How Important Is It To Match Bedrooms/baths

[Smokey Bear]

Okay, after talking to a friend who has a lot of experience, I've typed the following addenda. He recommended that I split my reponse into two addenda, one on the condition of the property, and one on the comp selection. This is my response to the conditino of the property (which appeared average in the inspection, but is reported in the TDS as ready to slide down the hill if you look at it sideways).

On 05/28/2005 I appraised the house located at zzz, Kensington, California. I was escorted through the house by the tenant, zzz. When I inspected the house, zzz pointed out all of the positive features of the house. None of the items mentioned in the contract or TDS were mentioned by her of seen by me during that inspection. The house appeared to be in average condition, as reported in the appraisal report.

I requested a copy of the contract and TDS on at least 3 occasions: when I made the appointment with zzz , when I visited the house and again just before I completed the report. Each time I was told that the documents had not been signed and was not available yet. The last time I requested the documents, zzz (the borrower) was very concerned that I not hold back the appraisal while waiting for the contract. As the contract was not available to me after 3 requests, I turned in the report without having reviewed the contract and noted the unavailability of the contract in the report addenda.

The appraisal "inspection" is a value inspection and is no substitute for an home/engineering inspection. The appraisal assumes that the house is sound, minus any noted defects. While I neither saw or was told of any obvious defect not otherwise reported, I am not an expert in identification of such items and borrower should always have an inspection by a certified home or property inspector and a structural engineer. The appraiser assumes all structural, system, or HVAC systems are in good working order if no such report is provided.

The subject property appeared to be in average condition at the time of inspection. No defects were reported to the appraiser by the tenant, and the tenant took great pains to point out all of the positive features of the property. If there are defects on the property, the lender is advised to consult any property and/or structural inspection reports that may have been completed for further information as to the true condition of the property.

Any comments before I send this in?

 

[Pamela Crowley (Florida)]

The appraiser only reports what is readily visually observable by anybody walking through or around the property. Whatever cannot be readily observed without moving anything, including floors and walls covered by personal property, is not reported on by the appraiser. If further actual condition of the subject property outside of what can be readily observed is wanted, a professional and competent home inspector and/or licensed contractor and/or professional building engineer would be necessary.

 

[Richard Carlsen]

Well Cynthia, you can keep writing addendums and reviewing TDS reports until you say something that makes everybody happy with your report.

Or you can tell them that what they are requesting is to incorporate post-effective date information into your report and post-effective date sales agreements. I would tell them that this would have to be considered an Update with a new effective date. You wrote the report based on what you saw and had available to you at the time. To revisit the whole thing now would constitute a new assignment. Update fee at least in my opinion.

BTW, I would not make excuses in any addendum for what was revealed after the report. It makes your report sound too defensive. Make statements such as "No copy of the purchase agreement was provided despite 3 specific requests. Therefore, the appraiser is unable to comment on terms or conditions of the sale." Learn to put some standard statements into the report that helps to limit your liability. But don't sound defensive about it.

You might want to stop calling what you do at a house an "inspection" and try referring to the process at the house as "data gathering". If you say you are inspecting a property, it carries a different connotation that gathering data for use in the value analysis of the property.

 

[Pamela Crowley (Florida)]

Excellent points, Richard.

 

[Verne Hebert]

Sounds like you got yourself a green underwriter.

Give me a break. You have an old bungalow, that 50 years ago was a weekend cabin; with a killer view of the bay, and she is bothered by the utility of one bath. She should be concerned that it is underimproved with a land to improvement ratio of what, 18 %, and is soon to be a "scraper". If one can afford the hills, they can afford a second bath if they want one.

It sounds to me like you understand the market forces of demand.

 

[jonathan asbury]

Cynthia,

I know that area too, the uw is just being a pain in the but. The adendum looks great + what richard said. I would have given them 3 similar view/location comps and 1 3/1 as the forth comp.

good luck,

jonathan