Cost to Connect to Sewer

[Zoe]

On MV value definition, you can't do "as is" if jurisdiction requires it connected. That won't work. Can't do hypothetical condition either. Extraordinary assumption might be possible for your client. Extraordinary assumption is real risky too for your client.

 

[Jayjay25]

It is the MORTGAGEE’S responsibility to determine feasibility, not the appraiser’s. Comment that it is available, comment on FHA’s feasibility requirement, complete appraisal as is. Most lenders are lazy and try and pass the buck to the appraiser. A gentle reminder that it is the MORTGAGEE’S responsibility works 99%of the time.

 

[Zoe]

It is the MORTGAGEE’S responsibility to determine feasibility, not the appraiser’s. Comment that it is available, comment on FHA’s feasibility requirement, complete appraisal as is. Most lenders are lazy and try and pass the buck to the appraiser. A gentle reminder that it is the MORTGAGEE’S responsibility works 99%of the time.

But on MV value definition, and jurisdiction, it requires appraiser to analyze if the conditions are "as is". Appraiser is always responsible for SOW. Okay, if jurisdiction requires subject to be connected to public sewer before subject can be transferred, the MV definition requires a "subject to" appraisal. That's it. It ties to H&B use too. So be careful

 

[glenn walker]

Post #8 walks you through what HUD requires : Read it - And no the appraiser does not determine if its a required hook-up. The appraisers only responsibility is to answer if there is a public sewer system available. If he/she checks the yes box ? Then the FHA DE-Underwriter will ask the homeowner or someone to inquire with City or County as to feasibility and cost. If the estimate given to the Underwriter is less than 3% of-value and if the existing septic system is in good working order then she will normally waive the connection. Note: In A City-County with mandatory hook-ups those normally only apply on sale's or transfers of title and not refinances.

 

[Zoe]

I have talked with VA on it. If jurisdiction requires it, it is "subject to". No if ands or buts. The seller, buyer, homeowner has to connect. It is an MPR. That rhymes with both H&B use analysis and MV definition. End of story with me. On "subject to", costs to correct is not an issue to appraiser. Cost to correct doesn't matter on "subject to".........to the appraiser. Have to protect your client and in doing so you protect others as well.

 

[RSW]

But on MV value definition, and jurisdiction, it requires appraiser to analyze if the conditions are "as is". Appraiser is always responsible for SOW. Okay, if jurisdiction requires subject to be connected to public sewer before subject can be transferred, the MV definition requires a "subject to" appraisal. That's it. It ties to H&B use too. So be careful

What if you are doing an FHA refinance appraisal?

 

[Zoe]

What if you are doing an FHA refinance appraisal?

I would say yes and the appraiser makes the call. Because it will impact transfer of property rights if jurisdiction requires it for property to transfer. That will rhyme with H&B use and MV definintion.

 

[Zoe]

FHA (client) will be happy if you protect them.

 

[Zoe]

Look at it this way. Most lenders want to make all loans .......especially with secondary market. You have to educate many. That's it. They don't have the education, experience, knowledge you have on appraisals.

 

[Mike Garrett RAA]

In my market it is usually "not feasible". Have seen costs from $10,000 to $100,000 depending on the distances involved.