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Are There Any Physical Deficiencies Or Adverse Conditions (pg1) Frequency

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Valueseeker

Junior Member
Joined
May 19, 2016
Professional Status
Certified Residential Appraiser
State
Massachusetts
"Are There Any Physical Deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property"

Hello Folks.

TOTALLY subjective to the line of work you predominantly do and the area you cover however....
How often do you check this box and for what reasons?

The reason I ask is that I check it almost at 1 - 2 % of the time and I wanted to check the board here to see what the veterans do and for what reasons. I dont want to be too lax on it but I certainly dont want to start pissing off lenders.

Thanks in advance guys.
 

Tom Woolford

Elite Member
Joined
Nov 20, 2005
Professional Status
Certified Residential Appraiser
State
Florida
The reasons are as different as the houses, but electrical is probably the most common. GFCI's that don't work, exposed wiring inside and out, switches that don't work etc. Poor water pressure. non-functional plumbing. You name it. Probably 25% I kick out usually because of owner "improvements".
 

Valueseeker

Junior Member
Joined
May 19, 2016
Professional Status
Certified Residential Appraiser
State
Massachusetts
25% of your overall submitted appraisals? Thank you for your input :)
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
I hardly check it, but that's b/c I've been dealing with pretty decent properties; a lot of purchase orders still in my area. These properties usually have had a home inspection already so any issues there may have been, have already been addressed when I see a property.

I would guess I check that box on less than 5% of the properties I do in a year.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
Hardly ever unless it's a major physical deficiency that can't be repaired or corrected at a reasonable cost like a C-5 or C-6 or Q5-Q6 construction. I find most issues are repairable so I make the report subject to repair or inspection. Adverse conditions rarely but once in about every 300 appraisals. As far as pissing off lenders YES because checking that box indicates the property has serious problems that make it poor collateral and if the issues cannot be cured the loan is dead on arrival. In my opinion the easy test is "Curable or Not curable" at a reasonable cost.
 
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Marty Boone

Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Do you check the "Are There Any Physical Deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property" box when you complete the report subject to the repair of something that affects the livability, soundness, or structural integrity of the property"? Ex. as is C5, but subject to repair C4 do you check the box?
 

Valueseeker

Junior Member
Joined
May 19, 2016
Professional Status
Certified Residential Appraiser
State
Massachusetts
Do you check the "Are There Any Physical Deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property" box when you complete the report subject to the repair of something that affects the livability, soundness, or structural integrity of the property"? Ex. as is C5, but subject to repair C4 do you check the box?
Thats basically only when I use it.,,,but as mentioned by Tom, I am wondering if I am just too lax and should be checking that on a nice house with (lets say) exposed electrical. I guess that is an adverse condition that affects the livability in a way. Or lets say the house is situated on a cliff/ravine. The adverse condition would be the potential person falling off the cliff/ravine (?)

I just want to make sure I dont check that box more(or less) than the next guy. I hope you all understand. It to me is subjective in what YOU perceive as adverse to livability. Is there any place that references what would be or wouldnt be considered?

Thanks again.
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
Or lets say the house is situated on a cliff/ravine. The adverse condition would be the potential person falling off the cliff/ravine (?)
I would disagree in this case b/c that is an external force/situation. Now a sinkhole? If you have knowledge of an active sinkhole under the subject dwelling, THIS I would mark YES and disclose because this could have an adverse affect on the structural soundness of the property
 
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