C5 to C4 as "Subject To" appraisal condition

[ZZGAMAZZ]

Conv purchase assignment with an Engagement that requires itemized repairs needed to bring C5 to C4 and corresponding "Subject To" appraisal conditions for each of the issues to be remediated. Questions:

--The SFR is in C4 condition but various additional improvements, e.g., covered patio, detached workshop, storage shed are C5 or C6. So.... just describe as such as estimate expenses to demolish/remove the C6 factors?
--Is a UAD condition rating affected by a dozen totally junked out cars that I can remediate with a C2C based on towning/disposal?
--If I require a roofing cert for the C4 dwelling unit because of obvious damage to the interior of the DU, would the reqiured C2C be based on an EA of what I "think" might be wrong???
--and just in general, do the lending industry standards that require C5 to be improved to min C4 always require a corresponding "Subject To" appraisal condition--which in this scenario presumably will be so extensive/expensive that the buyer will balk, although that's beyond the SoW of my involvement.

 

[Airstream]

If there are numerous junked cars (and I have seen it all in rural areas with little zoning enforcement) then I state there is a possible environmental hazard due to leaking oil and other car fluids. Make it “subject to” removal. Now if it is just one or two that’s a tougher call. If the place is a junky mess then I would be more strict about the junk in general since that is a marketability issue.

As to your other issues..sometimes a tough call; especially with old farmsteads and someone builds new or completely remodels a house on it. But if some of the outbuildings are in tough shape and purport to be useable I would bring attention to it and call for their removal or repair and give it a C5 if you think it warrants it. I’ve had this with some old barns. It is a safety issue IMHO.

If repairs are needed to be C4 then “subject to” unless the lender doesn’t care.

 

[ZZGAMAZZ]

If there are numerous junked cars (and I have seen it all in rural areas with little zoning enforcement) then I state there is a possible environmental hazard due to leaking oil and other car fluids. Make it “subject to” removal. Now if it is just one or two that’s a tougher call. If the place is a junky mess then I would be more strict about the junk in general since that is a marketability issue.

As to your other issues..sometimes a tough call; especially with old farmsteads and someone builds new or completely remodels a house on it. But if some of the outbuildings are in tough shape and purport to be useable I would bring attention to it and call for their removal or repair and give it a C5 if you think it warrants it. I’ve had this with some old barns. It is a safety issue IMHO.

If repairs are needed to be C4 then “subject to” unless the lender doesn’t care.

Possibly the most succinct, helpful response7 to any question I ever asked. Thank you.

 

[ZZGAMAZZ]

...and now before I even alerted the lender to the condition factors, the lender wants to add a rental survey. If so, are the "Subject To: factors that will be identified in the Opinion of Market Value pertain to the rental analysis, i.e., should I seek rental comps that reflect the subject's current condition, or the condition after the Subject To issues have been remediated????

 

[Dublin ohio]

...and now before I even alerted the lender to the condition factors, the lender wants to add a rental survey. If so, are the "Subject To: factors that will be identified in the Opinion of Market Value pertain to the rental analysis, i.e., should I seek rental comps that reflect the subject's current condition, or the condition after the Subject To issues have been remediated????

If the appraisal is "subject to", your rental comps should be compared to the repaired subject

 

[ZZGAMAZZ]

If the appraisal is "subject to", your rental comps should be compared to the repaired subject

AND....although totally coincidental, I found a property in the immediate vicinity that sold in distressed condition, and then sold again following a quick rehab; and I will include Both sales in the SCA grid as a real-world scenario that reflects the subject's "Subject To" appraisal conditions. [Seems like a genius idea IMO...although my so-called genius intentions often go awry!!!!] Any thoughts????

 

[Tom4value]

Conv purchase assignment with an Engagement that requires itemized repairs needed to bring C5 to C4 and corresponding "Subject To" appraisal conditions for each of the issues to be remediated. Questions:

--The SFR is in C4 condition but various additional improvements, e.g., covered patio, detached workshop, storage shed are C5 or C6. So.... just describe as such as estimate expenses to demolish/remove the C6 factors?
--Is a UAD condition rating affected by a dozen totally junked out cars that I can remediate with a C2C based on towning/disposal?
--If I require a roofing cert for the C4 dwelling unit because of obvious damage to the interior of the DU, would the reqiured C2C be based on an EA of what I "think" might be wrong???
--and just in general, do the lending industry standards that require C5 to be improved to min C4 always require a corresponding "Subject To" appraisal condition--which in this scenario presumably will be so extensive/expensive that the buyer will balk, although that's beyond the SoW of my involvement.

Sounds like you know what you are doing so this will be more of a confirmation than an answering of your questions.
- C5 or C6 generally means end of their economic life and those items would be more expensive, if not impossible to fix so yeah, cost to remove is the right choice.

- A car or two junked in the yard can be removed in 20 minutes but a dozen? Yikes! Call Jeff Foxworthy for a new, “You might be a redneck” joke. Seriously, definitely a possibility for soil contamination. Affect on C4 and call for an inspection after removal of the cars.

- “obvious” damage is what we are responsible for so yes, EA that.

- Last question is to be answered by your client/lender. My experience is generally they can’t lend on C5 but some lenders can do magic. Let them make the call.

 

[breakmaker]

Everything is based on the remidiated/corrected/ C4 condition rating minimum; with most lenders not lending on C5-C6. I appraise in LA county with most cities having a nuisance ordinance.