Okay, this is how it shakes out so far:
Pam: We're using an extraordinary assumption, as you suggested. We're using the facts that the house is six years old and the foundation isn't cracked as a basis for the extraordinary assumption that the foundation is stable. (I re-read USPAP's treatise on these, and it seems you can't make'em without stating the basis for the assumption.) We're stating that only a qualified inspection can determine whether this is so, and if it ain't, we reserve the right to change the value opinion accordingly.
MLeggett: We're using functional obsolescence and a cost to cure of $5,000. This is based on a telephone consultation with a code-compliance inspector friend who states that the existing foundation can be used if you 1) Insert a continuous metal termite shield between the untreated wood and the masonry; and 2) Tie the joist band to the footing every six feet. Cost of materials could be less than $500. The rest would be devoured by labor--and a lot of it. This procedure would allow the house to be jacked up only 1/8 - 1/4 inch (just enough to insert the termite shield). There should be little if any cracking of the interior if this is done properly; a house will flex that much during normal thermal expansion, although much more slowly. (I'm not going to detail that procedure in the report, unless you folks recommend it. I'll make a note for the work file, but my LO isn't interested in these details at this point.)
RStrahan: We got a good crawl space already. The above procedure avoids disconnecting plumbing, gas, sewage, and HVAC ducting. We think that $5,000 adjustment would adequately represent resistance from knowledgeable buyers in this area. I think this is realistic, because while our general redneck population certainly aren't construction engineers, they are definitely not afraid of hard work. Many would borrow a 20-ton hydraulic jack and undertake the job themselves, once told how to cure the condition. Others would hire it done, and that's where the five grand adjustment comes from. Additional market resistance for having to undertake the repairs would probably go something like this:
Buyer: "I'll give you $10,000 less than you're asking, because the foundation needs to be fixed."
Seller: "Why, there ain't nothing wrong with that foundation. Besides, you can fix that for less than $500; I'll knock that much off."
We figure these two mule traders would settle somewhere around $5,000 difference, unless one of them insulted the other's coon dog during negotiations. Then there wouldn't be a sale at any price.
BTW, folks, the house is 1650 sqft; market value range (adjusted) supported between $85 - $96,000; adjustments include the $5 grand.
Thanks to all of you who answered. Your help is greatly appreciated.
Pam: We're using an extraordinary assumption, as you suggested. We're using the facts that the house is six years old and the foundation isn't cracked as a basis for the extraordinary assumption that the foundation is stable. (I re-read USPAP's treatise on these, and it seems you can't make'em without stating the basis for the assumption.) We're stating that only a qualified inspection can determine whether this is so, and if it ain't, we reserve the right to change the value opinion accordingly.
MLeggett: We're using functional obsolescence and a cost to cure of $5,000. This is based on a telephone consultation with a code-compliance inspector friend who states that the existing foundation can be used if you 1) Insert a continuous metal termite shield between the untreated wood and the masonry; and 2) Tie the joist band to the footing every six feet. Cost of materials could be less than $500. The rest would be devoured by labor--and a lot of it. This procedure would allow the house to be jacked up only 1/8 - 1/4 inch (just enough to insert the termite shield). There should be little if any cracking of the interior if this is done properly; a house will flex that much during normal thermal expansion, although much more slowly. (I'm not going to detail that procedure in the report, unless you folks recommend it. I'll make a note for the work file, but my LO isn't interested in these details at this point.)
RStrahan: We got a good crawl space already. The above procedure avoids disconnecting plumbing, gas, sewage, and HVAC ducting. We think that $5,000 adjustment would adequately represent resistance from knowledgeable buyers in this area. I think this is realistic, because while our general redneck population certainly aren't construction engineers, they are definitely not afraid of hard work. Many would borrow a 20-ton hydraulic jack and undertake the job themselves, once told how to cure the condition. Others would hire it done, and that's where the five grand adjustment comes from. Additional market resistance for having to undertake the repairs would probably go something like this:
Buyer: "I'll give you $10,000 less than you're asking, because the foundation needs to be fixed."
Seller: "Why, there ain't nothing wrong with that foundation. Besides, you can fix that for less than $500; I'll knock that much off."
We figure these two mule traders would settle somewhere around $5,000 difference, unless one of them insulted the other's coon dog during negotiations. Then there wouldn't be a sale at any price.
BTW, folks, the house is 1650 sqft; market value range (adjusted) supported between $85 - $96,000; adjustments include the $5 grand.
Thanks to all of you who answered. Your help is greatly appreciated.
