How to handle incomplete new house on final inspection report

[bnmappraisal]

One I did in July ... I was told property was "complete" ... shared photo with client ... client said to complete SUBJ TO it being "completed" (new construction)

 

[Terrel L. Shields]

My fav of long ago was no floor covering, no paint on walls, no countertops, no trim around interior doors...and no interior doors, including bathroom. Just shower curtain hung over bathroom door on a curtain rod and the people had been living in it a couple months.

 

[Deleted member 128537]

1. If the walls are primed I don’t sweat it.
2. Must be able to do 3 S’s.
3. Don’t sweat small items like a few pieces of trim that need to be put on.

But contractors are notorious for being vague. One time asked if done...no bathrooms worked, sink in kitchen not in, etc. I was mad as a hornet. Frankly I wish they wouldn’t send us out until the people have moved in. Then we know it’s basically done.

 

[J Grant]

if paper is covering the floor I lift it up in a few places and photo the floor beneath. They leave paper cover on till the end to prevent worker tracking in dust etc. I would call a house complete with paper covering the floor , it's just paper, as long as the other work is done, if it needs a few switch plates or one more coat of paint I describe that as minor items that do not materially affect value and mark as complete. Anything beyond that though I would make subject to completion.

 

[bnmappraisal]

I tend to agree JG and is why I went back to the client. I sent the pic with a little description. They came back saying they wanted it "completed"

I just report lol. It's their loan, so I let them make the decision

 

[Econobot]

I did an appraisal for a purchase recently, the guy was actually an appraiser who used to do commercial work and some limited residential. He told me had a piece of paper hanging on his wall with the words "NO RED FLAGS" written on it. He encouraged me to do the same....something to be said for that.

 

[Evincere]

Just wondering how other appraisers handle incomplete items when performing final inspections.

Well, WRT your question, thus far you have 16 varied answers. As with any other report type You have determined SOW and clients expectations, correct?

Just pick / choose/ select the answers from those who you have determined / believe to be your “peers” and you’re good to go. Keep references, responses, And their names in your work file so you can later cite your sources, if questioned.

As with with other Appraisal questions that are asked and answered here or elsewhere, according to USPAP

Scope Of Work Rule, lines 381-383, which someone quoted in its three line entirety to prove what it says is true:
Comment: The scope of work is acceptable when it meets or exceeds:

• the expectations of parties who are regular intend ended users for similar assignments
• what an appraiser's peers' actions would be in performing the same or similar assignment

APPRAISER’S PEERS: other appraisers who have expertise and competency in a similar type of assignment.

“

BTW, If your client tells you "this is what we expect" and then they tell you "this is what other appraisers have been doing with these" that information will be sufficient to meet both tests. You don't need to go out and do 75,000 interviews all by yourself.”

 

[Vermonter]

Depends on the lender also.

Exactly.

Have one credit union that requires everything complete and move in ready, down to touch up paint and full finish clean. Property must be spotless with no little piles of trash and even the stickers off the appliances and windows. Always warn the builders that little unfinished items will not fly with this client so it needs to be DONE done for the final.

Others are fine with a small cost to complete for minor things (within reason).

Knowing your clients and their expectations helps, but anytime the property isn't move in ready, I will let the client know and let them decide.

 

[Mr Rex]

1. If the walls are primed I don’t sweat it.
2. Must be able to do 3 S’s.
3. Don’t sweat small items like a few pieces of trim that need to be put on.

But contractors are notorious for being vague. One time asked if done...no bathrooms worked, sink in kitchen not in, etc. I was mad as a hornet. Frankly I wish they wouldn’t send us out until the people have moved in. Then we know it’s basically done.

Yah the typical buyer is going to pay full price and accept primed walls...NOT!

 

[Deleted member 128537]

Yah the typical buyer is going to pay full price and accept primed walls...NOT!

Most contractors in my area don’t paint the walls. The owner does. I guess you live in a lazy area. And the primer they use is basically a flat white. Very few new construction homes that I do a final inspection on are painted in colors. So do you ding the purchase of a house that is painted in a color the owners don’t like?