Conventional

[TerryRohrer]

 

[sputnam]

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?

Is the Seller your Client? If not, it doesn't matter how he/she wants you to do the appraisal. You can do the appraisal either as is or subject to a new roof.... Ask your Client what they want.

 

[Zoe]

I would convince my client it needs to be subject to due to expert roofer. Also subject to final inspection by appraiser. If I don't do final inspection, the appraisal is null and void.

That is the terms written in the appraisal. I am going to get my 1004D money.

 

[JTip]

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?

I bet the "seller" you reference is NOT the lender for the "conventional" loan.

The bank is the client, the seller wants what the seller wants, but who cares what the seller wants.

 

[shrubberyvaluation]

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?

What does the client want?

 

[Tom D]

I always do what the seller wants. What difference does it make if the seller is going to fix it anyway before settlement. And if they don't fix it and leave with the money for another state after settlement, you can then learn to nail shingles. So do as the sellers says as is and make the value lower than the sale price. That will make the seller shut up.

This is a bizzarro answer to a bizzarro appraiser thought. But good for asking, definitely an existential threat leading to your pain.

 

[Tom4value]

It is up to your client whether the appraisal should be done AS IS, or made subject to a new roof being installed.
I bet the appraisal needs to be done "as is ", but ASK YOUR CLIENT.

A sale contract is between the buyer and the seller. We do not appraise according to what a sales contract says. Our obligation is to analyze the contract for page one of the appraisal report.

I am 100% with you on the first point; the client determines the parameters, not the seller. However, in 100% of the purchases I have done, terms in the contract need to be factored into the appraisal. That falls under the “analysis of the contract”, which is what we must do. Also, 100% of the time, that is what the client wants.

 

[Mike Ault]

Is the Seller your Client? If not, it doesn't matter how he/she wants you to do the appraisal. You can do the appraisal either as is or subject to a new roof.... Ask your Client what they want.

What if the client intends to sell the loan to the GSE's? (A fact we need to be aware of prior to accepting the assignment). Would you still say that it's okay to do the appraisal "as is" knowing that it has a defective roof?

 

[Terrel L. Shields]

You can do the appraisal either as is or subject to a new roof..

Conventional can be conforming (secondary market) or non-conforming (in house bank). The in-house banker requires an "as is" value under FDIC rules. And that can be in addition to the "subject to repairs" value. But again, the FDIC REQUIRES an "as is" value in all appraisals. Ask @BRCJR - he is a banker.

 

[Fernando]

View attachment 106719

King Appraiser will keep that in mind.