C5 Flooring and incomplete 1004D.. Help?

[appraisaladam]

Hello.
I did an appraisal on a 70s rural raised Ranch refi.
Overall condition is C4 except for the flooring. About 80% of the upper level had plywood floors that the Owner was planning to re-floor with materials he had on site. The other 20% of the upstairs (2 bedrooms) had badly stained carpet (5 dogs and 1 cat). The basement bedroom also had badly stained carpet. I gave the home a C5 based upon the current state of the flooring mentioned. I specified in the report that the C5 items needed to be addressed and made the report “subject to.” This was Subject To flooring on the ENTIRE upper level except the bathroom, AND new flooring in the basement bed.
I did the 1004D today after the Lender told me all work was done.
New flooring was put in on the upper level EXCEPT FOR the two bedrooms with stained carpet. The basement bed was also NOT changed.
My original report was Subject To with a $245K value.
If the home were for sale now, I believe a typical buyer would require at least a $5K credit to cure the damaged carpeting in the two upper beds and basement bed.
How do I handle this now? With the original report submitted at $245K and a 1004D inspection that is not qualifying as at least C4 due to bad carpet?
Can I change the original report/value?
Do I say the items are not complete on the 1004D?
What is my best option?
Any advice or input is much appreciated! Thanks!

 

[Meandering]

Notify the lender and tell them all work required was not completed.

Send them a list of the work you are still requiring, and then ask the lender if;

1. They want you to complete the appraisal "AS-IS" NOW,

2. or wait for the work to be completed

3. Or complete the 1004D "AS-IF" the work is going to be completed to bring the property to at least a C-4,

but of course, if it was only the flooring, maybe when that is completed the entire house might warrant a C-3.

.

 

[appraisaladam]

Thank you very much for this response.

 

[appraisaladam]

Thanks again Meandering.
I submitted the 1004D report as “not complete,” and reported the value at $5K less than original value as a flooring allowance. Haven’t heard back from the Lender and it’s been a week.

 

[J Grant]

Thanks again Meandering.
I submitted the 1004D report as “not complete,” and reported the value at $5K less than original value as a flooring allowance. Haven’t heard back from the Lender and it’s been a week.

Why do appraisers volunteer to do stuff like this, which could sorry to say get you into problems...

keep it simple, you made it subject to floors, whether or not that was right call idk but you did it on the OA and lender accepted the appraisal with that condition of subject to, then you went out fore the\\ a 1004 d inspection and found floors are incomplete

Should have documented it with photos, mark work was not complete and turn the 1004 D in to the client. THE END. Instead you took it upon your self to reduce the value- so see what happens

 

[glenn walker]

Why do appraisers volunteer to do stuff like this, which could sorry to say get you into problems...

keep it simple, you made it subject to floors, whether or not that was right call idk but you did it on the OA and lender accepted the appraisal with that condition of subject to, then you went out fore a 1004 d and the floors are incomplete

Should have just documented with photos, mark work was not complete and turn the 1004 D in to the client. THE END. Instead you took it upon your self to reduce the value- so see what happens

You make the report Subject to the new flooring being installed, the value does not change and if you go out and do a 1004-D and the work was not complted you simply tell the lender that its not done yet. YOU NEVER lower your opinion of market value, because your value was always based on the new flooring being installed. Also what the hell is C-5 flooring ? We rate the overall condition of a property not a single amenity, I can have a C-3 house where the carpet had been damaged or removed, but I still have a C-3 house that just needs new flooring installed. I can also have a C-5 house where the idiot installed new floor coverings in a house that is ready to fall down : ) LMAO

 

[KONA]

Glenn is spot on. Your digging a hole that will get you in trouble.

 

[glenn walker]

Glenn is spot on. Your digging a hole that will get you in trouble.

I think the hole has already been dug : ) LMAO

 

[bnmappraisal]

submitted the 1004D report as “not complete,” and reported the value at $5K less than original value as a flooring allowance.

Why would you change your original opinion of value? For a "Flooring Allowance" ????

They probably haven't gotten back to you because they're trying to figure out WTH just happened

 

[glenn walker]

Why would you change your original opinion of value? For a "Flooring Allowance" ????

They probably haven't gotten back to you because they're trying to figure out WTH just happened

Where I worked we would have run the 1004-D through the shredder , waited until the flooring had been installed and sent another appraiser out to complete the 1004-D . In order to change a value on a 1004-D the appraiser would be doing a "re-certification of value " which was not part of the engagement or scope of work. Sometimes I just want to bang my head on the concrete, now I know why after 40 years of appraising and three X-Trophy Wife's Uncle Billy went into a bottle and has never come out : ) LOL