Cost to cure 'as is' question

[Civic]

If subject property is in a Poor Condition with approximate 30k Cost to cure to make it Average livable. Do we indicate Current Condition as Poor and subtract cost to cure from comps on grid? A lender told me that since it is appraised 'as is' with Cost to cure to Indicate it as Average & adjust comps for cost to cure. I thought if its currently Poor cond, we still indicate Poor & do adj for cost to cure for comps even if its not 'subject to'.

 

[Terrel L. Shields]

I don't want to do any of that without them providing me a cost to cure. $30k is far too much to be lump sum adjusting anything. So it is NOT "as is" when you do that.. "As is" the cost to cure has to be subtracted. Personally, I would withdraw from such an assignment.

 

[Civic]

I don't want to do any of that without them providing me a cost to cure. $30k is far too much to be lump sum adjusting anything. So it is NOT "as is" when you do that.. "As is" the cost to cure has to be subtracted. Personally, I would withdraw from such an assignment.

Agree, however if i comment that appraiser is not a licensed contractor & only giving estimate & if after contractor provides exact cost to cure, value may be reconsidered. My main issue is how can i just state it's average at present when it's poor? But they say 'as is' with cost to cure covers that. Had it been subject to then they say i should state Poor.

 

[Terrel L. Shields]

You should evoke a hypothetical condition that is a consideration that the value "as is" does not reflect the actual condition used. It is more like a new construction assignment.

 

[shrubberyvaluation]

If subject property is in a Poor Condition with approximate 30k Cost to cure to make it Average livable. Do we indicate Current Condition as Poor and subtract cost to cure from comps on grid? A lender told me that since it is appraised 'as is' with Cost to cure to Indicate it as Average & adjust comps for cost to cure. I thought if its currently Poor cond, we still indicate Poor & do adj for cost to cure for comps even if its not 'subject to'.

The grid is for market reaction, not cost. If it is as-is you are appraising it in its current condition.

 

[Civic]

The grid is for market reaction, not cost. If it is as-is you are appraising it in its current condition.

It's very confusing. I wish they just said do subject to. But it is not unsusual to subtract cost to cure as adj in comps grid, i recall many lenders request it, never had issues with proper comments.

 

[J Grant]

Since you mention a lender, is it a UAD compliant assignment ordered on the URAR form ? If it is, what is the "poor " condition - C 5 or C 6?

 

[Civic]

Since you mention a lender, is it a UAD compliant assignment ordered on the URAR form ? If it is, what is the "poor " condition - C 5 or C 6?

It's a private lender on 1025 form multi fam

 

[J Grant]

I provide cost to cure as an estimate for client understanding of what the cost to fix or update would be -t I do not adjust for C2C on the grid, I adjust for market reaction to the condition -

If it is as is in poor condition, then try to use other poor condition comps. If it is subject to repair or updates to get it to average condition, then use average condition comps.

 

[Civic]

I provide cost to cure as an estimate for client understanding of what the cost to fix or update would be -t I do not adjust for C2C on the grid, I adjust for market reaction to the condition -

If it is as is in poor condition, then try to use other poor condition comps. If it is subject to repair or updates to get it to average condition, then use average condition comps.

Right on. Thats what i told them, but they keep saying Cost to cure 'as is' means it is 'average' since it is aknowldeged & subtracted from comps as they don't have it. There are Zero similar comps. Only 1 listing that says needs rehab.