"as Is" Appraisal For Subject With Known Foundation Issues

[phialpha]

The comparable sales are similar in age and all are REO's, and I'm struggling with how to account for the known foundation problems with the subject (I have copies of repair estimates which are similar). I apologize in advance if anyone takes offense to my question, but I think I'm brain dead (I need a vacation).

 

[hastalavista]

If you have repair estimates that you consider reliable, then you have a basis for determining the market reaction to the foundation issue, no? (I'm assuming the assignment requires an as-is value)

 

[phialpha]

If you have repair estimates that you consider reliable, then you have a basis for determining the market reaction to the foundation issue, no? (I'm assuming the assignment requires an as-is value)

yes, but I would be making across the board adjustments since the foundation condition is unknown for comparable sales (and maybe inaccurate if any of the comparable sales also have foundation damage which would be unknown to me?)

 

[hastalavista]

yes, but I would be making across the board adjustments since the foundation condition is unknown for comparable sales (and maybe inaccurate if any of the comparable sales also have foundation damage which would be unknown to me?)

Foundation issues are not prevalent as a rule. Do you think it is more likely to find a comparable with a foundation issue than one without?
I think it is more likely to find comparables without foundation issues (unless you live in earthquake country and there has been a recent earthquake).

I can appreciate your desire to find a comparable with a similar condition. Some features cannot be matched. Especially atypical condition or floor plan/alteration configurations.
In the absence of similar sales with similar foundation issues, your scenario is one of the best reasons why there will be across-the-board adjustments in the grid. In fact, I would say that should be the expectation.

As to your other sales, have you considered calling those agents/brokers involved and asking them if they had any foundation issues?

 

[Mark K]

yes, but I would be making across the board adjustments since the foundation condition is unknown for comparable sales (and maybe inaccurate if any of the comparable sales also have foundation damage which would be unknown to me?)

Unless you know or have reason to think that foundation problems are prevalent and typical for your area, across the board adjustments are probably warranted.

 

[phialpha]

Unless you know or have reason to think that foundation problems are prevalent and typical for your area, across the board adjustments are probably warranted.

Thank you for your responses, I feel better now. So, as long as I adequately explain the necessity of the across the board adjustments, that is acceptable. I was uncomfortable with that since this is the first situation like this that I have encountered in my long, 3 year career.
And thanks for the suggestion re: contacting listing agents. I do that on a regular basis, but I had no luck with those inquiries on this one unfortunately.

 

[Meandering]

The comparable sales are similar in age and all are REO's, and I'm struggling with how to account for the known foundation problems with the subject (I have copies of repair estimates which are similar). I apologize in advance if anyone takes offense to my question, but I think I'm brain dead (I need a vacation).

Why are all these GPS showing up asking appraisal questions?

Where is the license verification process that used to be part of the forum?

.

 

[bnmappraisal]

As to your other sales, have you considered calling those agents/brokers involved and asking them if they had any foundation issues?

worth repeating, especially in this situation. This type of issue (foundation issues) sounds somewhat unique, so I think you'll want to make SURE you "dot your i's and cross your t's" regarding your comps and the verification of the information regarding these comps. I'd make calls until you talked with the agent to verify, even if it delays your report. Just update your client regarding the situation; I'm sure they'll understand

 

[Tom D]

i did a driveby big city pre REO of a semi-det home. much to my surpise the dwelling was boarded by the city with a BIG danger sign on the front door. that's nothing big, but coming from the right hand corner of the 1st level, on the non shared side was a small tree. now that had to come from the living room? it had to be more than several years old. it separated part of the front wall from the non sharing side wall at the corner. try as hard as i could, i could not find a similar comp. a lot of extraordinary comments on what the problems/costs could be. kinda a 'oh wow' day to remember.
one tough little tree.

 

[Howard Klahr]

Foundation issues are not prevalent as a rule.

That's not exactly correct in Texas. Expansive clay soils very common.