Does This C5 Rating Sound Right?

[Deleted member 134708]

@GMG

In truth, nothing you can do about it now. Not a very good appraiser showed up to the home.

Here's what I would do just to bust balls:

Ask your lender you need something clarified

"The appraisal report states the home is a hypothetical C5." What rating is it in 'not hypothetical'?"

"The appraiser then says the home will be in C3 condition once the repairs have been made. Isn't the report made hypothetical to these being done. In other words, aren't these repairs done in the hypothetical world?"

The appraiser is going to have to change the report to a C3. This does absolutely nothing for you, but will tie the appraiser up for 1/2 a day.

 

[GMG]

So why didn't someone spend 10 minutes before the appraiser got there and replace them?

I don't want to get into a back and forth, because you are right, someone could have done that. The reason it was not done was because the seller, having been in real estate for 20 years, claims to have never had an appraisal where that has been brought up as an issue when he was obviously in the middle of painting one or many rooms. Lesson learned for both him and me.

Now, can you be kind enough to answer the question I last posed to you directly? "Either way, would that push the condition down to a C5?" I agree it's an item of note, and do not oppose it being detailed on the appraisal, but I don't see it as that big of a deal as I always remove the plates when I paint as well.

 

[residentialguy]

C-4 Subject to the repairs.

Only if the repairs bring it up to C4. If it is subject to repair, then you report the as repaired condition, not the as-is condition.

 

[Michigan CG]

You state that the appraisal was supposed to be AS-IS yet the appraiser "required" items to be fixed and made the appraisal report "subject to"? Is this an FHA or USDA?

You need to make clear to your lender (loan officer) that you are buying the house as-is and need a loan for an as-is house. The appriaser seems to be acting like this is a USDA or FHA financed deal, the lender requires this or they are playing God.

 

[residentialguy]

The appraiser is going to have to change the report to a C3. This does absolutely nothing for you, but will tie the appraiser up for 1/2 a day.

Nottrav is correct! If he "required repairs", then it is subject to repair, not as-is. Why don't appraisers get this?

 

[Deleted member 134708]

Only if the repairs bring it up to C4. If it is subject to repair, then you report the as repaired condition, not the as-is condition.

Yes. Why is everyone overlooking this. The appraiser has no clue what they are doing. They reported as-is condition yet marked subject to.

 

[Michigan CG]

I don't think C5 is unreasonable, per the UAD definition.

If the report is subject to then the report would not note it as being C5 as the repairs "required" would improve the property in the hypothetical condition of the subject to repairs.

 

[Michigan CG]

The appraiser has no clue what they are doing. They reported as-is condition yet marked subject to.

Exactly. Twice.

Was the appraiser hired by an Appraisal Management Company?

 

[residentialguy]

I agree with these being safety issues.

By the way, if there are any safety issues (even on a brand new house), the property is an automatic C6 and must be made subject to repairs. Of course the report wouldn't reflect C6 condition...it would reflect the condition after the repairs have been made.

 

[GMG]

I'm wondering if I maybe missed sharing information accurately enough and if so my apologies.

In the URAR:

Improvements: "C3; Kitchen-remodeled-six to ten years ago; Bathrooms-remodeled-six to ten year ago; The subject is in overall good condition and appears to be maintained. Quality of construction is overall average with standard finishes which is typical for a home of this age in this market area. Effective age is based on the observed and hypothetical condition on the inspection date of this appraisal. This report is based on the hypothetical condition that the subjects unfinished construction items are completed in a workmanship like manor. See addenda."

Sales Comparison Approach section he listed the subject property with QOC of Q4, Actual Age of 38, and Condition C3.

In the reconciliation section he checked the box for subject to.

The information I shared at the beginning of the thread was from the Supplemental Addendum (I won't share it again).

Does that change anything?