Fair Condition vs Poor

[CANative]

Mr. Boyd,

Exactly!

Webbed.

My post should have read "does not produce much information."

But re-read your suggested "new and improved" statement. You have used the word "appears" and the variant "apparent."

If the appraiser is making the appraisal subject to inspection instead of subject to repairs then the appraiser is using an extraordinary assumption instead of a hypothetical condition. An EA is based on an "unknown." Therefore "appears" is probably a good choice of words.

Having said that, I too try to avoid using the word "appears" because it seems to be overused.

 

[Joyce Potts]

Ms Potts ... I would NEVER insult you on purpose personally. While we may have disagreements on appraisal theory Im not here to bash someone personally that I dont know. We can "appraiser" bash but not from a personal standpoint.
Your comment about the bar led to mine about drying up .... my sincerest apologies if you took that as being offensive. Again I would never do that ....

I'd respond, but I've APPARENTLY been over served while sitting at my in house break-out bar.

 

[Webbed Feet]

Mr. Boyd,

There I amended my statement for you. It appears, being tired, I was overly influence by Mr. Evans hypnotic suggestion to liberally apply the word "appears" as much as possible. I had no idea he had such uncanny powers of suggestion! Maybe he can help all of us break some bad habits. Like posting on the forum too much!

Webbed.

 

[Couch Potato]

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.

In this case the client was not willing to pay a price sufficient to cover the cost of a credible report. If they come back to me in a week or two I'll gladly do a report for them, at a reasonable fee. Several "red flags" appeared in my discussions with the client. When someone who claims to be a real estate professional seems to want to ignore the effect of an unfinished exterior on market value, something is wrong. I can't see anyone but an investor/contractor buying it in its current state.

As you astutely note, any report for an estate needs to be a report one would feel comfortable defending in court.

 

[Vegan702]

In any case, I don't think it is a good idea to get into the security bars thing as you are making a recommendation that you can be liable for; I think the best way to handle it is like you did the rest of the items, recommend that a competent tradesman, local code official etc inspect and determine what needs to be done; said person to be determined at the client’s sole discretion.

Just to touch on this again, how does everyone handle security bars? I was always taught to disclose that the security bars were either quick release or not, and if not then make the appraisal subject to correction since it was a safety related item. I think this is the first time I ever read not to do anything about the bars.

 

[Michigan CG]

Mr. Boyd,

There I amended my statement for you. It appears, being tired, I was overly influence by Mr. Evans hypnotic suggestion to liberally apply the word "appears" as much as possible. I had no idea he had such uncanny powers of suggestion! Maybe he can help all of us break some bad habits. Like posting on the forum too much!

Webbed.

My feathered friend, I assume that is a compliment. I use the word APPEARS because I am noting things that I observe, but alluding that I am not an expert on building or condition. I am a voice of value opinion, in what in my opinion would effect value. And to summarize/define Ms. Potts statement I am covering my butt in regards to reporting and disclosing everything I see, and when in doubt using the word APPEARS to make the reader aware of the situation while not opining too much as to portray myself as an expert on things i am not an expert in.

There are too many people who will not report what they see because they are worried about liability. I report everything I see, but i do it so as not to overstep my bounds of knowledge.

 

[LA Woman]

Here in Los Angeles, security bars are everywhere in some neighborhoods. We were taught by the bank to check for an interior quick release. If none were present, we report it as safety hazard, but that's it.

It is not my job to order bars removed, just to report the hazard. We also take interior and exterior photos of all bars on all rooms.

Normally, the lender will have the homeowner remove the bars, we go back out to inspect they have been removed, do a 442, take more photos and thats it. However, I've noticed recently that I very rarely get a call back on these.....that leads me to think that they are circumventing this hazard somehow.

 

[Mike Garrett RAA]

I concur, report what you see. Requiring repairs is not my job.

Interesting note. I just did an appraisal on an REO. There are no appliances, the carpet is dirty, steps missing from the slider to the patio, yard is mostly weeds. The sales price is about $15,000 below comparables in the neighborhood. Contract says..."a $2,000 credit, at closing, for new appliances". So, I appraised the property and called the condition..."below average" and made a $10,000 adjustment in the grid.

Lender calls and says..."below average is not acceptable and is killing the deal, can't you say average?" I say, no, it's not average, it's below average when compared to other properties in the neighborhood.

She then says ... "well then, call for all the things that make it below average to be repaired". I said, "no, read the contract, the seller (bank) says sold only "as-is".

After about half a dozen calls, including one to the VA, they are closing Friday with the property in "below average" condition (fully acceptable to the VA, FHA, and Fannie Mae)

 

[Pamela Crowley (Florida)]

Excellent example of reality can prevail. Thanks, Mikey.

 

[Mike Kennedy]

Ron you are either not paying attention, didnt read the thread, or your sense of humor got lost. I too appreciate Joyce's contributions. Sheesh ..... must everyone think everything is a personal slam??

hey....what exactly do u mean by that.............. !!!!!!!!