• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

"as is" not accepted by UW

Status
Not open for further replies.

Suzanne K Hansen

Sophomore Member
Joined
Aug 31, 2002
Dear All,

I appraised a small house in December in a very hot area where revitalization is in full swing and sales prices are jumping due to desirability of the area. The homeowner was remodeling his kitchen and had plans for numerous upgrades and changes. The appraisal was "as is" since the kitchen was nearly done and any other upgrades were wishes/ ideas that could not be documented by actual plans. Of course, I had to say what the kitchen's condition was. And that the value was based on the property's "as is" condition, which was still pretty good.

The UW asked me to go back and document the kitchen remodeling with pictures and a text addendum plus state what the planned remodeling was. I did that.

Today the UW says that the loan won't go forward until all of the planned remodeling is complete and that the appraisal should be remarked as "subject to" and I should document when these projects have been completed.

My response was that the appraisal was completed as an "as is" appraisal which meant that it was "valued" based on the condition it was in on the day of the inspection. Any further documentation of upgrades, completions of upgrades to the home make the appraisal inaccurate as the appraisal was based on the condition at the time of the original inspection.

What else can I do to deal with this?

PS. I'm not dealing with the UW directly, I'm dealing with the Mortgage Broker's Processor who speaks to the UW.

Suzanne
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
:lol: ask to speak to the underwriter :idea:

which may or may not work.

or write a new appraisal :evil: .
 

Verne Hebert

Senior Member
Joined
Feb 25, 2002
Professional Status
Certified General Appraiser
State
Montana
I think I'd try to talk to the UW and see if you can assist in the transaction-but only the mortgage company knows the product they are processing.

Hold-backs for non-completed items are almost non-existent anymore...........after a continued phaseout over the past two years.

Likely they would have to look at a subprime loan as a product.............But Hey! Not my job, mon.
 
A

Anonymous

Guest
Talk to the underwriter directly. I have found that many of these people do not understand the appraisal process, the only know how to shuffle paper.
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
You can certainly do it subject to and then complete a final inspection when its done. Ask for plans and specs if there are any. Lee Ann gave you good advice about talking to the UW. Some will talk to you & others won't. Why an UW wouldn't talk to an appraiser is beyond me. BTW charge plenty for all of your extra effert.
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Suzanne K Hansen,

So my understanding is that you only discussed what the current state of the house was in. Personally if I find some items like an imcomplete kitchen I will take a picture(s)(as many as it takes) of it write it up and include the picture(s) and write up in the report. As well as a detailed "cost to cure" opinion as provided by M&S home repair and remodel. This does not entirely take away any potential problems but it does stop any future questions. Sometimes it goes sometimes it does not. Depending on the UW and their state of mind at the time. As far as any future problems I would suggest taking picture(s) of any problems or good parts.

Ryan
 

Suzanne K Hansen

Sophomore Member
Joined
Aug 31, 2002
RYAN,

Good thoughts for the next time. The addendum I provided did contain the pictures, and discussion but not the cost to cure as I did not feel there was defferred maintenence in this case.

If I'd done that up front, it might have forstalled things or just begged the question. It was a judgement call.

That said, the amendment did not deter the UW from coming back and asking for the owner's pipedream improvements to be completed.

I'm waiting to hear from the broker to find out whether she herself has approached the UW about this issue.
 

Randy Beigh

Senior Member
Joined
Jan 16, 2002
Suzanne

Some good thoughts from the others.

When I encounter a house that is incomplete, it is time to call the customer and find out what they want. It's their appraisal and they have the option of subject to or as is. Had you done that, you wouldn't, likely, be in this mess now.

If they, now want the appraisal subject to, I would do so. Otherwise, this thing will suck up your time for no gain in the end.

Good luck
 

Pine Tree

Junior Member
Joined
Aug 19, 2002
Professional Status
Certified Residential Appraiser
State
Maine
Hi Susan,

This seems to be a case of Who Moved the Cheese!

It can be frustrating, and just when you think you have the hang of it they change what they want.. It seems to me that a new report would be necessary if they want to include different improvements. And of course the homeowner needs to turn his dreams into actual plans and specs..

Just when you thought it was all about the value. Right!
Don't let it suck the life out of you.
Peace Wendy
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
Suzanne ~

Yeah, so you screwed up. Simply do what is necessary to get yourself out of this situation as quickly as possible so the UW and LOs won't remember you as the 'appraiser who couldn't or wouldn't.'

The next time you find an ongoing construction project in a house, take plenty of photos of it while you are on-site, then lay it on the LO's heart upon return to the office and let her find out how the UW wants it handled.

See, none of them knew the how was under construction -- the homeowner didn't tell the LO at application. [Yeah, ha...ha...] But the case is nobody told you when they ordered the appraisal.

The LO or processor knows who the investor is. There's often another consideration. Maybe the investor they intend to use has a shorter closing time that won't wrap around the wait required to finish this project.

Maybe another investor will accept it unfinished!! However, it's the UW's call and you will never know for sure.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks