Conventional

[Zoe]

Why would you need to do both?

I wouldn't. I would do subject to. If I did both, I would charge more.

Many commercial assignments require both "as is" and "subject to". I don't think this assignment requires that.

 

[Zoe]

BTW, I would charge to go back for 1004D and inspect the roof after I received confirmation from client.

 

[J Grant]

The client won't be able to broker the loan to most typical secondary market investors in "as is" condition if the appraiser does the correct thing and marks "yes" to the physical deficiencies checkbox on the first page of the URAR, so the decision-making takes care of itself. Now, if they are holding the loan in-house it's a whole different matter and they can deal with that pesky checkbox being correctly marked.

Whether the lender/client can broker the loan on the secondary market is not our problem.

We need to ask the client how they want it done. ( fwiw, If this is a sale, the owner may or may not be in a position to put in a new roof before closing)

The appraiser only gets involved in the condition if it is a safety/repair issue. Many houses may need a new roof or be due for one, yet the existing roof is still functional.

 

[J Grant]

Look at it from buyer perspective. Buyer and seller can negotiate on closing date. People roof a house in a day.

Me, I would do subject to. If you don't do subject to then you need to do both as is and subject to for your client.

I can't complete an appraisal in a day anymore. Roofers with several people working can do a roof in a day. Tear off and whole job.

Especially if they are mexicans. Mexicans can crawl that roof like squirrel.

Some appraisers confuse sale contracts with what is needed or should be done on the appraisal. The sale contract is for the terms and performance between buyer and seller. We are either appraising per the client order and if there are any repair/safety issues that WE see, we for a lender conventional loan appraise the property AS IS ( what exists on the effective date -- regardless of what the contract says ), or subject to an appraiser-specified repair, addition, or replacement.

 

[Dublin ohio]

Some appraisers confuse sale contracts with what is needed or should be done on the appraisal. The sale contract is for the terms and performance between buyer and seller. We are either appraising per the client order and if there are any repair/safety issues that WE see, we for a lender conventional loan appraise the property AS IS ( what exists on the effective date -- regardless of what the contract says ), or subject to an appraiser-specified repair, addition, or replacement.

Since the OP already said the roof needs replaced. In this case it appears to be a distinction without a difference

 

[J Grant]

Since the OP already said the roof needs replaced. In this case it appears to be a distinction without a difference

The SALE CONTRACT promises a new roof.

The appraiser would call for a new roof (or insect and repair a roof )r if they observe damage/ a health and safety issue. It is not clear from their post if that is the case with the roof.

 

[Dublin ohio]

The SALE CONTRACT promises a new roof.

The appraiser would call for a new roof (or insect and repair a roof )r if they observe damage/ a health and safety issue. It is not clear from their post if that is the case with the roof.

I'm working on an assignment for conventional 1004. The subject needs a new roof

Seems pretty clear to me

 

[Mike Ault]

Whether the lender/client can broker the loan on the secondary market is not our problem.

We need to ask the client how they want it done. ( fwiw, If this is a sale, the owner may or may not be in a position to put in a new roof before closing)

The appraiser only gets involved in the condition if it is a safety/repair issue. Many houses may need a new roof or be due for one, yet the existing roof is still functional.

We need to know who the ultimate investor of the loan is prior to completing the assignment. If that appraisal is destined for one of the GSE's, then the appraisal cannot be done "as is" without lying about the roof. It doesn't matter how the client who ordered the appraisal "wants it done" if we know they're going to sell the loan to someone who does not accept properties with defective roofs. Such as "the GSE's".

 

[J Grant]

We need to know who the ultimate investor of the loan is prior to completing the assignment. If that appraisal is destined for one of the GSE's, then the appraisal cannot be done "as is" without lying about the roof. It doesn't matter how the client who ordered the appraisal "wants it done" if we know they're going to sell the loan to someone who does not accept properties with defective roofs. Such as "the GSE's".

Nobody is recommending lying about the roof!

The OP is not telling us what condition the roof was in on the inspection date.
All they said is "the subject needs a new roof." Why? Did the appraiser observe any roof or water damage?

Then they go on to say the sale contract calls for a new roof.

A roof can be near the end of its economic life but still functional. Appraisers can ask for a roof inspection or repair if they see damage or leaks. Does an appraiser get to ask for a new roof ? What gives them that power? Unless the roof is in such poor condition that it is a safety hazard.

 

[Mike Ault]

I'm working on an assignment for conventional 1004. The subject needs a new roof and the contract states that the seller is having a new roof installed. The seller wants as is but shouldn't this be subject to?

Nobody is recommending lying about the roof!

The OP is not telling us what condition the roof was in on the inspection date.
All they said is that the sale contract calls for a new roof.

The OP clearly indicated what condition the roof was in on the inspection date.