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Final for "as-is" appraisal requested

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OSU Beavers

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Jan 10, 2007
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Oregon
I did a report on a POS SFR "under remodel" last week were the SOW required an "as-is" value.

I rated the condition as "Below Average", found two similar houses that sold "as-is" for cash and I listed the faults along with the costs to cure (no siding on rear of house, unfinished drywall, a bathroom with plumbing not hooked up, etc). Now the LO is saying that they did some work, wants me to mark the house as being in "Average" condition and sent over an order for a 1004D.

Anything else to tell him in response besides "new assignment"?

PS the HO told me that Skippy appraised it for 10% more "as-is" a month ago. Of course Skippy is on the do not use list for this lender:laugh:
 

CANative

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Jun 18, 2003
Professional Status
Retired Appraiser
State
California
New inspections of subject and different "comps" plus about 2-3 hours of extra work back at the office. Forget the 1004D.

I would probably charge at least 1/2 of the original fee. But I could get them the report faster than anyone else (if it's not too far away).

I can't imagine what they could have done of significance in two weeks. Well, I can imagine and it wouldn't by pretty.
 
Joined
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Colorado
I can't imagine what they could have done of significance in two weeks. Well, I can imagine and it wouldn't by pretty.

It doesn't have to be pretty -- it just has to be finished.

If the work is done and no other changes are needed, I would create a new report with a new file number & effective date, change the condition to average, delete the CtC, and charge them $100.
 

CANative

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Jun 18, 2003
Professional Status
Retired Appraiser
State
California
It doesn't have to be pretty -- it just has to be finished.

Two weeks...

Drywall up but not completely taped, textured and painted.
Exterior siding is now complete with a couple of sheets of unpainted T-1-11 nailed on.
Bathroom has open drywall where they soldered some copper and ran some flex lines to the toilet. Shower has copper tubes coming out with a shower head and handles stuck on.

I've seen it a gazillion times.
 

Webbed Feet

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Feb 11, 2005
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Certified Residential Appraiser
State
Canada
To All,

Short of something along the line of a FHA 203K loan or such a type for properties needing resurrection from the dead, I have never heard of any loan type that allows such structural items as missing siding !!!!!!! Crap! .. Why don't we agree to "as is" a house with no roof or no electrical wiring while we are at it for mortgage purposes?

Next, shall we all get the stones to call a pig a pig for a change? "Less than average" as defined ..... is FAIR! When are we all going to stop trembling in our boots and stop playing politics with the words?

Oh, and those on here that are already saying they would go ahead and call it "Average" and they have not even seen the house originally or for a reinspection ?????? Holy crap, shame on you! Sorry, Mr. Knutson. But don't you think you should only advise calling it "Average" if it really is?

LO wants a SOW with only an exterior inspection... DUH!!!!!!!

Sorry, this entire thread made me crabby.

Webbed.
 

CANative

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Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Fair, Average. Good, Poor. It's all kind of subjective unless you want to make it objective with something like the very good descriptions of each category in Marshall & Swift. And to get a "fair" rating from M&S the structure has to be in pretty bad shape.
 

Webbed Feet

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Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
Mr. Boyd,

You know what I mean. This is exactly where and when Skippy stuck his camels head in the tent to start with. Now look where we are.

The pressure not to use the word "Fair," and our entire trade responding to that pressure, ended up with supervisory appraisers not driving comps, not inspecting subjects though they signed that they did, and every other imaginable act of fraud we've seen. It was insidious, and we allowed it. Now all of us have the virus and there doesn't seem to be a cure.

So think of that next time ya all type "Average Minus" or "Less than average" to avoid saying "Fair."

Webbed.
 
Joined
Jun 3, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
A brief comment on condition in appraisal reports --

Underwriting guidelines require that subject property condition be average or above, or the loan will automatically be turned down. (203k and rehab construction loans excepted)

Any report on a property that has below average, fair, or poor as a condition designation cannot be used to get a loan.

If an appraiser firmly believes in their own (highly subjective) opinion that the subject property cannot be brought up to "average" condition, they should inform the LO of that fact, so as to not waste the LO's time beating a dead horse.

In a perfect world with objective standards, some residential properties will never get above fair, poor, or below average -- but appraisals written for a lending decision are in that SOW subjective realm of underwriting guidelines; and unless we as appraisers choose to red line homes we don't personally like, the baseline condition for habitable subject properties should be average.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Use the "F" word will kill virtually every mortgage lending deal. And it shouldn't. But it does.

Reading the two definitions in M&S, the property under discussion sounds like less than average and more than fair. Do we kill deals (and lose work and clients) when there is no clear dividing line between what is "fair" and what is "average?"

G,A,F,P should go away. There should be a 5 (or 10) point rating system with clear descriptions of each.

Mehh! That won't work. Lenders will have a "No loan on less than 4's" policy and the appraiser will get pressured to change a 3 to a 4.
 
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