"AS IS" appraisal & cost to cure?

[Oregon Doug]

I'm looking at an appraisal (I've looked at the house, too) of a little (87 yr) old house that is "showing its age" (typical of houses in this little town). The client requested an "as is" appraisal. The appraiser did a pretty good "as is" appraisal that noted the age related short commings and applied a "condition" adjustment on the SCA grid (with supportive comments).

Now the client has requested a "cost to cure" the short commings noted in the report.

I'm behind the appraiser on this one. The appraisal is "AS IS" (per clitnt' request), not "subject to" - So, how can there be any "cost to cure" what is "as is"?

Opinions, please (maybe I need to talk to Bill on this to find out what his deffinition of "is" is).
Oregon Doug

 

[Christine Marie]

Oregon Doug, please elaborate on the "short comings", for further clarification... might help a tad more....

 

[Oregon Doug]

Short commings = shabby paint, worn carpet/vinyl, no landscaping (dog in rear yard), unkempt yard (debris....), attic conversion (no heat, excluded as living space but included as finished attic space). No specific health/safety violations known, but just generally run down little old house in a small town full of 'em.

One of his comps was in "good" condition (appraiser applied adjustment), two were in "average", like the subject (no adjustment applied). I'm thinking any "cost to cure" ought to reflect the condition adjustment - but that would make the appraisal "subject to".

Oregon Doug

 

[Christine Marie]

I'm thinking any "cost to cure" ought to reflect the condition adjustment - but that would make the appraisal "subject to".

Oregon Doug

going out on a limb here, it can still be 'as is', even with a cost to cure, this is most likely a refi [reading between the lines], and presuming, the lender wants to know more specifics as related to marketbility, and to more accurately have a depiction of what it would cost to bring the property to market standards,

The appraiser has estimated the cost to cure items of deferred maintenance observed by the appraiser, and noted in the Addendum. The estimates of a cost to cure are for the sole purpose of assisting the appraiser in forming an opinion of market value based on the subject property condition, observed by the appraiser at the time of inspection. No one should rely on the estimated cost to cure for any other purpose, and does so at their own risk. The appraiser is not a licensed contractor. Only a licensed contractor can give a definitive estimate of repair costs. It is also noted that the appraiser's observation does not include those items which may need repair and that were not observed by the appraiser. The appraiser makes no warranties, either express or implied, that the estimated cost to cure includes all items that may be deficient or in need of repair.

 

[Pamela Crowley (Florida)]

They ordered "As Is", they get just that and no, the Cost to Cure is NOT part of an "As Is" appraisal.

 

[Christine Marie]

limb broke....

 

[Artemis Fowl]

What about cost to cure with CB4? (not Doug's particular...just in general)

 

[nanzilla]

The appraiser has estimated the cost to cure items of deferred maintenance observed by the appraiser, and noted in the Addendum. The estimates of a cost to cure are for the sole purpose of assisting the appraiser in forming an opinion of market value based on the subject property condition, observed by the appraiser at the time of inspection. No one should rely on the estimated cost to cure for any other purpose, and does so at their own risk. The appraiser is not a licensed contractor. Only a licensed contractor can give a definitive estimate of repair costs. It is also noted that the appraiser's observation does not include those items which may need repair and that were not observed by the appraiser. The appraiser makes no warranties, either express or implied, that the estimated cost to cure includes all items that may be deficient or in need of repair.

Good verbage. Ok to borrow?

 

[Pamela Crowley (Florida)]

That is good verbiage.

But, Dougs question is whether or not a CTC is necessary on an "As Is" appraisal and report.

No, it is not. If they want a CTC, they can ask for that ahead of time or pay for it if they want it after the fact.

 

[Fred]

Now the client has requested a "cost to cure" the short commings noted in the report

As you frame the request here, I don't see what difference it makes how the other guy appraised it; or whether there was an appraisal at all. The cost to cure is the cost to cure. That could be an assignment by itself without reference to any market value estimate.

the Cost to Cure is NOT part of an "As Is" appraisal.

Disagree!