• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Condo appraisal

Status
Not open for further replies.

Jeff Le Monds

Thread Starter
Freshman Member
Joined
Feb 20, 2006
Professional Status
Certified Residential Appraiser
State
Colorado
I am appraising a one level condominium with some structural issues. The floors are uneven resulting in a possible saftey issues. The floors are around 6-10" uneven from side of the unit to the other. All of the interior doors stay open and the sliding glass door does not close properly. The HOA is currently not taking any action to correct the problem. The property was listed but taken off. The listing realtor said that the property was very difficult to market because most banks would not lend on a property like this in its current condition. Anyone have any suggestions on this one? The appraisal is an REO.
 

Lloyd Bonafide

Senior Member
Joined
Jan 15, 2006
Professional Status
Certified Residential Appraiser
State
California
I am appraising a one level condominium with some structural issues. The floors are uneven resulting in a possible saftey issues. The floors are around 6-10" uneven from side of the unit to the other. All of the interior doors stay open and the sliding glass door does not close properly. The HOA is currently not taking any action to correct the problem. The property was listed but taken off. The listing realtor said that the property was very difficult to market because most banks would not lend on a property like this in its current condition. Anyone have any suggestions on this one? The appraisal is an REO.

6-10" difference from one side to the other? That is a lot. I would assume that the building has a crawl space or a parking area below it instead of a slab. You say that the HOA is currently not taking any action to correct the problem. The first thing I would do would be to find out if the HOA is responsible to fix a problem like this.
 

Ariba

Senior Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Colorado
I am appraising a one level condominium with some structural issues. The floors are uneven resulting in a possible saftey issues. The floors are around 6-10" uneven from side of the unit to the other. All of the interior doors stay open and the sliding glass door does not close properly. The HOA is currently not taking any action to correct the problem. The property was listed but taken off. The listing realtor said that the property was very difficult to market because most banks would not lend on a property like this in its current condition. Anyone have any suggestions on this one? The appraisal is an REO.

Report what you have observed, call for a structural inspection by a qualified structural engineer, and mark appraisal "subject to the following required inspection"
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
Report what you have observed, call for a structural inspection by a qualified structural engineer, and mark appraisal "subject to the following required inspection"

Most lenders don't want a "subject to" on an REO. But if you can get away it, I'd do what Ron said, remembering that on the report it reads "subject to the following required inspection based on the extraordinary assumption that the condition of the deficiency does not require alteration or repair."

If they insist on an "as is" value, as for an estimate on the repair, directly from your client, before proceeding.

Are any of the other units so affected? In my area where had projects hit by sink holes. If this is a similar problem, building to building that is affected, call the association and ask if they know which buildings have been affected, when it was first reported in each, and then look for sales in those buildings after those dates. You can also just look at values in the project from the dates before the problems occured and compare them to the date after. Usually, a structural problem like that will cause buyers to think it is universal in the project, and it can effect all sales if it is disclosed openly.
 

Jeff Le Monds

Thread Starter
Freshman Member
Joined
Feb 20, 2006
Professional Status
Certified Residential Appraiser
State
Colorado
6-10" difference from one side to the other? That is a lot. I would assume that the building has a crawl space or a parking area below it instead of a slab. You say that the HOA is currently not taking any action to correct the problem. The first thing I would do would be to find out if the HOA is responsible to fix a problem like this.


The subject is located on the top level of a 3 story building. The HOA has no intention of correcting the problem because they said that several structural engineers have inspected the buildings and determined that the buildings were not in jeopardy of collapsing. It looks like HOA will not be doing anything to fix the problem. Difficult to prove that there would be any nominal value for this property in its current condition.
 

Ariba

Senior Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Colorado
The subject is located on the top level of a 3 story building. The HOA has no intention of correcting the problem because they said that several structural engineers have inspected the buildings and determined that the buildings were not in jeopardy of collapsing. It looks like HOA will not be doing anything to fix the problem. Difficult to prove that there would be any nominal value for this property in its current condition.

If it is on the third level makes me wonder what the ceiling looks like in the unit below the subject.

Get a copy of the structural engineering report. What does the structural engineering say on the cause of the foundation problem and/or say about the sloping floors? However, no matter what the structural engineer report says about the building, common sense tells you that a 6" slope is a major issue and you are not qualified to estimate the cost to cure.

Most lenders don't want a "subject to" on an REO.

Since when does the appraiser care what the lender wants if it creates a misleading appraisal report? It is your appraiser license.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks