Curling Comp Shingle Roof Question For Conventional Loan

[residentialguy]

Reading is fundamental:
subject to the following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair:

Yeah for check box 4, but what about check box 3? Understanding what you're reading is fundamental

 

[Mr Rex]

Yeah for check box 4, but what about check box 3? Understanding what you're reading is fundamental

you mean the one that says the repairs or alterations are complete? What don't you understand about that?

 

[residentialguy]

you mean the one that says the repairs or alterations are complete? What don't you understand about that?

Not me but it appears that you don't understand that there are many ways to correct a problem and those can affect the property value.,,like my example I stated with the new shake roof (new vs repaired old roof results). One needs to know how the HO is going to correct the problem since you are basing your value on that condition.

 

[Mr Rex]

I would make the ordinary assumption that the repairs would be with the same type materials that exist. So if a composition shingle roof, I would appraise based on the same material. If called for repairs of existing, then I would assume repair of the existing. If called for replacement, then I would assume replacement with new similar materials. Hardly rocket surgery. If the borrower decides to go above and beyond and put a standing seam metal roof, then that's what we in the biz call "a new assignment."

 

[residentialguy]

that's the problem....our job is not to tell the HO they need a new roof. Maybe it does, maybe it doesn't. We aren't roof specialist. I can see that there are some bad shingles. You can't assume that they would just repair the bad shingles, nor can you assume they will replace the roof. What about that sliding door that a deck is supposed to be attached to, but is missing. It's a safety hazard and they only thing you can do is to tell them to fix the hazard. But how are they going to do it? Put up a deck or porch?, Put up a stairway? Put railings on the outside of the door? Screw in door stops so the door can only open 4"? They all cure the problem, but they may change the value depending on which option they choose. You can't tell them how to cure the problem, but your appraisal has to reflect the house as they have cured the hazard issue.

 

[Deleted member 130081]

Selling Guide = Rules For Underwriting
USPAP = Rules For Appraisers

Selling Guide is applicable to appraisers like, USPAP is applicable to underwriters.

However it is convenient for underwriters and appraisers to have provided to us the answers to the test, because it just makes everything so much easier, even if that means the independence of the appraiser has been undermined.

But, who cares about that sort of stuff right? Because what's really important, is that the data lines up in an appraisal in the sort of fashion that can provide a sense of confidence to investors who think home loans are a good bet, right?

And in some cases, PMI insurance will be sold too.

And, the more loans sold, and the faster they are sold, the better for everyone and everybody forever and ever.

...move along, nothing to see here...these are not the droids you're looking for...

 

[Mr Rex]

that's the problem....our job is not to tell the HO they need a new roof. Maybe it does, maybe it doesn't. We aren't roof specialist. I can see that there are some bad shingles. You can't assume that they would just repair the bad shingles, nor can you assume they will replace the roof. What about that sliding door that a deck is supposed to be attached to, but is missing. It's a safety hazard and they only thing you can do is to tell them to fix the hazard. But how are they going to do it? Put up a deck or porch?, Put up a stairway? Put railings on the outside of the door? Screw in door stops so the door can only open 4"? They all cure the problem, but they may change the value depending on which option they choose. You can't tell them how to cure the problem, but your appraisal has to reflect the house as they have cured the hazard issue.

The appraisal is based on the extraordinary assumption that the deficiency has been remedied. The ordinary assumption is that the remedy is minimal and in workmanlike fashion. If they decide to build a 16X40 deck using organic Brazilian Ipe then the SOW has been changed and if they want that remedy considered in the value its a new assignment. This ain't a game of what if????

 

[J Grant]

that's the problem....our job is not to tell the HO they need a new roof. Maybe it does, maybe it doesn't. We aren't roof specialist. I can see that there are some bad shingles. You can't assume that they would just repair the bad shingles, nor can you assume they will replace the roof. What about that sliding door that a deck is supposed to be attached to, but is missing. It's a safety hazard and they only thing you can do is to tell them to fix the hazard. But how are they going to do it? Put up a deck or porch?, Put up a stairway? Put railings on the outside of the door? Screw in door stops so the door can only open 4"? They all cure the problem, but they may change the value depending on which option they choose. You can't tell them how to cure the problem, but your appraisal has to reflect the house as they have cured the hazard issue.

. If report is made subject to repair, the appraiser is supposed to specify the general standard of repair/replacement, in order to give an "as repaired value". Typically consistent with main dwelling standard of workmanship/materials. Appraiser has to use observation basic skills to decide whether to call for replacement rather than repair. Unless present materials obsolete or unsafe, usually call to replace or repair with same/similar, such as comp tile roof repair or replace if existing is a composition tile roof.

If owner puts up a metal roof or S tile roof if you only called for comp tile, that is on them. If the owner or lender then asks for a new appraisal due to upgraded roof improving value, fine..

But if appraiser calls for a composition tile roof and owner puts up a tar paper roof, it is inferior and not what appraiser based value on, so it would not pass the 1004 D completion inspection.

 

[residentialguy]

If report is made subject to repair, the appraiser is supposed to specify the general standard of repair/replacement, in order to give an "as repaired value". Typically that repair be made consistent with main dwelling standard of workmanship/materials. Appraiser has to use some observation basic skills to decide whetehr to call for replacement rather than repair.

But you don't have the competency to decide whether or not the whole roof needs to be replaced. It's not about being made consistent with main dwelling standard of workmanship/materials...that is assumed.

 

[Mr Rex]

OK. So you require plans and specs anytime there are required repairs. Got it.