Fair Condition vs Poor

[Kristina Ledesma]

This is an easy one:

Fair - loan might go through
Poor - Snowballs chance in he**

Agreed! "Fair" and "poor" are loan killers, but it is what it is!!

Poor= no one in their right mind would want to live in it....
Fair= with a little work, would be acceptable to live in....
Average= the average joe-schmo house....
Good= would be a really nice house to live in....
Excellent= would give right arm and first born child to live in!

 

[Kevin A. Spellman]

My thoughts, a little long be worded for a reader to understand.

As of the effective date of valuation the subject’s home cannot be considered habitable. This property has experienced deferred maintenance. The subject home was built in 19XX, a home from this era of construction has typically experience at least one roof shingle replacement. The subject’s roof shingles need replacement. Although the interior ceilings have not experience penetration from rain, I do believe a buyer would react and budget for immediate roof-shingle replacement.

The subject’s home is design for central air, but the condensing unit is not in its place. The kitchen is not functional as there are no appliances. The interior décor needs replacement. The flooring appears to have been installed by an ameature and is not useful. The finish flooring throughout this home needs replacement. Other repairs will be glass replacement in some windows and possibly tub replacement in the bathroom. I will provide a list of repairs that I believe that is necessary to bring the subject’s home up to the current minimum market standards. These repairs will be found in both approaches under curable functional inadequacy.

The subject’s property in it “As Is” condition will not attract a typical buyer. The subject’s property would attract an investor/contractor or an entry-level buyer with a contract to renovate. I cannot provide reasonable indicators of value for an “As Is” condition. I can only provide indicators of value from the subject’s competing market where the homes are marketable and habitable. These properties are reasonable representatives of the subject and have been exposed to the market conditions, as they exist as of the effective date of valuation. The cost and the sales approaches in this report will have significant adjustments to reflect both cost to repairs and typical market premiums and penalties within the sales comparison analysis. In market approach the subject is identified as “Needs Repairs” and the adjustment for this is in the functional utility grid and not the condition grid. This is proper appraisal practice.

 

[Webbed Feet]

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

Market reaction = Appraiser's guess.

No. Market reaction = comp with somewhat equally culled and cupped roofing.

Webbed.

 

[CANative]

No disrespect Barry, but one roof with cupped shingles does produce much information toward making an adjustment for "market reaction." If a house has deferred roof maintenance it probably has other deferred maintenance. On top of that the market will react differently at different times and in relation to the current crop of competing properties.

 

[PropertyEconomics]

Now that did not last long did it, being nice that is? Time-out. I for one enjoy and appreciate Joyce contribution to this forum.

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??

 

[Joyce Potts]

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.

You're absolutely right. By using such word as 'appears' you've alluded to an opinion vs. fact which serves to limit the appraisers' liability, IMO. And you can never have too much limited liability.

 

[Webbed Feet]

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??

P.E.

Add a smiley face so they know your joking or maybe a <jk> ... sometimes things look serious when meant to be funny....

Webbed.

 

[Webbed Feet]

"Appears"

"Appears" = Opinion?

I don't agree. Using "appears" too much, when referring to things in a report, very often just makes the appraiser sound uncertain of themselves.

Webbed.

 

[Webbed Feet]

No disrespect Barry, but one roof with cupped shingles does produce much information toward making an adjustment for "market reaction." If a house has deferred roof maintenance it probably has other deferred maintenance. On top of that the market will react differently at different times and in relation to the current crop of competing properties.

Mr. Boyd,

Exactly!

Webbed.

 

[PropertyEconomics]

I'm glad you cleared that up for everyone, because many were wondering!

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 ....