How best to deal with deferred maintenance - DOD appraisal

[PS111222333444]

Client of an office building being appraised with a date of death early this year gave me a large list of deferred maintenance issues including rooftop HVAC unit replacement. I'm assuming the client would like to reduce the value by these items but have no proof. I'm told the HVAC is 25 years old. How best to account for deferred maintenance in this situation?

Thanks for the input.

 

[PS111222333444]

Client of an office building being appraised with a date of death early this year gave me a large list of deferred maintenance issues including rooftop HVAC unit replacement. I'm assuming the client would like to reduce the value by these items but have no proof. I'm told the HVAC is 25 years old. How best to account for deferred maintenance in this situation?

Thanks for the input.

Really? Not even a comment from the big guns?

 

[Terrel L. Shields]

DOD = "as is"
So estimate deferred maintenance of comps, adjust accordingly. I would not adjust $ 4 $ based on cost to cure however. Most DOD appraisals are wanting a high value unless an estate tax is an issue.

 

[glenn walker]

DOD- are completed in "as-is" condition and not "as repaired " So I would Just factor those kinds of things into your overall physical condition rating, and if you have a comp or comps in superior condition, then adjust them , but you also need to be careful to not let the estate direct you towards a low or predetermined value. Whats kind of weird is most estates are looking for the highest value because of the new stepped up cost basis. Anyway you can comment in the report that the estates POC gave you a list of deferred maintenance and it was considered or factored into your condition adjustments and then be done.

 

[PS111222333444]

DOD = "as is"
So estimate deferred maintenance of comps, adjust accordingly. I would not adjust $ 4 $ based on cost to cure however. Most DOD appraisals are wanting a high value unless an estate tax is an issue.

Thank you for the input -

 

[PS111222333444]

DOD- are completed in "as-is" condition and not "as repaired " So I would Just factor those kinds of things into your overall physical condition rating, and if you have a comp or comps in superior condition, then adjust them , but you also need to be careful to not let the estate direct you towards a low or predetermined value. Whats kind of weird is most estates are looking for the highest value because of the new stepped up cost basis. Anyway you can comment in the report that the estates POC gave you a list of deferred maintenance and it was considered or factored into your condition adjustments and then be done.

Great info. - Very much appreciated!

 

[PS111222333444]

DOD- are completed in "as-is" condition and not "as repaired " So I would Just factor those kinds of things into your overall physical condition rating, and if you have a comp or comps in superior condition, then adjust them , but you also need to be careful to not let the estate direct you towards a low or predetermined value. Whats kind of weird is most estates are looking for the highest value because of the new stepped up cost basis. Anyway you can comment in the report that the estates POC gave you a list of deferred maintenance and it was considered or factored into your condition adjustments and then be done.

Thanks! Great info.