Fair Condition vs Poor

[Charley Strickland]

to mr. boyd

"break-away" bars.

saw it somwhere before.

 

[PropertyEconomics]

I have one with some similar issues to Alison's. The appraisal is for the trustee's of an estate who are looking for list price for selling the property. Both of the trustees are real estate professionals in bordering states. They simply needed someone with local knowledge and data to do a FSBO, so they said. The house was under construction at the time of death. The interior is finished, and very nice; however, the exterior was never completed. It has been vacant for more than a year. I'm looking for suggestions of things to cover in a revised SOW discussion.

I'm leaning toward requiring them to provide me with at least one estimate from a local contractor. Although I have the ability to estimate the job, I don't think I want the liability. Any thoughts or suggestions appreciated.

This is a palace. What the heck is your problem? They even keep the yard clean. YOU GUYS ARE TOO HARD ON YOUR CLIENTS ....

You shouldnt pass judgement on how others live. Help them out just this once. .... I mean really.

 

[Webbed Feet]

Mr. C. Potato,

Before you decide on a SOW, ask them if they have a dispute with family members going on as to what the asking "Price" should be. Or any inheritor acting as a spoiler against the others, or wanting to buy the property from the others... say for a stupid price. Then be careful where and who your information is coming from if you hear any hesitation in the answers about this or get quizzed on why you are asking.

I believe that most appraisers fail to recognize that your situation you have there is one of the most hazardous to a license I've seen. If we had statistics of known sitations versus board complaints and E&O claims, I would not be surprised to learn this one is in the top five. Slamming into an inheritor (And this can be an executor of the estate) with an agenda that is adverse to other inheritors can place a real estate appraiser right in the middle of WWIII.

Webbed.

 

[CURT VAN HOOSER]

air compressor has been removed from exterior of structure).[/I]

Alison, there is no air compressor in and air conditioning unit. Did you mean condensor unit?

 

[Deuce of Spades]

If everything is subject to repairs and inspections, then the house would be lifted to average condition and the ability to do a rent schedule, Right?

 

[CANative]

Alison... I'm late to the party but IMO the improvements would rate a "Fair Condition" based on the indicators you have described.

If you have a printed version of M&S go to the depreciation section and read the rating indicators. The items you have described are more like Fair than Poor. Poor condition would indicate that HBU is likely to be redevelopment of the lot. This house just needs a lot of TLC.

 

[Michigan CG]

Someone earlier advised you not to talk about the roof being at the end of its life, but not leaking.

It is MHO that you should disclose EVERYTHING in your report but please you the word APPEARS liberally.

"It APPEARS that the roof is nearing the end of its economic life, although it APPEARS there is no leaking at this time.


Additionally, I do not know how this could be rated in Fair condition unless this home is only slightly below the quality of the comparables. Since you have identified the client, tell this person that you will need to obtain a professional contractor's bid and there will be an additional charge for the Cost to Cure, the contractor may (most likely) will charge for this. Then quote him/her in the report numerous times with his phone number in the report as well as the written bid in your addenda. It APPEARS to me that you will not be able to compare this to other properties without knowing the difference in quality and finish when comparing to the other properties without a known Cost to Cure. How do you make an adjustment in your grid without knowing this?

Good luck.

 

[CANative]

Additionally, I do not know how this could be rated in Fair condition

From the original post...

The house itself appears to be okay structurally but is crap cosmetically.

Frankly I don't know how any can answer the question except Alisa who has seen the property upclose and inside. This is a judgment call.

Poor condition should be reserved for a structure where the effective age is off the scale and repairs/updating would cost more and return less than starting over from scratch.

 

[Webbed Feet]

Someone earlier advised you not to talk about the roof being at the end of its life, but not leaking.

It is MHO that you should disclose EVERYTHING in your report but please you the word APPEARS liberally.

"It APPEARS that the roof is nearing the end of its economic life, although it APPEARS there is no leaking at this time.

<snip>......................

I myself, on the other hand, see little relevance to the roof's relationship to market value (economic life) and instead would comment on the roof's apparent remaining physical life. So my statement would be more like "The roof's remaining physical life looks to be less than satisfactory for general lending guidelines. Curling, cuping, discoloration, and other signs of approaching failure of the composition shingles were noted. However, I observed no indication of active leaks during viewing on the effective date of this analysis. An inspection by a qualfied professional is required. See conditions of appraisal. Market reaction is considered in the condition adjustments for the visually judged condition. If inspection indicates roofing must be replaced the client may ask for the condition adjustments to be revisited with a "subject to" condition requiring roofing replacement."

A house must have a serviceable roof. Commit to the problem and provide a course of action. Or don't. I am just the opposite. Avoid words like "Appears" as much as you can. If you don't have the ability to rate the condition of a property.... it will "Appear" that you are so afraid to commit to what you think that it may appear you don't know what you are doing.

Webbed.

 

[CANative]

Market reaction is considered in the condition adjustments for the apparent condition

Even you couldn't resist using "appears" or some variant of "appears."

Market reaction = Appraiser's guess.