Appraiser "Recommendations" ?

[ZZGAMAZZ]

Easy out. Stick to how you typically do it and don't "recommend" any repairs. If there is something that requires a "subject to" it is what it is

That reminds me bout something I forgot to ask... Haven't inspected interior yet but being told that HVAC system is inoperable per home inspection and pending further testing. FAU/Central is neighborhood standard. Would HVAC functionality be a Subject To condition????

 

[TerryRohrer]

That reminds me bout something I forgot to ask... Haven't inspected interior yet but being told that HVAC system is inoperable per home inspection and pending further testing. FAU/Central is neighborhood standard. Would HVAC functionality be a Subject To condition????

If there were no HVAC system, would there be an issue?

 

[ZZGAMAZZ]

If there were no HVAC system, would there be an issue?

Hmmm. Very interesting. The status would fail to reflect current local market standards, presumably not Subject To as per the conventional scenario [but possibly Subject To in FHA context because Marketability and Liveability would be compromised, with a potential C2C of 2% of the market value. But, yeah, No not Subject To. Another new thinking aide courtesy of the AF.

 

[Dublin ohio]

Hmmm. Very interesting. The status would fail to reflect current local market standards, presumably not Subject To as per the conventional scenario [but possibly Subject To in FHA context because Marketability and Liveability would be compromised, with a potential C2C of 2% of the market value. But, yeah, No not Subject To. Another new thinking aide courtesy of the AF.

If it is in an area that requires heating. With no heat would it have finished above grade area? AKA GLA per Fannie

 

[Fernando]

Sounds like appraiser opening itself to liability.
If appraiser doesn't mention about a repair, appraiser is incompetent in his observation of subject.

 

[ZZGAMAZZ]

Sounds like appraiser opening itself to liability.
If appraiser doesn't mention about a repair, appraiser is incompetent in his observation of subject.

At hand is decision whether to require the currently-unknown problem to be resolved as a "subject to" condition, or whether to just describe its existence with a corresponding C2C--an entirely different challenge based upon a range of potential necc repairs from $150 to $15,000...

 

[Fernando]

At hand is decision whether to require the currently-unknown problem to be resolved as a "subject to" condition, or whether to just describe its existence with a corresponding C2C--an entirely different challenge based upon a range of potential necc repairs from $150 to $15,000...

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.

 

[sputnam]

Doesn't seem as if the way the contract was worded is an appraisal issue. You have to review and analyze the contract... and include a summary the results of your analysis ion the appraisal report. The terms of the contract have nothing to do with how you determine the opinion of value. It's not your problem.

 

[ZZGAMAZZ]

Doesn't seem as if the way the contract was worded is an appraisal issue. You have to review and analyze the contract... and include a summary the results of your analysis ion the appraisal report. The terms of the contract have nothing to do with how you determine the opinion of value. It's not your problem.

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."]

 

[ZZGAMAZZ]

Doesn't seem as if the way the contract was worded is an appraisal issue. You have to review and analyze the contract... and include a summary the results of your analysis ion the appraisal report. The terms of the contract have nothing to do with how you determine the opinion of value. It's not your problem.

Two values were ordered: market value, market rent, the client conditioning the report only by asking if all 3 units can be legally rented-- possibly to determine borrower ability to satisfy repayment of pending loan. OTOH I dont know if a rental analysis can include rental income from a unit that cant be legally rented, or how te Form 216 embedded instructions apply to the sceenario... or whether market activity trumps jurisdictional authority especially when sufficient data [even by proxy] isn't available...