Hypotehtical condition

[gorillakimchi]

Your first mistake was having only a 'brief conversation' with the owner after they mentioned doing remodeling. Remodeling to the owner may mean painting only. But your imagination is thinking what. Might be nothing, or something. Unless you desperately need a trip fee i would have more knowledge of what remodeling, maybe yes, or no, affecting your appraisal.

I have direct lenders who appreciate knowing ahead of time a possible major problem, or maybe it's just my problem perception of a no problem in reality.

Normal conv/FHA financing is either 'as is or subject to'.

Got it. I think the owner is a flipper or having many or some properties. He sounds kinda professional when I was talking. Anyway, I will have some more detailed conversation next time.

 

[gorillakimchi]

If the as is appraisal comes in lower than needed for the refi/equity loan, you will be asked to use a HC. Make sure you charge appropriately for that and have plans and specs in writing. Make sure you have a convo with you client so they know what the owner has told you. This may be a surprise to them, or not.

Noted. thanks!

 

[Tom D]

Let me repeat, fannie/FHA don't do h/c condition values. Equity loaner don't do h/c. Rhab/remod loans do h/c, in which case the lender knows that there is work to be done and they would have said to do subject to and maybe as is. I don't know any normal residential lenders that would loan on a h/c better condition. Now if that loan is non residential loan, then the lender say what they want.

The house is a c4, but h/c report say pretend it could be a c2, so that value would be... Yea, see how far that c4 gets to being stiped without the work being done.