Curling Comp Shingle Roof Question For Conventional Loan

[timd354]

You can do it either way.

Not if it is an appraisal for a loan being sold to Fannie Mae. You guys all really need to take a look at the Fannie Mae Selling Guide, which specifically addresses the appraisal requirements for properties with curled or cupped roof shingles. A search of the Fannie Mae Selling Guide should yield the correct answer in less than 1 minute.

 

[residentialguy]

Not if it is an appraisal for a loan being sold to Fannie Mae. You guys all really need to take a look at the Fannie Mae Selling Guide, which specifically addresses the appraisal requirements for properties with curled or cupped roof shingles. A search of the Fannie Mae Selling Guide should yield the correct answer in less than 1 minute.

Let's say you think the roof has to be repaired, so you base your report on the roof having been repaired. You assume they will re-roof the home and you proceed with that hypothetical mind set on your appraisal and value the home as one with a new $5,000 roof on it. Client sends you a 1004d final, you go out there on your final inspection and to your surprise they only replaced the curled shingles and it looks like crap...but the HO has satisfied your condition. Now the fun part. You appraised the home as having a nice new roof which contributed to a higher value. Their repair did not contribute to higher value. What are you going to do on that 1004D and your appraisal which is not a true reflection of the subject?

 

[timd354]

Let's say you think the roof has to be repaired, so you base your report on the roof having been repaired. You assume they will re-roof the home and you proceed with that hypothetical mind set on your appraisal and value the home as one with a new $5,000 roof on it. Client sends you a 1004d final, you go out there on your final inspection and to your surprise they only replaced the curled shingles and it looks like crap...but the HO has satisfied your condition. Now the fun part. You appraised the home as having a nice new roof which contributed to a higher value. Their repair did not contribute to higher value. What are you going to do on that 1004D and your appraisal which is not a true reflection of the subject?

If I appraised the subject property and valued it as if it had a new roof, then my hypothetical condition would have specified that a new roof had to be installed, so I would not have any problem and would not sign off on an approval if a new roof was not installed. Your question highlights why it is very important for appraisers to be very careful and specific in how they draft their hypothetical conditions.

 

[residentialguy]

If I appraised the subject property and valued it as if it had a new roof, then my hypothetical condition would have specified that a new roof had to be installed, so I would not have any problem and would not sign off on an approval if a new roof was not installed. Your question highlights why it is very important for appraisers to be very careful and specific in how they draft their hypothetical conditions.

Did you also request a tiled roof or architectural 3 D shingles and adding a few hips while you're at it? So when did we get the power to tell the home owner how to fix a problem? Appraisers are required to report issues that need to be corrected and condition the report to the issues being resolved, not tell them how to fix them.

 

[timd354]

Did you also request a tiled roof or architectural 3 D shingles and adding a few hips while you're at it? So when did we get the power to tell the home owner how to fix a problem? Appraisers are required to report issues that need to be corrected and condition the report to the issues being resolved, not tell them how to fix them.

Gimme a break. As an appraiser I cannot force anyone to fix anything, but I certainly can condition my appraisal on a hypothetical condition that the repairs will be adequately done and a roof with curled shingles cannot be fixed except by the replacement of the roof as curled shingles indicate that the roof has reached the absolute end of its useful life.

If the lender/homeowner does not like me conditioning the appraisal report on a roof replacement under those circumstances and does not want to correctly fix the roof by replacing it, then they can go out and get another appraisal....I don't really care as long as I get paid.

 

[residentialguy]

Your question highlights why it is very important for appraisers to be very careful and specific in how they draft their hypothetical conditions.

I agree. But on a different level. Personally, when an issue comes up, the appraisal should come to a halt until plans are provided as to how the HO is going to fix the issue. Now the repairs will reflect the property on the report.

 

[residentialguy]

Gimme a break. As an appraiser I cannot force anyone to fix anything, but I certainly can condition my appraisal on a hypothetical condition that the repairs will be adequately done and a roof with curled shingles cannot be fixed except by the replacement of the roof as curled shingles indicate that the roof has reached the absolute end of its useful life.

I disagree. Many times it's just sections of a roof that is damaged to that extent. Many other examples this type of scenario would fall under. One of the exterior doors is missing a stairs and has a 3 ft drop. How about a missing deck with a sliding glass door to death drop? Would you condition for a new stairs or a new deck? Maybe they just seal the door instead. Problem solved, but now YOU have a problem with your appraisal. We can't tell them how to build their house. We need to find out how they are going to build/repair their house.

 

[gregb]

In what situations should a property be appraised “as-is” versus “as-repaired”?
Fannie Mae permits an appraisal to be based on the “as-is” condition of the property as long as any minor conditions, such as deferred maintenance, do not affect the safety, soundness, or structural integrity of the property, and the appraiser’s opinion of value reflects the existence of these conditions. Minor conditions and deferred maintenance items include worn floor finishes or carpet, minor plumbing leaks, holes in window screens, or cracked window glass. Minor conditions and deferred maintenance typically are due to normal wear and tear from the aging process and the occupancy of the property. Such conditions generally do not rise to the level of a “required repair.” Nevertheless, they must be reported.
The appraiser must identify physical deficiencies that could affect the safety, soundness, or structural integrity of the property as part of his or her description of the physical condition of the property. These may include cracks or settlement in the foundation, water seepage, active roof leaks, curled or cupped roof shingles, inadequate electrical service or plumbing fixtures, etc. If the appraiser has identified any of these deficiencies, the property must be appraised subject to completion of the specific repairs or alterations. In these instances, the property condition and quality ratings must reflect the condition and quality of the property based on the hypothetical condition that the repairs or alterations have been completed.

 

[timd354]

In what situations should a property be appraised “as-is” versus “as-repaired”?
Fannie Mae permits an appraisal to be based on the “as-is” condition of the property as long as any minor conditions, such as deferred maintenance, do not affect the safety, soundness, or structural integrity of the property, and the appraiser’s opinion of value reflects the existence of these conditions. Minor conditions and deferred maintenance items include worn floor finishes or carpet, minor plumbing leaks, holes in window screens, or cracked window glass. Minor conditions and deferred maintenance typically are due to normal wear and tear from the aging process and the occupancy of the property. Such conditions generally do not rise to the level of a “required repair.” Nevertheless, they must be reported.
The appraiser must identify physical deficiencies that could affect the safety, soundness, or structural integrity of the property as part of his or her description of the physical condition of the property. These may include cracks or settlement in the foundation, water seepage, active roof leaks, curled or cupped roof shingles, inadequate electrical service or plumbing fixtures, etc. If the appraiser has identified any of these deficiencies, the property must be appraised subject to completion of the specific repairs or alterations. In these instances, the property condition and quality ratings must reflect the condition and quality of the property based on the hypothetical condition that the repairs or alterations have been completed.

Very nice....someone finally actually bothered to look up the actual requirements

 

[J Grant]

I disagree. Many times it's just sections of a roof that is damaged to that extent. Many other examples this type of scenario would fall under. One of the exterior doors is missing a stairs and has a 3 ft drop. How about a missing deck with a sliding glass door to death drop? Would you condition for a new stairs or a new deck? Maybe they just seal the door instead. Problem solved, but now YOU have a problem with your appraisal. We can't tell them how to build their house. We need to find out how they are going to build/repair their house.

An appraiser can specify repairs or replacements be done in a workmanlike professional manner, and/or done by a licensed contractor. We work for the lender, not the homeowner. Lender wants to lend on houses without safety or security issues and expects them to be repaired in a professional manner, not a flimsy patch job. Nobody can "force" an owner to do anything. Owner can decide not to repair and thus not get the loan. Their choice.