Ted Martin
Senior Member
- Joined
- Jan 17, 2002
- Professional Status
- Certified General Appraiser
- State
- Kansas
Does FHA want the remaining economic life for the unit or the complex? Not all, but most of the condos I do the unit ownership is for the air space, drywall in and a fractional interest in the common elements which would include the box that the unit is located in.
Since finishes typically have a total estimated life of less than 15 years then the total estimate life for the unit could never exceed 15 years, which causes underwriters to have kittens on 30 year mortgages. If it's on the box and I have only inspected the unit and done a very limited exterior of the box, then the only source for the ERL is thin air.
By the way I've ask both the Denver HOC and Landsafe staff appraiser's this question and neither has an answer, and all have agreed that it isn't reasonable to ask the appraiser to provide this information. The only ones that respond differently have no answers but simply want to make the underwriter happy and not make a wave.
Since finishes typically have a total estimated life of less than 15 years then the total estimate life for the unit could never exceed 15 years, which causes underwriters to have kittens on 30 year mortgages. If it's on the box and I have only inspected the unit and done a very limited exterior of the box, then the only source for the ERL is thin air.
By the way I've ask both the Denver HOC and Landsafe staff appraiser's this question and neither has an answer, and all have agreed that it isn't reasonable to ask the appraiser to provide this information. The only ones that respond differently have no answers but simply want to make the underwriter happy and not make a wave.