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Black couple settle lawsuit as home value at $500k below real price

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I don't appraise people. I appraise real property.
 
Fernando said:
When an owner had done extensive renovations, owner (even agent) provided me a list of what was done and even the costs.
I have no choice but to look at the information given to me to do the appraisal.
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Okay. you do seem shy to me. I apologize if that offends you. That is not my job to appraise you. I appraise real property.

I set SOW.

Understand?

Fernando, you do seem shy in some ways to me. I don't go down that road with homeowners. However, I set SOW to complete the assignment on real property.
 
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Intended use and user and value definition are huge elephants in the room here. I set the SOW regardless.

USPAP is independent appraiser's friend. Get it together and watch people like Joan go down in flames and USA.

I just need leader of HUD and POTUS to listen.

CFPB would be icing on the cake. Nothing would please me more than protecting the nation on the current course.
 
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Zoe said:
Okay, I got lost somewhere in the shuffle. I thought this was a huge renovation. Like multi hundred thousand dollar renovation.

Maybe they had that much cash. I would have known that when I left the property. I would have let them know I may have to call them back before I completed the appraisal.
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In California, a $400,000 renovation is not "huge". Paul Austin and his wife both work, so I am sure they had their own money plus I would guess a max $250K or so from refinancing. And the couple may have thrown what they valued their own labor was worth into that $400,000. ( You can't believe homeowners, in general, on these things. ) So, in other words, take that $400K with a grain of salt.

The addition of a first story below a second story on poles is kind of interesting - given that an initial plan for the footing was rejected. Building inspectors, I can guarantee you, are not perfect. I guess we have to assume that the plans were eventually approved, given that some subsequent inspections were approved.

Anyway, on record, they currently have a conventional loan, which looks very much like a simple refinance on the original home.

Loan History:
They purchased the home on 12/13/2016 for $550,000 taking out an FHA loan for $540,490.
On 6/6/2018 they refinanced through a conventional loan of $679,650.
On 4/5/2019 the refinanced through FHA was $739,239.
At this time it looks like they submitted the initial plans and application for permits.
On 8/30/2019 they received $40,000 from a private lender
5/8/2020 they refinanced via a conventional loan at $756,500
On 11/30/2021 they refinanced again via a conventional loan at $750,000 (and this was probably just to get a lower interest rate). This is their current loan.

The house is still missing a final inspection of plumbing and a final building inspection. For all we know, there may be some very serious hurdles in getting past the final. New issues may have arisen on the last inspection. Hard to say. It is an Owner-Builder managed construction. All kinds of problems can occur at any stage. Inspectors can catch things they overlooked in previous inspections. It is the RESPONSIBILITY OF THE GENERAL CONTRACTOR ( in this case Paul Austin and his wife ) to make sure everything is done to code. The inspectors do not bear that responsibility. Thus, yes, yes, the inspectors can make mistakes and get away with it. Buy the general contractor has no such leeway. So, the word is:: If you frigging want to be your own general contractor - you had better know for sure what the code is - because you have 100% responsibility for everything.
 
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Trump relieved regulation on banks on single family regulation. Biden don't even grasp it for public trust. Get it?

Pandora's box has been opened wide open.
 
RCA said:
In California, a $400,000 renovation is not "huge". Austin Tate and his wife both work, so I am sure they had their own money plus I would guess a max $250K or so from refinancing. And Austin Tate may have thrown what he valued his own labor was worth into that $400,000. ( You can't believe homeowners, in general, on these things. ) So, in other words, take that $400K with a grain of salt.

The addition of a first story below a second story on poles is kind of interesting - given that an initial plan for the footing was rejected. Building inspectors, I can guarantee you, are not perfect. I guess we have to assume that the plans were eventually approved, given that some subsequent inspections were approved.

Anyway, on record, they currently have a conventional loan, which looks very much like a simple refinance on the original home.

Loan History:
They purchased the home on 12/13/2016 for $550,000 taking out an FHA loan for $540,490.
On 6/6/2018 they refinanced through a conventional loan of $679,650.
On 4/5/2019 the refinanced through FHA was $739,239.
At this time it looks like they submitted the initial plans and application for permits.
On 8/30/2019 they received $40,000 from a private lender
5/8/2020 they refinanced via a conventional loan at $756,500
On 11/30/2021 they refinanced again via a conventional loan at $750,000 (and this was probably just to get a lower interest rate). This is their current loan.

The house is still missing a final inspection of plumbing and a final building inspection. For all we know, there may be some very serious hurdles in getting past the final. New issues may have arisen on the last inspection. Hard to say. It is an Owner-Builder managed construction. All kinds of problems can occur at any stage. Inspectors can catch things they overlooked in previous inspections. It is the RESPONSIBILITY OF THE GENERAL CONTRACTOR ( in this case Austin Tate and his wife ) to make sure everything is done to code. The inspectors do not bear that responsibility. Thus, yes, yes, the inspectors can make mistakes and get away with it. Buy the general contractor has no such leeway. So, the word is:: If you frigging want to be your own general contractor - you had better know for sure what the code is - because you have 100% responsibility for everything.
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Okay, so we likely have several appraisals rolling.

I don't see how private lender on 08/30/2019 got in mix with FHA being lienholder on subject. Second mortgage, FHA would probably have maintained first lienholder place.

The next part makes sense on 05/08/2020 with conventional loan because they had to pay off FHA and any previous liens on subject. The lower interest rate on 11/30/2021 makes sense to me.

I agree the liability should fall on who did the work.
 
Understand, I don't appraise that kind of stuff. I appraise Market value or whatever value definition for intended use and user as of an effective date. Lawyers and title insurance companies and whoever else can handle the rest.

I appraise real property.
 
Paul Austin is CEO of the non-profit Play Marin ( https://www.playmarin.org/). He is educated in sociology and education.
Tenisha Tate-Austin is by profession an educator but is currently CEO of her own company "Critical Friends") She is also educated in sociology and education.


So, neither show experience in construction. They may have taken some Owner-Builder courses. But, the same could be said of many in California.

I also did a major addition to our house around 1993. I am a software engineer. --- But then, my father was a cabinet maker, carpenter and farmer. So, I grew up around a lot of construction. And, I also went through an Owner-Builder set of courses in Berkeley. I am consequently familiar with the problems owner-builders face. I don't recommend it for anyone who is not prepared to dig deep into building codes to make sure they know what they are doing - and they should hire local licensed subcontractors for critical components of the construction.
 
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I am good at cost to cure if I get an expert in the areas on cost to cure.
 
RCA said:
Paul Austin is CEO of the non-profit Play Marin ( https://www.playmarin.org/). He is educated in sociology and education.
Tenisha Tate-Austin is by profession an educator but is currently CEO of her own company "Critical Friends") She is also educated in sociology and education.


So, neither show experience in construction. They may have taken some Owner-Builder courses. But, the same could be said of many in California.

I also did a major addition to our house around 1993. I am a software engineer. --- But then, my father was a cabinet maker, carpenter and farmer. So, I grew up around a lot of construction. And, I also went through an Owner-Builder set of courses in Berkeley. I am consequently familiar with the problems owner-builders face. I don't recommend it for anyone who is not prepared to dig deep into building codes to make sure they know what they are doing - and they should hire local licensed subcontractors for critical components of the construction.
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See, licensed contractors are very important. I am like a sponge. I am not an expert in title searches and title insurance and many areas of licensed home inspectors or faulty construction or whatever else involved.

What I am an expert is in real property appraisals. Remember intended use and user and market value definition as of effective date.
 
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