shrubberyvaluation
Elite Member
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- May 2, 2012
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- Appraiser Trainee
- State
- Maryland
Yea if they want to proceed you could say based on inspection this is more complex than anticipated and my fee required would be xyz.
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Foundation/Structural issuse
- Thread starter jalacart
- Start date
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Overimprovement
Senior Member
- Joined
- May 31, 2017
- Professional Status
- Certified Residential Appraiser
- State
- Kentucky
Most traditional lenders will run from bad foundation issues, even if they get mitigated. With this being a slab as well, that is REALLY gone be some $$. Can get well into the 5 figures quickly.
Jerry Bone Jr
Senior Member
- Joined
- Feb 23, 2004
- Professional Status
- Licensed Appraiser
- State
- Oregon
CB4
Submit a report from a licensed structural engineer stating that the foundation is structurally sound and capable of supporting the structure for the life of the loan.
USPAP defines “Extraordinary Assumption” as “an assignment-specific assumption as of the effective date regarding uncertain information used in analysis which, if found to be false, could alter the appraiser’s opinion or conclusions.”
Submit a report from a licensed structural engineer stating that the foundation is structurally sound and capable of supporting the structure for the life of the loan.
USPAP defines “Extraordinary Assumption” as “an assignment-specific assumption as of the effective date regarding uncertain information used in analysis which, if found to be false, could alter the appraiser’s opinion or conclusions.”
Russ Kitzberger
Senior Member
- Joined
- Jul 3, 2007
- Professional Status
- Certified General Appraiser
- State
- Ohio
I have this all the time in my insurance diminution practice as well as subject to repairs/completion investment practice.
The engineers are separate experts and you do it as a hypothetical; necessary for the intended use of the project and comparison.
If your engagement say is c5 make it c4, then tell client it is c6.
If they want a cost to repair, you said you can't give that competently, so back out.
If they want to do the appraisal "per plans and spec hypothetical" and your spec/hypotehtical will be "same amenities, overall condition is c4". Same way you appraise a new build when there is a house there to tear down or a vacant lot; hypothetical.
Just need to know the right way to do it and not get hyped up by the offering of warranties for 10x the cost.
We have engineering to float buildings using monolithic systems. There are high rises in Dubai built where the sea used to be. Anything is possible with the new technology.
Foundation issues literally just take some digging to figure out.
The engineers are separate experts and you do it as a hypothetical; necessary for the intended use of the project and comparison.
If your engagement say is c5 make it c4, then tell client it is c6.
If they want a cost to repair, you said you can't give that competently, so back out.
If they want to do the appraisal "per plans and spec hypothetical" and your spec/hypotehtical will be "same amenities, overall condition is c4". Same way you appraise a new build when there is a house there to tear down or a vacant lot; hypothetical.
I have an investor that loves them. Makes $ redoing block basements and flipping a few years later.
Just need to know the right way to do it and not get hyped up by the offering of warranties for 10x the cost.
We have engineering to float buildings using monolithic systems. There are high rises in Dubai built where the sea used to be. Anything is possible with the new technology.
Foundation issues literally just take some digging to figure out.
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