• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Inadequate Heat

Status
Not open for further replies.

Hogpal

Freshman Member
Joined
Jun 4, 2008
Professional Status
Certified Residential Appraiser
State
California
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

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
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

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
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.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks