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

[Wayne Tomlinson]

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?

Just wondering.

My daughter was purchasing her first home. A cheapie It had some of those old metal cabinets in the kitchen. Two days prior to closing, she called and said "Dad, they took all the cabinets from the kitchen. What do we do?"

My response was to call the agent, tell her if the cabinets were not reinstalled as well as they were before, there was no deal!!

At the agents suggeion there was only $100 earnest money. So the cabinets were reinstalled, and the deal closed.

Things happen.

Wayne Tomlinson

 

[robert higgins]

Appliances are considered personal property, unless they are built in, aka range top, built in micros...I would just explain the contract house is sold with out appliances as the buyer is install their own. subject as-is, typical sales include appliances, frig and stove of various ages, but have no affect on market value. Typical cost to replace appliances with new ones is: stove $zzz, frig $zzz.

 

[Mike Garrett RAA]

what is a frig...and what does it have to do with appraisal?

 

[Michigan CG]

Appliances are sometimes negotiating tools.....some people buying homes have their own appliances to bring with them, some buyers want the appliances that are in the home, especially if they are better than the ones they are bringing with them or that they can afford to buy after the home purchase.

Appraisal is an opinion of value, and getting appliances in is getting a little tricky, or too "good" at the appraisal process. If the stove and fridge are brand new, and they cost $2500, are they worth $2500 now? Try to sell them on the open market as used....will be worth half at best.

Dealing with a $100,000 home are the people bringing in appliances that cost $2500? Probably not. You can buy $200 fridges and stoves. Dealing with $300,000 homes they want better fridges and stoves, but what are they worth?

If you are trying to find market indicators of homes that sell with or without appliances you are going to spend a whole lot of time trying to find matched pairs that are unreliable with bigger things to consider.

I would guess that the negotiating process in the transaction would include discussions about appliances and that is how the deal is closed.

In another note...$1000 in appliances on a $200,000 house is 1/2% of market value...and I don't think you can find an appraiser who thinks that they are that good. If they are, I would love to meet them.

 

[Dean McMillan]

Maybe.

"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?"

Might I suggest checking with your lender to see if they will do the loan with an "as is" appraisal or if they need it "subject to" installation of appliances. If they are ok with "as is"; disclose, disclose, disclose and make appropriate adjustments to your comparables (cost to cure possibly) for the lack of appliances.

 

[Webbed Feet]

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

Mr Hatcher,

So a gaping hole in the kitchen cabinets where the built-in dishwasher was supposed to go is completely acceptable huh?

 

[Michael Tipton]

This is a purchase transaction that does not include kitchen appliances? If the sales contract does not include kitchen appliances why would you consider checking the boxes on page 1 of the 1004?

If you have concerns, ask the client. I would note in the addendum that the purchaser will be buying the appliances separate of the subject purchase agreement.

 

[BenLuby]

You've stated that you have seen the receipts for the new appliances that the buyers have purchased and are going to have delivered and installed. Make an EA, note it properly, and include copies of the receipts as well. They are putting them in, but the buyer is doing this, not the seller. Make your value contingent upon putting the appliances in, or else the value shifts to x beaver pelts. Not a major adjustment, obviously, but it would potentially have an impact on value, depending on quality of appliances and subject.

 

[Marcia Langley]

James,

You are right that without appliances you can express an 'as is value.

You are right that with appliances you must express a 'subject to' value.

So I understand your question to be not whether an 'as is' value can be determined/expressed but whether the client expects you to adhere to specific guidelines (IE: Fannie Mae or the bank) that would disallow it.

I assume the client has ordered a Fannie Mae compliant appraisal?

Fannie Mae guidelines say a house must be livable. I think a house with no food preparation facilities is not livable (stove).

What the buyers (or sellers or anyone else) plans to do in the future has no bearing on your appraisal (and it's effective date). Uninstalled appliances can only be considered in a 'subject to' expression of value.

I expect the lender has a choice here, they can require a 'subject to' appraisal and meet Fannie Mae guidelines or they can accept an 'as is' appraisal in a non-Fannie-compliant appraisal.

In my opinion, the stove is the issue. I don't think Fannie would care so much about the gaping hole waiting for the built in dishwasher.

At any rate, the appraisal should clearly describe the truth per the effective date.

 

[Webbed Feet]

You've stated that you have seen the receipts for the new appliances that the buyers have purchased and are going to have delivered and installed. Make an EA, note it properly, and include copies of the receipts as well. They are putting them in, but the buyer is doing this, not the seller. Make your value contingent upon putting the appliances in, or else the value shifts to x beaver pelts. Not a major adjustment, obviously, but it would potentially have an impact on value, depending on quality of appliances and subject.

Mr. Luby,

That part in the 03/2005 form's SOW that says the appraiser is not allowed to modify the assumptions already preprinted for the form was just Fannie making with a funny huh?

Oh wait, you must have decided this should be turned in using non-Fannie forms!