysis because the client eventually will need to reconcile contract and appraisal on behalf of borrower [or brokers or Title lawyers or judge or whichever entity might need to define "recommended."]

Lender clients do not reconcile contracts and appraisals on behalf of anyone.

The lender needs to make a loan decision, based in part on the borrower and in part on the property. The appraisal is a tool for the lender to make a loan decision about the property.

The contract is between the parties.

 

[Sadie]

Correct, but would this not be discussed / analyzed during the purchase contract analysis? It is something that I would seek clarification on the then disclose this in the analysis.

Of course it needs to be discussed, which means you have to complete at least the inspection with all the usual "I am not a home inspector" caveats before you can. I might include a blurb about the property meeting the condition requirements for whichever secondary market participant you have0- fannie, freddi, HUD etc.

 

[chad hampton]

You simply analyze the contract, it’s not part of your engagement and it’s certainly nothing that you have to agree to as part of the assignment. But since you saw it in the contract, I would put a comment in my report that said the appraiser recommends a home inspection from a qualified home inspector.

 

[Fernando]

"Property to be sold as is. Seller will only make repairs recommended by the appraiser."

I think I may use that comment on my next purchase contract.
Good to buy as is but really an advantage for buyer in getting more possible concessions.

 

[ZZGAMAZZ]

Again appraisers are not home inspectors. By not mentioning a repair which could be major, appraiser will be partly responsible in the eyes of the buyer.

Whadda you going to do, ignore it? One can't un-learn something they learn about.

 

[ZZGAMAZZ]

You simply analyze the contract, it’s not part of your engagement and it’s certainly nothing that you have to agree to as part of the assignment. But since you saw it in the contract, I would put a comment in my report that said the appraiser recommends a home inspection from a qualified home inspector.

Hmmmmm. Home inspection aleady done but to recommend it seems within the Scope of Work. Hmmmm.

One last question: Because the appraiser's "Subject To" conditions are subject to the final decision by underwriting [as far as I am aware], would the appraiser's "Subject To conditions be defined as a recommendation????

 

[Fernando]

Appraiser is put in a difficult position. Appraiser has to tread carefully in what to comment in regard to repairs.
To protect myself, I would request to see a home inspection report to understand the condition of subject.

 

[chad hampton]

Hmmmmm. Home inspection aleady done but to recommend it seems within the Scope of Work. Hmmmm.

One last question: Because the appraiser's "Subject To" conditions are subject to the final decision by underwriting [as far as I am aware], would the appraiser's "Subject To conditions be defined as a recommendation????

My bad, i didn't read all the posts. If you know the HVAC isn't working, Id make to subject to the hvac working.

 

[Fernando]

My bad, i didn't read all the posts. If you know the HVAC isn't working, Id make to subject to the hvac working.

Unless it's a FHA appraisal, I never turn on HVAC to check if working. That's why I charge more for FHA appraisals because they require so much effort.