HBU

[Gregory A Hicks]

I have an exterior only assignment for a property (no contact allowed) which is in a very rural location, the road has no public water per the County Water Department which I confirmed. I updated the Lender, they stated the prior full appraisal notes county water, and asked if this could be completed using a hypothetical condition that the subject was on county water.

 

[shrubberyvaluation]

I have an exterior only assignment for a property (no contact allowed) which is in a very rural location, the road has no public water per the County Water Department which I confirmed. I updated the Lender, they stated the prior full appraisal notes county water, and asked if this could be completed using a hypothetical condition that the subject was on county water.

I doubt they will pay for a county water hookup. Not sure why they would want a hypothetical unless the envision its gonna happen in the near future.

 

[Gregory A Hicks]

I doubt they will pay for a county water hookup. Not sure why they would want a hypothetical unless the envision its gonna happen in the near fut

I doubt they will pay for a county water hookup. Not sure why they would want a hypothetical unless the envision its gonna happen in the near future.

They are possibly repossessing this at some point and just wanted an update on the value. The hypothetical just matches what they have on the past appraisal which was a full, and they yet believe to be correct. The appraiser noted it was on county water, and so they requested this be completed the same.

 

[George Hatch]

You're valuing what is. Not what isn't and will probably not become.

Solve the problem. Figure out what the "as is" value in the current condition is. If there are other homes on the same road or other homes in the area without access to the County water system you can check their sales histories to see how the market has previously reacted to that factor.

You can't use an HC or EA to "support" an untruth.

 

[J Grant]

I have an exterior only assignment for a property (no contact allowed) which is in a very rural location, the road has no public water per the County Water Department which I confirmed. I updated the Lender, they stated the prior full appraisal notes county water, and asked if this could be completed using a hypothetical condition that the subject was on county water.

Are houses there serviced by a well?

How do the occupants get water to drink and wash dishes?

It sounds hinky to me that the last appraisal incorrectly put county water and now the lender wants you to make it HC as if they have county water. I would refuse.

 

[Gregory A Hicks]

You're valuing what is. Not what isn't and will probably not become.

Solve the problem. Figure out what the "as is" value in the current condition is. If there are other homes on the same road or other homes in the area without access to the County water system you can check their sales histories to see how the market has previously reacted to that factor.

You can't use an HC or EA to "support" an untruth.

View attachment 80459

This is the only road in the county without county water, there are only a couple homes on it, and of course no sales to support market reaction. It is pre foreclosure, so their looking for an 'as is' value. The County cannot quote a cost to connect as the home sits approximately a mile from the nearest tap.

 

[Gregory A Hicks]

Are houses there serviced by a well?

How do the occupants get water to drink and wash dishes?

It sounds hinky to me that the last appraisal incorrectly put county water and now the lender wants you to make it HC as if they have county water. I would refuse.

Definitely hinky. It is pre-foreclosure with no contact, and their looking of course for an 'as is' value.

 

[J Grant]

Definitely hinky. It is pre-foreclosure with no contact, and their looking of course for an 'as is' value.

If if is an AS IS value, then it CAN NOT be , at the same time, subject to an HC !
The two contradict each other. FWIW, why did you call the thread HBU? And why did you update the lender on the water instead of just doing the appraisal, putting well water and handing it in?

Refuse to make it subject to and ask if they want you to finish the assignment as is or not finish the assignment and charge them for work done.

State not enough data exists for a water service adjustment and that it was factored into the reconciliation toward the lower value range of the adjusted comps.

 

[George Hatch]

This is the only road in the county without county water, there are only a couple homes on it, and of course no sales to support market reaction. It is pre foreclosure, so their looking for an 'as is' value. The County cannot quote a cost to connect as the home sits approximately a mile from the nearest tap.

So neither this property nor the other homes have a sales history? Because the comparison doesn't need to consist of recent sales. You're not looking for direct comparables for your SC grid. You're looking for sales you can use to develop an adjustment factor you can import to apply to your current comps.

Your other alternative is to seek out sales in other similar counties and compare those to their respective comps.

 

[Gregory A Hicks]

Definitely hinky. It is pre-foreclosure with no contact, and their looking of course for an 'as is' value.

I updated the lender to see if they had a prior report that might show whether this is on private well or cistern because county records do not have this data.