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Oregon Doug

Senior Member
Jan 15, 2002
Professional Status
General Public
I need a little help in understanding this concept (yes, I've read the manual).

I do quite a few FHA REO appraisals and they always want an "as is" value for marketing the property. But, some of these homes include significant health & safety issues. As an example, one that I inspected today had part of its roof blown off several months ago. The rain (this is Oregon) soaked the interior over the past several months and now most of the bedroom ceilings are lying in a soggy heap on the floor.

SO, when I estimate its "as is" value, do I have to include/recognize the costs required repair the roof, fix the ceilings and base the "as is" value as though free and clear of all health and safety discrepencies? I'm getting a little confused on the definition of "as is" - does it really mean "as is" or "as is less the impact all health & safety descripencies"

I'm starting to feel like ole' Bill when I ask what your definition of "is" "is".

Thanx, Oregon Doug

Jo Ann Meyer Stratton

Elite Member
Jan 16, 2002
Professional Status
Certified Residential Appraiser
"As Is" and a comment that it is not insurable if the costs of repairs would be over $5,000. Get a copy of Mortgee Letter 00-27 regarding HUD REOs. That mortgagee letter has some very specific wording to use depending on the circumstances. Utilities have to be commented on--whether they were on or off.

Head Surfer

Staff member
Jan 4, 2002
Professional Status
Retired Appraiser
To see this HUD Mortagee Letter (or any of them) go to this page:


Then locate the year of your mortagee letter. Since this one was 00-27 it was published in 2000. (the first two digits are the year published) Click on 2000 and scroll down the list and you will see #27. Click on it to read.

Hope this helps!

We have a list of this and other helpful HUD websites in a sticky message at the top of this forum.
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