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

[James Nguyen]

I have a purchase deal for property that is 'almost' fully renovated. I say almost because there is no refrigerator or stove, only because the purchasers want to install their own appliances. I also have documentation for recepits and an expected delivery date.

Is it acceptable to uncheck the appliances on the 1st page of the URAR, sign an appraisal 'as is', and explain why there are no appliances? or does 'as is' mean that the the appliances have to be there?

thanks in advance

 

[Joyce Potts]

Typically the fridge is considered personal property unless it's a high-end sub zero or something.

Depending on the market and if your comps all had fully equip kitchens, I think it would a prudent move on your part to make the appraisal subject to installation of the appliances.

Otherwise, if they never make it there, you may be held responsible. So why risk it?

The other side of the argument is do they really significantly contribute to the overall value?

For me, I'd either make it 'subject to' OR lower the value by the estimated adjustment (cost to cure) for the appliances to make it 'as is'.

 

[Geoff Hatcher]

Appliances are considered personal property, often used as a marketing feature but have not impact on the real property.

 

[Tim Schneider]

Appliances are considered personal property.

I agree, that is why I only check the boxes on the form if the appliances are built-in, like a dishwasher or OTR microwave. Even if one of these were missing, I don't think you could justify a adjustment due to a lack of data for homes that sold while missing a dishwasher or micro. Some people may see it as a plus, because they don't need to pay to dispose of an old appliance.

 

[Mister Ed]

As is... sure... why not?

If appliances are a "standard" in your market, why not adjust for the lack of appliances?

Any house can be appraised "as is..." The problem would be that many of the "as is..." appraisals can be extremely UGLY!!!!

My partner had to do "AS IS" appraisals on about 50% complete houses (builder went bankrupt and walked leaving the bank holding the bag). They were tricky, but he came up with something credible (and charged about 2.5 times his normal fee).

 

[Ariba]

Appliances are considered personal property, often used as a marketing feature but have not impact on the real property.

In Colorado at least, appliances attached to the house are NOT personal property. For example: Electric/gas stoves, range, oven, dishwasher, trash compactor go with the home unless it is spelled out in the contract.

 

[larryhaskell]

In Washoe County and I expect in most other counties in NV it must have a stove to have a Certificate of Occupancy from the local jurisdiction. I realize your property is a renovation but if permits were pulled the local jurisdiction may still require that a range/oven be in place. If it were me I would require that a range/oven be installed if they wanted me to make the report as is.

 

[incognito]

You can appraise a half burned down house "AS IS". Your local market, not what others say, will dictate what is personal property, and what is real estate. The law of fixtures suggests that appliances would be personal property. However, my local market considers a range/oven to be built in, and real estate, and VERY rarely does a single family home convey without a range/oven.
Having said that, there is no reason you could not appraise a house without a range oven "AS IS". However, consideration should be made in the sales grid if it impacts sale price and value, IN YOUR MARKET AREA, if the comparables sold with a range/oven.

I think this is more an issue of what the lenders requirements may be. Appraisal wise )and USPAP wise), you can do it any way you want. Just because a range/oven may be needed for a c/o does not mean you cannot appraise it without one! You can appraise a half built house, "AS IS".

 

[Joyce Potts]

And there are residences that spend big $$ on high end appliances, so I don't think one answer fits all situations.

 

[Mike Garrett RAA]

The answer is..."maybe".