Conventional Purchase - Water Utilities Off

[Tumbuktu]

Property is Vacant. Everything else is fine. Electricity is on. HVAC is working. Only Water was not on. Does conventional appraisal also need Hypothetical Condition in this case.
As always feedback and guidance would be appreciated.

 

[J Grant]

Property is Vacant. Everything else is fine. Electricity is on. HVAC is working. Only Water was not on. Does conventional appraisal also need Hypothetical Condition in this case.
As always feedback and guidance would be appreciated.

As far as I am aware, no. Most lenders do not require the water to be on in a conventional purchase, though there can be an exception

Why would an appraiser make an HC? The water is either on or it is not on when we inspect. I would not volunteer to make an HC that the water is working. We do not know of it is.. IDK why appraisers volunteer to take on that kind of liability when nobody is asking for it. The URAR form generally prohibits adding an HC ( unless the report is made subject to the HC being satisfied)

 

[Tumbuktu]

Thanks for an elobrate response. Is is worth putting a comment in the report about it.

 

[Dublin ohio]

Property is Vacant. Everything else is fine. Electricity is on. HVAC is working. Only Water was not on. Does conventional appraisal also need Hypothetical Condition in this case.
As always feedback and guidance would be appreciated.

Check your loe and any other lender/AMC requirements. Most of my clients want to know whether or not all utilities were on and functioning.

 

[Tom D]

Just state water wasn't on, if it bothers you so. If lender wants it on, they will tell you. I think most conv lenders don't care.

 

[Joe Flacco]

How do you know the plumbing is functional if the water is not on?

 

[glenn walker]

We turn off water at meter on. Vacant homes so no vandals can't flood them etc..You sure Waters off or just off at a valve ? Anyways no HC ....lol )

 

[sputnam]

Property is Vacant. Everything else is fine. Electricity is on. HVAC is working. Only Water was not on. Does conventional appraisal also need Hypothetical Condition in this case.
As always feedback and guidance would be appreciated.

No. And, it wouldn't be a hypothetical condition. If you wanted to, you could use an extraordinary assumption... although, all that's needed is to state that the water wasn't turned on at the time of your inspection.

 

[J Grant]

How do you know the plumbing is functional if the water is not on?

We are not attesting that the plumbing is functional. Not our job; we are not home inspectors. nor plumbing inspectors.

 

[J Grant]

Thanks for an elobrate response. Is is worth putting a comment in the report about it.

The comment:

"The water was not on at the time of inspection. "

That's all. You disclosed what you saw at our inspection.