Inadequate Heat

[Hogpal]

Recently completed inspection of a home with inadequate heat - gas fireplace in living room the only source of heat for a 3br/2ba home of apprx 1600 SF.

I consulted with the client prior to completing the report and the order has been placed on hold while the lender is consulted.

Should I have completed the report and described what I found without giving the client an opportunity to change/cancel the order? On the few prior occasions I've encountered this situation the client has cancelled the order - with a small cancellation fee - and not approved the loan. On one occasion the lender wanted to go forward with a cost-to-cure functional utility adjustment for the cost of adequate heat.

 

[Richard Carlsen]

Question: How do you know it is inadequate?

Are you a qualified HVAC person or it it just a guess on your part?

If you are not qualified, then I would complete the appraisal, based on the markets reaction to heating with this gas FP and condition the report on certification in writing that the heat source is adequate to heat the house. If it is adequate, you have an "expert" saying so. If it is not adequate, it will have to be made so before you can remove the condition and the appraisal can be used for lending. Either way, you, the appraiser, who is typically not qualified to make that determination, has not attempted to get certain body parts caught in a ringer by doing something he is not qualified to do. And you have completed the assignment fully for which you will be well paid.

 

[Mike Boyd]

I agree with Richard. A "loopy" lender will attempt to find an appraiser who will not be as thorough as you and you lose either way.