C5 at inspection. Lender wants appraisal changed

[CANative]

If the report was subject to, yes it does. It doesn't make any sense to appraise "subject to" a list of repairs if the "as-repaired" condition stays the same as the "as-is" condition. The way I read the OP, the original report should have been C4 subject to repairs.

That's not how I read the OPs scenario. The lender wants the OP to change the condition rating because there is apparently a 1004D floating around that says some repairs were made. If the OP had done the 1004D he still wouldn't change the condition rating even if they rebuilt the entire house.

 

[Mike Garrett RAA]

One man's C5 is another man's C4.

 

[hastalavista]

So the property had issues with the foundation (settlement cracks), pool (empty), heating (mold/mildew by vents), inside (settlement cracks aplenty), roof (water stains on ceiling). Report was "subject to" repairs/ inspections. Another appraiser did the 1004D/442 and realtor tells me today that they had everything "inspected and signed off" by some contractor. Lender wants me to change the original report to show C4, which it wasn't at the time of inspection. Doesn't the 1004D/442 clear the condition issues? I told the lender this but my head is swimming in a sea of CE units :Eyecrazy:and I could use the feedback. Thanks!

(my bold)

I'm unclear here as to exactly what was done.

The subject is in need of repairs. As-is, let's say it is C5.
The appraiser values the subject "subject to" repairs.... here is the "unclear" part....
If the report is made subject-to repairs, then the value is based on the HC that the repairs were made as of the time of the inspection.
Was the C5 condition rating reflective of the subject as-is, without the repairs, or was the C5 condition reflective of the subject, with the repairs?
The appraisal should have (and I'd be surprised if you didn't) been reflective of the condition based on what the assumption was: as is, or subject to.
If as-is, it was C5, but subject-to repairs, it would be C4, then the report should have reflected C4 using the HC.
If after the repairs were made, the subject remains in a C5 condition, then there's no change to the report; the HC was based on repairs that do not affect the as-repaired condition rating.

Which one was it? :new_smile-l:

 

[Riick]

Have people here lost the ability to parse the meaning out of a few sentences?

• 1. Appraiser "A" writes a report on Date "X" saying subject is currently in C5 condition, and (presumably) makes a As-Repaired value estimate (Subject to certain repairs)
• 2. Appraiser "B" does a re-inspection, and says property's been repaired.
• 3. Appraiser "A" has apparently seen the property after "B" re-inspected, and believes it is still in C5 condition.
• 4. Lender tells Appraiser "A" to change the report to show that -as of the effective date- the property was in C4 condition

Questions:

• (a) Can Appraiser "A" change the report to reflect C4 condition as of the effective date?
• (b) If appraiser does so, can I borrow his crystal ball & time machine?

 

[TRESinc]

Have people here lost the ability to parse the meaning out of a few sentences?

• 1. Appraiser "A" writes a report on Date "X" saying subject is currently in C5 condition, and (presumably) makes a As-Repaired value estimate (Subject to certain repairs)
• 2. Appraiser "B" does a re-inspection, and says property's been repaired.
• 3. Appraiser "A" has apparently seen the property after "B" re-inspected, and believes it is still in C5 condition.
• 4. Lender tells Appraiser "A" to change the report to show that -as of the effective date- the property was in C4 condition

Questions:

• (a) Can Appraiser "A" change the report to reflect C4 condition as of the effective date?
• (b) If appraiser does so, can I borrow his crystal ball & time machine?

the bold part never happened. read the OP again quoted below.

So the property had issues with the foundation (settlement cracks), pool (empty), heating (mold/mildew by vents), inside (settlement cracks aplenty), roof (water stains on ceiling). Report was "subject to" repairs/ inspections. Another appraiser did the 1004D/442 and realtor tells me today that they had everything "inspected and signed off" by some contractor. Lender wants me to change the original report to show C4, which it wasn't at the time of inspection. Doesn't the 1004D/442 clear the condition issues? I told the lender this but my head is swimming in a sea of CE units :Eyecrazy:and I could use the feedback. Thanks!

Ca Ar never reinspected the property. Denis, once again, got it right.

 

[Non Sequitur]

Have people here lost the ability to parse the meaning out of a few sentences?

When you appraise subject to, the condition and the opinion of value in the report should reflect what the property and value would be after the repairs. The original report should have reflected the superior condition after the repairs, C4 or better, subject to the repairs being completed. If the subject would still be a C5 after repairs, why appraise it subject to, and what would be the point of that? And we're not even getting to the opinion of value.

 

[hastalavista]

Have people here lost the ability to parse the meaning out of a few sentences?

I guess I've lost that ability, because what I read and you read are two different things... but, maybe its me!

So, let's see...

• 1. Appraiser "A" writes a report on Date "X" saying subject is currently in C5 condition, and (presumably) makes a As-Repaired value estimate (Subject to certain repairs)

• 
  OK, this would be the OP. He described the condition (and we think the subject was in C5 condition as-is), and he makes the report subject-to repairs. So far, so good!
  
  

  [*] 2. Appraiser "B" does a re-inspection, and says property's been repaired.

  I got this one too; another appraiser goes out and does the 1004d (cert. of completion)
  

  [*] 3. Appraiser "A" has apparently seen the property after "B" re-inspected, and believes it is still in C5 condition.

  Here I claim illiteracy. I didn't read that the OP has seen the property after the other appraiser signed-off the 1004D.
  I do read that a Realtor told the OP that everything is fixed. I'm not sure the OP re-visited the subject.
  
  

  [*] 4. Lender tells Appraiser "A" to change the report to show that -as of the effective date- the property was in C4 condition

And here lies the crux of my question: If the original report apprised it subject-to repairs, and if those repairs would have resulted in a C4 condition, then based on the HC, the original report should have been C4 to begin with.
If the original report was C5, and with the repairs, that didn't change the C5 rating, then no change to the original report should be made.

Questions:

• (a) Can Appraiser "A" change the report to reflect C4 condition as of the effective date?

• 
  Certainly.... if it should have been C4 to begin with based on the HC.
  
  

  [*] (b) If appraiser does so, can I borrow his crystal ball & time machine?

You don't need Mr. Peabody, Sherman, and the Way-Back machine to correct a mistake (if, indeed, that is what occurred).

:laugh:

(I was writing as Tres posted)

 

[CANative]

The crux of the problem is: "Lender wants me to change the original report to show C4,"

The answer is No. Nothing else is relevant or pertains. The time machine metaphor that Riick posted about is dead on. I was going to post the same thing but it was time to go home.

 

[hastalavista]

The crux of the problem is: "Lender wants me to change the original report to show C4,"

The answer is No. Nothing else is relevant or pertains. The time machine metaphor that Riick posted about is dead on. I was going to post the same thing but it was time to go home.

So, Greg:
Are you saying that
A. if the subject is in C5 condition, and
B. if the report is made subject-to repairs, and
C. if, as a consequence of those repairs, the subject would be in C4 condition, and
D. if the report, subject-to repairs, indicated that with the repairs the subject remained in C5 condition, then
E. The report shouldn't change the original condition rating from C5 to C4?

That is the crux of my question.
I could care less what the 1004D says or doesn't say.
All I ask is for clarification on if the subject-to repair requirement resulted in the as-is C5 condition rating being transformed into a C4 condition rating with the repairs.
If that is the case, and the original report indicated C5 with repairs, that's an error. That can (and should) be corrected... no time machine or extra thinking needed.
I also said that, even with the repairs, if the subject-to condition in the original report wouldn't change (it was a C5 without the repairs, and remains a C5 with the repairs), then nothing should be changed.

:new_smile-l:

 

[Riick]

the bold part never happened. read the OP again quoted below.

Ca Ar never reinspected the property. Denis, once again, got it right.

Try post #4, then tell me what apparently happened

"Nothing was repaired. In it's former and apparently current condition it was C5. The building was not "adequately maintained". If the pool was filled with water the property is still in C5 condition and "features obvious deferred maintenance". "All major building components are adequately maintained and are functionally adequate" does not apply since nothing was repaired. "

Yep everybody sees what they wanna see, and reads what they wanna read, it's a travesty of Harry Nisson's Harry Nilsson Narrates, "The Point":Chapter 7 - YouTube