Could The Subject Be Rebuilt On Same Foundation/footprint If Destroyed?

[Doug in NC]

Is this really a question that should be asked of an appraiser? Seems like a question for the permits department. Damn, it's one thing to address whether the property meets basic requirements of the zoning, but to ask the appraiser for a blanket statement on whether or not a house could be rebuilt if destroyed seems a real stretch. Ultimately, it seems to me this is an attempt by the lender to shift liability to the appraiser's E&O if there ever is a catastrophic destruction of the house (ie. a hurricane) Have any of you other appraisers ever been asked to provide this certification in your appraisal report?

 

[glenn walker]

Normally the lender requests the homeowner to obtain a rebuild letter from the city or county but it's easier to ask the appraiser so that's what they do. I would ask the lender to contact the owners and have them get the rebuild letter from their City or County. In some of the Cities I work it can be as much as $300.00 for a rebuild letter.

 

[Vermonter]

Have any of you other appraisers ever been asked to provide this certification in your appraisal report?

Yes, and I never do.

Tell them you can submit a request to the zoning department....that should take 4-6 weeks if they want to wait.

 

[Bobby Bucks]

Ultimately, it seems to me this is an attempt by the lender to shift liability to the appraiser's E&O if there ever is a catastrophic destruction of the house (ie. a hurricane)

I'm sure the client will state that they want to minimize their risk, but I would contend that any client requiring the statement will also require a copy of the E & O policy in the report, I despise clients that play that game.

 

[RSW]

The only time I get that question is when the subject property is grandfathered in to a zoning use or if there has been an addition built without permits. I usually call the building permit department to get that info..

 

[TRESinc]

The only time I get that question is when the subject property is grandfathered in to a zoning use or if there has been an addition built without permits. I usually call the building permit department to get that info..

yep, same here. then add a statement to the report along the lines of "the lender requested this information. per mary jones of racoon city zoning dept it can/cannot be rebuilt"

 

[Doug in NC]

The only time I get that question is when the subject property is grandfathered in to a zoning use or if there has been an addition built without permits. I usually call the building permit department to get that info..

The really odd thing is, this property is only 3 years old and is in a huge planned development that is only about 8 years old. I called the planning dept. and discussed what the lender wanted, and the lady there suggested only that she could offer a "letter of interpretation" for that property address. I forwarded her information to the lender and we'll see what happens. I've completed thousands of appraisals before in my lifetime and I have never been asked to certify a rebuild before (Not planning on starting this year either.).

 

[J Grant]

The really odd thing is, this property is only 3 years old and is in a huge planned development that is only about 8 years old. I called the planning dept. and discussed what the lender wanted, and the lady there suggested only that she could offer a "letter of interpretation" for that property address. I forwarded her information to the lender and we'll see what happens. I've completed thousands of appraisals before in my lifetime and I have never been asked to certify a rebuild before (Not planning on starting this year either.).

Perhaps they are asking it because of recent storm damage in NC ?

 

[hastalavista]

The really odd thing is, this property is only 3 years old and is in a huge planned development that is only about 8 years old. I called the planning dept. and discussed what the lender wanted, and the lady there suggested only that she could offer a "letter of interpretation" for that property address. I forwarded her information to the lender and we'll see what happens. I've completed thousands of appraisals before in my lifetime and I have never been asked to certify a rebuild before (Not planning on starting this year either.).

I find that when I include a summary of the zoning (with a discussion of the development standards consistent with AO-11 and its zoning summary example) no one asks about rebuild unless the improvement is non-conforming.
And, in that case, I do what RSW and Randolph advised, or I excerpt the relevant non-conforming zoning language from the ordinance in my report. I always advise that if they need a level of confirmation greater than what I can supply, that they should obtain a rebuild letter from the appropriate jurisdiction to satisfy their concerns.
I don't see any extra risk in following that process; in fact, I see it as reducing my risk to near zero: I've cited the code, referred to the relevant sections, made my conclusion (which is consistent with the SOW and expectations of the users for this type of assignment as well as my peers), and I've referred the client to the appropriate source for further confirmation if it concludes additional confirmation is prudent. I've "layed it out". The lender is a sophisticated user of appraisals and has the wherewithal to take the information, read and understand it, and can determine if they should accept/rely on it as-presented or go to the next level as I have advised in the report.
Done deal.

 

[Mark K]

The only time I get that question is when the subject property is grandfathered in to a zoning use or if there has been an addition built without permits. I usually call the building permit department to get that info..

I've received the same request when I indicate legal, non-conforming (grandfathered), usually for sites that are smaller than currently required.

A call to the county planning/building dept results in a response something along the lines of..."You'll need to have a surveyor visit the site and provide us with a site plan that shows the property lines, the house location, the front/side/rear setback distances, well and septic locations, building size, easements, etc. before we can make that determination".

Needless to say, I have the page in the zoning book available regarding rebuilds and send it to them and if they want more, they're on their own.