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Curling Comp Shingle Roof Question For Conventional Loan

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Nevada Life

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Certified Residential Appraiser
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Nevada
A large portion of the comp shingles are curling. I did not note any moisture stains on the ceiling.

Would you complete report "as-is" with the above statement and let the lender decide?

OR make appraisal subject to an extraordinary assumption that the roof does not require repair and obtain a clear inspection from a qualified 3rd party?

If I go "as-is" or "subject to extraordinary assumption" I have taken into account the subject's roof condition on the grid.
 

Terrel L. Shields

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state the roof has curling shingles and recommend a roof inspection. Assume it is at the end of its economic life and would be replaced if put on the market
 

Nevada Life

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Mar 14, 2014
Professional Status
Certified Residential Appraiser
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Nevada
state the roof has curling shingles and recommend a roof inspection. Assume it is at the end of its economic life and would be replaced if put on the market

this is for a purchase. the sellers are offering a $2,500 credit to replace the roof. so now that I think about it more, shouldn't it be subject to the roof replacement or repair?
 

Terrel L. Shields

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You can estimate the cost of replacing the roof. If over $2500, adjust anyway. Their agreement is their problem. You can ask your insurance man & I bet he knows or can estimate a cost.
 
D

Deleted member 130081

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If you have no reason to think your lender client would prefer otherwise, I think you could make it as-is. I am not aware of any conventional underwriting rule that disqualifies a potential problem, though maybe there is such a rule? So as long as you don't have any issue other than an old roof, and it sounds like you don't, you likely have a valuation issue, possibly a marketability issue too. Around here, the roof would be conditioned for repair in the contract or the price would be reduced in virtually all cases. I see no reason why a cost-to-cure sales grid adjustment would not be appropriate, as that's how buyers usually deal with it too.

There are some other reasons for pause. If you did not look in the attic, it is possible it has been leaking and there is structural damage. This is not likely, but it is far from unheard of. That's the reason to recommend an inspection, but not necessarily require one - that might be an appraiser and/or lender preference there. Now if the home is old and/or shows other signs of suspected deferred maintenance or physical depreciation, then maybe all bets are off and an inspection is the best course moving forward. I think this is a case where your experience of homes comes into play and you just have to make a call.

Most important thing is to factually disclose the situation in the report - what you have, how it affects things in your market, etc. A call to your client may keep you from a revision after.
 
D

Deleted member 130081

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this is for a purchase. the sellers are offering a $2,500 credit to replace the roof. so now that I think about it more, shouldn't it be subject to the roof replacement or repair?

Unless its a very small house, $2500 might not even cover materials.
 
D

Deleted member 130081

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I post too slow. In this case you likely have an inspection report floating around and a property condition disclosure - those two things should help. From there you are likely to be able to determine if further inspection is needed. The valuation part is pretty simple, one way or the other, as-is or subject-to, the cost of cure is the likely difference - unless it is custom for the buyers and sellers to split such costs at sale? $2500 seems about half price or less, again unless the house is very small and easy to roof. Even the illegal crews around here charge more than that.
 
D

Deleted member 130081

Guest
this is for a purchase. the sellers are offering a $2,500 credit to replace the roof. so now that I think about it more, shouldn't it be subject to the roof replacement or repair?

You can do it either way. Subject-to is an opinion if the roof were already fixed (hypothetical) and as-is would be an opinion if its not - the credit amount is between the buyer and seller, not necessarily equal to market reaction.
 

bnmappraisal

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Florida
this is for a purchase. the sellers are offering a $2,500 credit to replace the roof. so now that I think about it more, shouldn't it be subject to the roof replacement or repair?
What's your client say?

I've had a similar situation twice in the past 3 months (roof being replaced/credit given between buyer/seller). I asked the client and both times they said to complete SUBJ TO new roof

So check with your client - I'd bet they want it SUBJ TO the new roof. Roof gets completed in the next week(s) and you go back for the FInal
 

timd354

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Jan 11, 2008
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Maryland
this is for a purchase. the sellers are offering a $2,500 credit to replace the roof. so now that I think about it more, shouldn't it be subject to the roof replacement or repair?
Assuming that this is an appraisal for a GSE loan, the answer to your question is spelled out right in the Fannie Mae Selling Guide, which specifically addresses what needs to be done when the property has curled or cupped roof shingles.

Crack open the guidelines....it should not take more than about 60 seconds for you to find the answer.
 
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