Can you delete outbuilding photo ?

[John Malone]

I got this request today . any suggestions?

Hey John –

I need to know if you can either eliminate the shed/outbuilding (that has no siding) from the appraisal completely, or if you can just ignore that it has not been done. The siding has been ordered but will not be in for several weeks, and if I have to get them to side the out building (which would happen if we make mention that it is not sided or show a photo that it is not sided) then I will lose this deal.

I don’t want to compromise you at all, but if it is easier to just eliminate the out building from the appraisal (I realize we may lose some value on the home, but I can’t imagine it is giving that much value to it). If you don’t have a problem signing off on everything else and taking a few photos of everything else, that would be great. Let me know what you are most comfortable with.

I told Bobi to call you to schedule. They will most likely be done everything by Monday, so if you could get out there on Tuesday (if possible), that would be great.

 

[Christine Marie]

photo please......must see to believe....

 

[Don Clark]

It depends

Depending on the type of financing, you might consider it. VA and FHA requires that all out buildings that are real estate meet minimum property requirements. If for any other purpose, and it does not add or detract significantly from the properties utility, purpose, and function I would see no reason not to eliminate it from the appraisal. Or, as I have done several times, I note that there is a shed but that it not in a useable condition and no value has been given in the appraisal.

 

[Jim Onderisin]

I'll second Don's thoughts. Put yourself in the shoes of a potential buyer. If the outbuilding was not sided, they might not pay as much for the property. They might even find the outbuilding worthless to them and reduce the purchase offer accordingly. Or, they might negotiate with the seller to have the building sided to retain the offer amount. You be the judge.

 

[hastalavista]

Don gives a valid option.

However, here's the request (summarized) from your client-
"If the lender has to consider that the siding isn't finished, then I will loose the deal".

Does the shed affect value? Does an unsided shed affect value? If it doesn't, why should the lender care- it wouldn't. But, apparently, it has guidelines that say "unfinished outbuildings need to be complete before loans are to be made".
Removing a factual statement/photo of the subject from the report because its consideration would cause the lender to make a decision unfavorable to a specific outcome violates ethics and USPAP. If the lender has guidelines (such as Don suggests) that say
"under certain conditions, we will consider a property is eligible for a mortgage loan if no value is given to outbuildings that are near or at the end of the economic life and have no adverse effect on value, marketability or the health & safety of the occupants...."
Then you could revisit the issue and make the determination that the outbuildings don't subtract value, are not a safety hazard, etc., but the lender knows that they exist.

Removing information to withhold the information from the lender so it cannot be considered won't fly!

 

[Steve Owen]

I agree with Don's option, for the most part. But, first you need to ask yourself a few questions. Is the outbuilding real estate or personal property? If real estate, is it a significant improvement? Is any hazardous material involved? If a new owner didn't want it, what would be the cost to remove? Does it, in fact add value and, if so, how much?

If it is just a typical, small storage building, then Don's answer would seem reasonable. You cannot say that something isn't there that is there, but you could say that it is there but you gave it no value. This is especially easy to do if the outbuilding could be considered to be personal property... not attached to a permanent foundation. We do the same thing with above ground pools all the time.

 

[Mountain Man]

It's a "pole shed" kind of construction... it doesn't need siding to be functional, so call it a shed. If it's one of those 10X10 deals that comes in on a flat bed that you can get at Lowes or Home Depot, I don't give those value any way... personal property. They can just as easily leave the way as they came in. ;-)