Can a home with no appliances be signed 'as is' ?

[Webbed Feet]

To All,

Hey I have a question.

I have this sale of a recently renovated SFR property. .. All three bathrooms are missing the toilets. I understand this is because the buyers want to install their own toilets later and don't want the seller's toilets. The buyers say they will rent a Port-a-Potty and have it out at the curb until they are done shopping. I was wondering, if I could just use CB1 for an "as-is" appraisal or if I have to make the appraisal "Subject to" toilets?

Now, I have this other house with no carpets?.... The buyers are saying ........

 

[Mountain Man]

I've sold them without appliances before, but not often. The only time we HAVE to include appliances are for lower priced starter homes. Those folks generally don't have a couple thousand in cash to be able to go pick out the fancy stuff THEY want. We either sell them with typical spec grade, or give the buyers a little credit towards the purchase of their choosing. Most buyers want to decorate and furnish the house themselves... kitchen appliances included. So I'd say if you make an adjustment, it should be about what the typical "spec home" appliances will cost. Because if the buyers want the Viking stoves, they have to lay out the $$$$ themselves.

 

[Ariba]

Ron, but what if they are not there? Then they cannot be attached, can they? Is it possible for the buyer and seller to agree that the appliances do not go with the house?

If they are old and no longer very functional, and the buyer conditions the purchase on the seller getting rid of the old and not very functional appliances, is that in violation of Colorado law?

Never did I say that it was a Colorado Law, just common practice. Yes, the buyer and seller can agree on anything they want, however the underwriter might not go along.

Did a condominium recently and the kitchen was gutted, the buyer did not seem to mind and agreed to purchase the unit, However the underwriter wanted the unit to be habitable and turned the deal down. The buyers could not affort to finish the kitchen. I doubt that the any bank wants to own any real estate that is not habitable in their inventory.

 

[Mountain Man]

Did a condominium recently and the kitchen was gutted, the buyer did not seem to mind and agreed to purchase the unit, However the underwriter wanted the unit to be habitable and turned the deal down. The buyers could not affort to finish the kitchen. I doubt that the any bank wants to own any real estate that is not habitable in their inventory.

Those deals are doable, but you have to use a local bank and an in house loan, or use a private money lender. They can refinance with conventional next month once the repairs are done. Any agent who can't help the buyer figure out the correct financing is not an agent worth having.

 

[Joyce Potts]

To All,

Hey I have a question.

I have this sale of a recently renovated SFR property. .. All three bathrooms are missing the toilets. I understand this is because the buyers want to install their own toilets later and don't want the seller's toilets. The buyers say they will rent a Port-a-Potty and have it out at the curb until they are done shopping. I was wondering, if I could just use CB1 for an "as-is" appraisal or if I have to make the appraisal "Subject to" toilets?

Now, I have this other house with no carpets?.... The buyers are saying ........

Excellent analogy. Where do fixtures begin and appliances stop? How about all the light and plumbing fixtures? How many dishwashers are not built-in these days?

I still say there is no right or wrong answer, but for me and mine the better answer is why even take the chance, given the litigious atmosphere these days? It closes one more door to legal exposure as far as I'm concerned.

 

[Richard Carlsen]

Under the old form, I considered only built-in appliances in the value of the house.

Now, I simply log what is there and give no value to them because they might or might not go with the house in a sale.

As far as being permitted to appraise a house with no appliances, we in Michigan are permitted since there is no restriction against it.

It could be a requirement for a C of O but who cares about a $350 range in a $185,000 house anyway?

 

[larryhaskell]

Do a hold back

I don't know if it's still done but in the past some lenders use to do a hold back. We would go out and do a final inspection for what was missing and the lender would release the rest of the money. Haven't done one for some time so I don't know if this is an option.

Sounds like the lender may Richard and if they don't care about the $350 range/oven they may care about the C of O.

 

[Webbed Feet]

Under the old form, I considered only built-in appliances in the value of the house.

Now, I simply log what is there and give no value to them because they might or might not go with the house in a sale.

As far as being permitted to appraise a house with no appliances, we in Michigan are permitted since there is no restriction against it.

It could be a requirement for a C of O but who cares about a $350 range in a $185,000 house anyway?

Mr. Carlsen,

You are SO right!... Ok, so who cares about those $120 toilets?

Maybe we can take this concept even deeper in order to provide appraisal reports void of any hassles for our clients! ... ... Now I have this other appraisal ordered and the buyers are saying they don't want the builder's windows... they are going to nail up plywood over the holes and buy their own windows later...........It's only $14,000 or $16,000 so... What's that in a $580,000 house anyway?

:new_multi:

 

[Frederick R. Ruffell]

Answer:
mark your appraisal "AS-IS".
Adjust for the lack of appliances in the Sales approach.
Functional Obsolesence (curable) used in the cost approach.

I am of the opinion that appliances are NOT personal property because:
1, When installed the intent is that the appliances are to remain and were chosen to fit the other parts of the kitchen, both dimensionally and asthetically. (sp?)
2, My markets expectation is that the house comes with appliances installed or there is a credit for such items.

 

[Ariba]

Anything is Doable, just show we the way

Those deals are doable, but you have to use a local bank and an in house loan, or use a private money lender. They can refinance with conventional next month once the repairs are done. Any agent who can't help the buyer figure out the correct financing is not an agent worth having.

Yes, anything is "doable" given the right circumstances. Try FHA financing! Yes you can also get an inflated appraisal by skippy and use the extra money to compete the necessary repairs to make the unit livable. There are always ways to make things work, but are you really doing the buyers any favors?

Is thit not one of the reasons why the real estate industry is in such disarray, real estate agent pushing deals that are not right for the buyer.

I guess we can say the same of any appraiser who can't help the buyer get their value is not an appraiser worth having.