Cost to cure 'as is' question

[Civic]

NO!!! You still do not get it - "AS IS" means there is no hypothetical that it is average!! The whole point of "AS IS" means the subject property as it exists on date you inspected - if it is in poor condition, then it goes on teh grid in poor condition. Your comps ideally are in similar poor condition, but if you cant' find any, then find comps in fair or average condition and adjust down for condition.

The cost to cure is for client purpose just to get an estimate of what it might cost to make the repairs noted. It is not adjusted for - but if you want to adjust for cost to cure instead of for condition, then do so, but "AS IS" still means the subject is on grid in its existing poor condition.

If client wants two values one value in, " as is -poor condition" and a second value "as repaired to hypothetical average condition" then you can give them two different values.

Makes sense, but i think they will cancel it since they said lenders don't lend om c5 conditions, oh well , i guess i will just get a trip fee, since i am not comfortable Stating AvG cond. On order form it did not state that C5 to not proceed but now they tell me it is a no go.

 

[J Grant]

Makes sense, but i think they will cancel it since they said lenders don't lend om c5 conditions, oh well , i guess i will just get a trip fee, since i am not comfortable Stating AvG cond. On order form it did not state that C5 to not proceed but now they tell me it is a no go.

I asked you earlier in thread about C 5 and UAD and you said it is not a UAD report-that it is a private lender 1025 form not UAD -this is a mess wrt your understanding the assignment.

If it is UAD,, tell client what you found at inspection - some lenders accept C5 and will lend on it " as is", others want report made hypothetical C5 subject to repair to bring it into C4 ( average) condition.- then they would expect repairs to be made and you would go back and do a 1004 D completion.

 

[Civic]

I asked you earlier in thread about C 5 and UAD and you said it is not a UAD report-that it is a private lender 1025 form not UAD -this is a mess wrt your understanding the assignment.

If it is UAD,, tell client what you found at inspection - some lenders accept C5 and will lend on it " as is", others want report made hypothetical C5 subject to repair to bring it into C4 ( average) condition.- then they would expect repairs to be made and you would go back and do a 1004 D completion.

It is 1025, i just said c5 here for simpliciy, but yes,, they just said Poor cond is a no go, they don't do 'subject to', only as is & it has to to be min Avg, oh well, it happens-) im not comfortable stating Avg as is.

 

[J Grant]

It is 1025, i just said c5 here for simpliciy, but yes,, they just said Poor cond is a no go, they don't do 'subject to', only as is & it has to to be min Avg, oh well, it happens-) im not comfortable stating Avg as is.

Then tell them it is poor condition and let them cancel. I agree, I would not be misleading and call it average.

 

[shrubberyvaluation]

It is 1025, i just said c5 here for simpliciy, but yes,, they just said Poor cond is a no go, they don't do 'subject to', only as is & it has to to be min Avg, oh well, it happens-) im not comfortable stating Avg as is.

Seems silly they need you to lie to do the loan. That is on them. They won't have your back if it gets foreclosed on.

 

[Civic]

Seems silly they need you to lie to do the loan. That is on them. They won't have your back if it gets foreclosed on.

I politely told them i would not be able to do that, seems they understand.

 

[Mark K]

It doesn't make sense to mark it "Avg" AND include either a C2C or a condition adjustment. If you call it avg, why would you include an adjustment, unless all of your comps are superior?

Telling them to find another appraiser was the best choice. If they want to lend on a POS, let someone else take the risk.

In the 'good ol' days, you could just call it avg. and call the comps superior and make the adjustment. After all, it is avg. compared to other POS properties.

 

[Civic]

It doesn't make sense to mark it "Avg" AND include either a C2C or a condition adjustment. If you call it avg, why would you include an adjustment, unless all of your comps are superior?

Telling them to find another appraiser was the best choice. If they want to lend on a POS, let someone else take the risk.

In the 'good ol' days, you could just call it avg. and call the comps superior and make the adjustment. After all, it is avg. compared to other POS properties.

They just advised me that it is officialy cancelled. On order form it did not state to stop work if in Poor cond, i asked if i can at least get half the fee, but most likely that will be ignored. Oh well, such is life for us "independent" appraisers-)