Dampness in Crawl Space

[bbr711]

Presently completing an assignment for a USDA sale, small ranch dwelling built in 1959.

Per my head and shoulders crawl space inspection, I noted dampness on the foundation wall (moisture seeping upward through the concrete block) with minimal pooling of water atop the vapor barrier. The inspection took place the day after a heavy rain.

The property is not in a flood plain. However, the subject lot appears to have grading/drainage issues.

To protect the lender, the buyer, and myself, I want to condition the appraisal subject to inspection on these supposed issues. Am I being too nit-picky here?? If not, I'd like to be specific as to who should inspect these issues. What type of qualified professional should I call for a grading/drainage inspection? What type to assess the dampness in the crawl space? Or should I just use the term "qualified professional" and have the lender make that decision. I've had lenders contact me in the past to define the "qualified professional," and hope to skip that step with this assignment...

Thanks!

 

[RSW]

Your USDA appraisal should be completed per HUD/FHA protocol. How would you address it if you were doing a FHA appraisal? Call for an inspection by a qualified professional to determine if there are any problems and make an EA with the report CB4'd.

 

[Webbed Feet]

Pooling of water, any amount, in a crawl space on top of a vapor barrier is not an issue calling for an EA asking for an "Inspection" under an assumption "nothing is wrong" situation. If you could see standing water from a head and shoulder only viewing from the crawl access, what else is there you could not see? Obviously, something is wrong.

This is a CB3 "Repair it!" case using an HC the repairs have been completed in a workmanlike manner. So no need to specifiy what "type" of expert is needed for an "inspection." I probably would use CB3 and CB4, with CB4 caling for a clear pest and rot inspection after the repairs are completed to achieve an industry standard "dry" crawlspace.

 

[bbr711]

I'm not sure what verbiage to use in this situation... Any advice would be greatly appreciated!

I assume the moisture problem in the crawl space is related to grading issues and poor site drainage , but I don't know. So, something like:

"Subject to the following: inspection by qualified professional to assess site grading and drainage issues as noted by dampness and pooling of water in crawl space; repairs deemed necessary to improve site drainage and carry surface water away from subject foundation; clear pest and rot inspection."

This is a CB3 "Repair it!" case using an HC the repairs have been completed in a workmanlike manner. So no need to specifiy what "type" of expert is needed for an "inspection." I probably would use CB3 and CB4, with CB4 caling for a clear pest and rot inspection after the repairs are completed to achieve an industry standard "dry" crawlspace.

 

[Webbed Feet]

I'm not sure what verbiage to use in this situation... Any advice would be greatly appreciated!

I assume the moisture problem in the crawl space is related to grading issues and poor site drainage , but I don't know. So, something like:

"Subject to the following: inspection by qualified professional to assess site grading and drainage issues as noted by dampness and pooling of water in crawl space; repairs deemed necessary to improve site drainage and carry surface water away from subject foundation; clear pest and rot inspection."

Plan ahead and take the monkey off your back whenever you can. One issue you may have had in the past is saying "qualified professional," why word it like that? It is almost redundant and opens you up to being asked to define what that means. More, you are placing yourself in the position of a psydo-qualfied pro by adding in a suggested determination of the cause.. why? How do you know it is surface water? Why are you making such suggestions? Allow the repair people and inspectors you are calling for to do their jobs, you do yours.

Water is the enemy of houses. Crawl spaces are supposed to be dry, not wet. Wet crawl spaces invite wood destroying organisms and pests. These are accepted facts by about anyone in the real estate industry. So you should be saying I found a problem, fix it! And oh, by the way, I know this problem is a primary source of other possible hidden damage, so look for it!

CB3 with HC repairs are completed: "Problem causing standing water in crawlspace to be determined and corrected. Results to be industry and market acceptable dry crawlspace or moisture level as determined by industry standards. Note to underwriting, see the selected contractor regarding acceptable industry standards as set by the appropriate jurisdictional authority for the subject location. "

CB4 with EA regarding pest / rot inspection: "Pest and rot inspection of home, with special attention to crawl area, due to standing water. Clear inspection needed by contractor not involved with needed repairs."

Again, you do not determine or suggest the cause of the problem, you just identify the problem. You do not say or suggest what the standard of repair has to be, you just say it has to meet standards that should be identified and followed by the repair contractor. Then, because you DO know standing water is NOT a good thing with other possible serious implications, you are saying that just making the water puddles go away doesn't cut the mustard. Get a second inspector, other than the repair contractor, in there and make sure that all that needs to be done is make the standing water go away... Otherwise the lender could end up with a trench to drain the water, and $30,000 worth of termite or rot repairs that was all ignored.



P.S. If contractors and building inspectors are licensed in that state, you could specify "state licensed" versus "qualifed professional." Now the underwriter knows what you mean. A licensed contractor, not the owners retarded brother-in-law the owner says is "qualified."

 

[bbr711]

Very sound and thoughtful advice. I appreciate your time and guidance.

 

[RSW]

Webbed,

I’m not sure I follow your reasoning. In one instance you say to CB3 and call for a repair but then in the other instance you say to CB4 and call for an inspection. What is the difference in both of the instances you mention? Just because moisture was noted in the crawlspace does not mean there is an actual problem. Especially, if there has been an unusual amount of rain which we have had this winter and spring. There is nothing wrong with CB4 the appraisal and call for an inspection to see if there is a problem. USPAP requires the appraiser to note a possible effect with the use of the EA in the appraisal report.

The OP stated this was for the USDA which says to follow HUD/FHA protocol. One of the requirements in the HUD/FHA protocol is if the appraiser calls for a repair, then a cost to cure is required. Now, how is the appraiser going to do that without an inspection by a qualified professional or whoever does the inspection?

 

[Mr Rex]

Scott, there is a flaw in your logic. CB4, is for an inspection with an EA that no repair is needed so there is no cost to cure. The known needed repairs are covered with CB3, with a CTC. The unknown is covered by CB4 and makes an assumption that it does not need repairs.

 

[RSW]

Scott, there is a flaw in your logic. CB4, is for an inspection with an EA that no repair is needed so there is no cost to cure. The known needed repairs are covered with CB3, with a CTC. The unknown is covered by CB4 and makes an assumption that it does not need repairs.

Exactly, Rex! The appraiser would not know what the cause of the moisture is and does not actually know if there is a problem or not. How can a CTC be given when the appraiser does not even know if there is a problem or not?

 

[Mr Rex]

Water in a crawlspace is a problem.