C5 condition

[Fernando]

I said subject is C5 condition and lender wants me to condition to make C4. Why do I need to condition? I state what I see.
I'm not an expert but I see subject is not C4 compared to typical homes in area.
The hardwood floors need to be refinished or covered with carpet.
Peeling paint. This is not FHA loan.
Kitchen is old.
I see dryrot on window panes and I suspect more in other parts of the house.
Should I condition on a termite inspector?

 

[spittman]

Check you client specific instructions. Lender might not loan on C5 condition so instructions might say notify client before proceeding or list repairs needed to bring property up to C4 condition. If you ignored instructions then that is on you.

 

[Fernando]

Check you client specific instructions. Lender might not loan on C5 condition so instructions might say notify client before proceeding or list repairs needed to bring property up to C4 condition. If you ignored instructions then that is on you.

I contacted AMC. Told to condition to C4.
As an investor, it's a fixer and need to be repaired throughout.
A contractor examining condition would know more what really needs to be repaired.
As an appraiser, shouldn't I state C5 and relieve me of the repairs needed?

 

[Fernando]

I can say repair the dryrot which is major but that ain't enough to make the house nice.

 

[Fernando]

On a nonFHA loan, if you see dryrot on the exterior of the house, would you condition in repairing the dryrot?
How about peeling paint?

 

[spittman]

Fernando, you clearly don't understand what the client is asking you to do. Sounds to me like they are asking you to complete the appraisal under the hypothetical condition of C4 and "subject-to" what is needed to bring property up to that condition.

 

[Fernando]

Fernando, you clearly don't understand what the client is asking you to do. Sounds to me like they are asking you to complete the appraisal under the hypothetical condition of C4 and "subject-to" what is needed to bring property up to that condition.

Yes that's what they're asking but we know we are not building inspectors.
A buyer would do a thorough inspection of the house.
As an appraiser, we only observe and we call it C5 because it's not C4 like other homes in area.
Why put higher expectation on appraisers to call out what needs to be done because seeing dryrot, I'm seeing tip of iceberg of other potential problems in the house.
I can do the appraisal using C5 and get comps also C5 but don't make it more complicated by asking appraiser to point out everything to appraise it like a C4.
That's not how you do appraisals. Appraisers compare fixers with other fixers.

 

[Fernando]

Thank goodness I was wearing a mask. Otherwise owner will see how disgusted I felt inside his house.
Somehow he knew. My eyes must have given it away.

 

[glenn walker]

You--are a Racist and rather then helping people you had to go a hard C-5 -- If you were not such a judgemental POS--You could have gone a C-4 Subject to some inspections or repairs. BUT no NANDO is a God of condition unless it's his rentals--Which have MOLD : ) LMAO

 

[Fernando]

You--are a Racist and rather then helping people you had to go a hard C-5 -- If you were not such a judgemental POS--You could have gone a C-4 Subject to some inspections or repairs. BUT no NANDO is a God of condition unless it's his rentals--Which have MOLD : ) LMAO

After I saw the house, I considered it C5. That's what UAD says regardless of the typical homes in area.
Before UAD, I considered the homes in Felony Flats and the C5 would have been C4.
Because of how systemically lenders and Fannie have changed the rules, poor neighborhoods are adversely affected.
UAD ask whether C4 or C5 regardless of neighborhood in relative terms.

If I say C5 why should I condition what needs to be corrected. UAD never said it had to be fixed. It's the lender's call.
I can describe the deferred maintenance and lenders should decide what to do whether to do further investigation or condition to be repaired to before giving the loan.

So lender threw the ball on my court. If I use C5, I will have to set up condition to be repaired for homeowner to get loan.
I can see in a poor area where homeowner does not have enough cash, owner will stop the loan process.

So it's up to me in deciding the owner's fate.
If I put C5, I can't justify putting a repair condition if I appraise the house in its as is condition.
It's not a hard C5 as Glenn mentioned. It's more of soft C5 so I''m leaning to call it C4 and I'll mention the deferred maintenance.