D
Deleted member 80407
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I am appraising a REO property with big time problems in the basement level. Appraiser's are not home inspector's and this is the reason for my questions. My 10 years past experience in the home improvement industry along with about 15 years of appraising, usually can figure fairly accurate estimates for cost to cure. But this is a different situation.
The basement level had a few areas with falling down ceilings. I am not sure of the cause or the source of the problem. However, I am assuming some leaky bath pipes from above (1st level of house had 10 rooms with 4 bedrooms and 3.5 baths). The basement level also had mold presence in a few areas. The basement level of this house was VERY LARGE (4,941) with almost the entire level being finished (2 kitchens, 2 baths, 3 rec rooms, and a game room). An interview with a local professional realtor (familiar with house) told me that the house also had water seepage on the west foundation wall. She was not sure if the issue was corrected.
Considering I will be recommending for four inspections (home inspection, plumber, electrician, and waterproofing), how would one break down the cost to cure without the results from the recommended inspections. My first thought was to make on large allowance adjustment and to reserve the right to alter my opinion of the cost to cure depending upon the out come of the recommended inspections. This is the 2nd foreclosure on the property. This house sold as a foreclosure property about 5 years ago for $941,000. I am suspecting the house had issues back at the time of the past transaction that were more than likely, not cured.
Any of you experienced REO appraiser's out there have any other suggestions about figuring a cost to cure? Keep in mind, were are not experts for inspection mold, electrical, leaky piping (plumbing) or waterproofing. Any suggestions will greatly be appreciated.
The basement level had a few areas with falling down ceilings. I am not sure of the cause or the source of the problem. However, I am assuming some leaky bath pipes from above (1st level of house had 10 rooms with 4 bedrooms and 3.5 baths). The basement level also had mold presence in a few areas. The basement level of this house was VERY LARGE (4,941) with almost the entire level being finished (2 kitchens, 2 baths, 3 rec rooms, and a game room). An interview with a local professional realtor (familiar with house) told me that the house also had water seepage on the west foundation wall. She was not sure if the issue was corrected.
Considering I will be recommending for four inspections (home inspection, plumber, electrician, and waterproofing), how would one break down the cost to cure without the results from the recommended inspections. My first thought was to make on large allowance adjustment and to reserve the right to alter my opinion of the cost to cure depending upon the out come of the recommended inspections. This is the 2nd foreclosure on the property. This house sold as a foreclosure property about 5 years ago for $941,000. I am suspecting the house had issues back at the time of the past transaction that were more than likely, not cured.
Any of you experienced REO appraiser's out there have any other suggestions about figuring a cost to cure? Keep in mind, were are not experts for inspection mold, electrical, leaky piping (plumbing) or waterproofing. Any suggestions will greatly be appreciated.