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How important is it to note in the appraisal report the following

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Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Second walk through for Pastor and Church today>

Just how important is it for an appraiser to note in the appraisal report that the subject basement has no sump pump system or no floor drains that drain into a sump system or a sewer system taking up wanted water from the basement in case of heavy rains or a water line break.

At the same time in the same report, there was no mention of the shared driveway and that has no easements or maintenance agreement in place, this is a .33 mile long gravel driveway. No snow plowing agreement in place either.

The realtor told the prospective buyers (My Pastor & Church) that the two questions I ask about the appraisal would cause no problems in closing the loan. That those things could be worked out after he bought the house and 6 acres.

Am I being just too picky? After all it is an investment for the church as they are buying the property for a Parsonage for the current Pastor or future Pastors to use if the need arises.

My self I would not want to buy a property with these two problems not being worked out before the sale. Yes I did see and read the appraisal report that was done at the end of July on this subject property.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
Is the basement level BELOW the groundwater level? Is the final grading at the base of the house finished so that run-off water flows away from the house? Are there gutters and downspouts?

A free standing sump pump can be purchased or even rented.

In California....dunno about Wisconsin.....there is a statute that REQUIRES all property owners that benefit from a private access road share in all upkeep and maintenance of that roadway. No agreement is necessary, although it would be nice if there was an understanding by all property owners to what level of maintance should be performed.

But to answer your question, YES, those issues should have been addressed in the report and, the Realtor should also have disclosed them.
 

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Is the basement level BELOW the groundwater level? Yes Is the final grading at the base of the house finished so that run-off water flows away from the house? Should be but appears it needs to redone in places. Are there gutters and downspouts? Yes

A free standing sump pump can be purchased or even rented.

In California....dunno about Wisconsin.....there is a statute that REQUIRES all property owners that benefit from a private access road share in all upkeep and maintenance of that roadway. No agreement is necessary, although it would be nice if there was an understanding by all property owners to what level of maintance should be performed. No property is allowed to be land locked. This property could have access to the township road. But it would cost about $25K to put a driveway in. It much simpler to use the current shared driveway that corsses the others land. No doubt that is why it was put in to start with.

But to answer your question, YES, those issues should have been addressed in the report and, the Realtor should also have disclosed them.


That was my thinking.

Thanks for you quick answer.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
My repeated mantra: report what you find. The shared driveway is a big issue in that the property can end up landlocked. You can make an assumption that a driveway easement is in place, with a flag that the lack of the easement may affect the value. Don't make it "subject to" as this is a legal issue. Check the Fannie regs through www.efanniemae.com.
 

AnonApprsr

Elite Member
Joined
Jan 21, 2008
Professional Status
Certified Residential Appraiser
State
Massachusetts
Don't let the pastor buy this house.
 

Wayne Tomlinson

Senior Member
Joined
Jan 25, 2005
Professional Status
Certified General Appraiser
State
Illinois
RAy, All the things that you mentioned should be included in the appraisal report.
The drainage factor is of concern, but if it is an older house (I don't know just how much older it should be, but one with substantial verifieable history of no water problem, then perhaps it is not a problem, even if the normal water table is higher. That said, when the surrouding land slopes toward the home then you are bound to have problems eventually.

One of the best ways to counter the Realator's claim is to pickup your papers and walk out the door. That has the effect getting their attentionl.

When you buy the house, you buy the problem. The appraiser should note all those things that they are capable of observing with typical appraiser inspections.

Wayne Tomlinson
 

Wayne Tomlinson

Senior Member
Joined
Jan 25, 2005
Professional Status
Certified General Appraiser
State
Illinois
Looking back, I should have just endorsed Anon's post above.

Wayne Tomlinson.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
RAY - IMO, unless you were hired to Review that appraisal appraise the subject INDEPENDENT of it.

For the record - when offered prior appraisal or possible comps by owners or real estate agents - I ROUTINELY decline.

Their opinions are theirs, Mine are Mine.

Suggest FILING that appraisal for a USPAP specific complaint to the State - for now -

complete your INDEPENDENT appraisal and get paid.
 
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Hank Outlaw

Member
Joined
Feb 17, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Just a thought...

It may be a good idea to mention your relationship with the buyer to the client or note it in the report. I was assigned an FHA appraisal years ago, and the buyer was my Pastor. When I arrived to inspect the property, the seller (Navy Chaplain) and listing agent were in the front yard talking. The listing agent came up and asked if I had shown this property to my Pastor. I told her I had not. She said that the seller would rather that I didn't do the appraisal. I said, No problem... I understand... I do not want any hint of a conflict of interest, left the scene and called the lender (who BTW, did not have a problem with it). Had I appraised that property, I would have conditioned the appraisal on a new roof, as the existing shingles were old, curling, puffing up, and looked like they were way past the end of their life. As it turned out, the other FHA appraiser did not call for a new roof. I don't know how many years they got out of that roof, but had I appraised the property, I'm sure somebody would have suspected I was acting unethical in some form or another.

BTW, I wouldn't be satisfied with what the listing agent said... even though we all know that they know everything about the property (sarcasm intended... and I'm a broker) and are experts with regard to basements, water leaks, mold/mildew, etc. and will stand by their word all the way through court when they get sued (along with you) months or years down the road when the basement turns out to be an underground pond under the house! Be careful... very careful!!! Especially if the basement has new carpet, paint, paneling, etc., or if there are boxes and things stacked up against the wall (to cover the stains on the wall).
 

Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
I was at this property as a buyer not as an appraiser. It is our church that is buying the property.

The appraisal was offered to us to look at to see that the property was really worth what the appraisal said it was. that it is was an excellent appraisal of the property and the asking price was what the appraisal was.

I might also add that the appraised value was a bit high because the appraiser had included the basement bedrooms that were not finished as well as other areas of the house that still needed some work to be completed.

This was a flip, bought as REO and the owners were rehabing it on the main level and the lower level. The appraiser had inclueded the basement as GLA in the report as well.

As an investor looking at the house for the church my advise to the other members was to discount the appraisal $35K or about 12%. Have the easement problems and drainage problems corrected as part of the offer to purchase if the church were to move forward with there offer.

Much better home then the HUD/MFG we had looked at yesterday morning.
 
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