condo as-is with broken project HVAC

[maugust]

So I inspected this condo in a high rise building. The project is currently updating the HVAC system. When I came to the property, the heating/cooling system was literally pulled out from the wall. So the unit has no heating and cooling currently. I tried to complete the report subject to repair, but the client wants it as-is. I'm not quite sure how to treat that. The heating/cooling unit is the responsibility of the project. But just because the HVAC is not the responsibility of the individual unit itself doesn't mean that it wasn't pulled out from the wall and sitting in the middle of the living room floor when I inspected the property.

This isn't something that can be bracketed by a comparable. Even with this property, it's going to be fixed by the project and not impact the contract itself since it's not the responsibility of the owner to fix it. Can I value this while just ignoring this issue?

 

[Tim The Enchanter]

You can't ignore, but an as is value is just silly.

 

[maugust]

Guess I should tell the client they're being silly.

 

[Terrel L. Shields]

Value it "as is" - deduct cost to cure from the value estimated from other intact sales. And then wait for the squawks and bawls of the lender.

 

[J Grant]

So I inspected this condo in a high rise building. The project is currently updating the HVAC system. When I came to the property, the heating/cooling system was literally pulled out from the wall. So the unit has no heating and cooling currently. I tried to complete the report subject to repair, but the client wants it as-is. I'm not quite sure how to treat that. The heating/cooling unit is the responsibility of the project. But just because the HVAC is not the responsibility of the individual unit itself doesn't mean that it wasn't pulled out from the wall and sitting in the middle of the living room floor when I inspected the property.

This isn't something that can be bracketed by a comparable. Even with this property, it's going to be fixed by the project and not impact the contract itself since it's not the responsibility of the owner to fix it. Can I value this while just ignoring this issue?

No you can not ignore it. As is, means what it says, disclose that day of inspection the HVAC system was pulled out and being updated by the project. Are ALL the condo units in the subject building undergoing this same updating? If yes, then no need to deduct a cost to cure for the other units in subject building as comps if, they are all undergoing replacement. For units outside the building or that have AC already done, you can just opine slightly lower on the subject and explain why, (or adjust, your call, ) and explain that though the unit was pulled out , it was in process of being updated ( was an assessment paid for the update and it is a repair , or replacement ?)

The definition of market value - a well informed /well advised buyer. A buyer for subject would know that the HVAC is being replaced/updated by the condo, so why would you make a cost to cure adjustment for something in the process of being "cured " ( and likely paid for in an assessment, need to find that out )

 

[glenn walker]

It's a repair and yes you can do it "as is". Just report what you stated and be done and no there is no adjustment to be made.

 

[Carnivore]

No you can not ignore it. As is, means what it says, disclose that day of inspection the HVAC system was pulled out and being updated by the project. Are ALL the condo units in the subject building undergoing this same updating? If yes, then no need to deduct a cost to cure for the other units in subject building as comps if, they are all undergoing replacement. For units outside the building or that have AC already done, you can just opine slightly lower on the subject and explain why, (or adjust, your call, ) and explain that though the unit was pulled out , it was in process of being updated ( was an assessment paid for the update and it is a repair , or replacement ?)

The definition of market value - a well informed /well advised buyer. A buyer for subject would know that the HVAC is being replaced/updated by the condo, so why would you make a cost to cure adjustment for something in the process of being "cured " ( and likely paid for in an assessment, need to find that out )

Great Answer above... Its reasonable to say All the Units are suffering the same problem, but are on a different replacement date schedule; Depending on Time Frame the Adjustment may already be baked into the Comparable Sale. Especially the ones that have not been replaced yet.

 

[J Grant]

Great Answer above... Its reasonable to say All the Units are suffering the same problem, but are on a different replacement date schedule; Depending on Time Frame the Adjustment may already be baked into the Comparable Sale. Especially the ones that have not been replaced yet.

yes

 

[Carnivore]

So a Trip or call to the Building Maintenance or Condo-association may get the time schedule. If this is a fairly large/tall Tower I can't imagine this condition of the subject taking very long to complete. It makes sense that this is on fairly organized and strict schedule. For that matter I would bet it may already be completed.

 

[glenn walker]

The unit was being worked on or replaced when the appraiser did the inspection, and thats how he/she even knew about it. Geez all the appraiser had to do is ask the owner, buyer, seller , a neighbor when is the repair going to be completed and we all wonder why lenders are going to PIW'S and AVM'S