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Incurable Obsolescence?

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J Grant said:
FHA is either subject to repair , subject to inspection, or as is. I have no idea what you mean by based on a hypothetical condition. I agree with Carlos, if this particular property sounds beyond expertise to evaluate how to handle it no problem withdrawing. I've withdrawn from a few assignments and never regretted. When it is my decision to withdraw I do not charge for inspection or time spent, but the few times I made the decision I did not regret it.
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Yep...but hey I wasted my time and research. So they are paying. It's not my problem that someone was careless enough to sell/market/contract this property.
 
That's a business decision. If it was a client I did not care about, I'd charge them./ If it was a long time/good client, I would not charge them.

There is no law against crappy properties with issues being marketed going to contract. Since this is a crappy property as well as a flip deal (per your comments), might be a good decision to withdraw. Flip sales if the flip is within a certain # of months after prior purchase typically FHA will order 2 appraisals. Which in case of a property with possible drainage or construction issues....if one appraiser handles it very differently than the other.
 
DARREN GODFREY said:
Okay recently assigned a property for purchase...there are a bunch of of issues with the property. It is an FHA purchase by the way. The issues are:

1) Uneven concrete slab foundation- I don't know the history of the home MLS data is limited. It appears part of it may have been a garage or some kind of outbuilding previously. So in the improvemnents their are multiple areas of uneven flooring. I tried to attach some photos , but there are 5 inch deviations in floor height to 2 of the bedrooms and 1 bath , a 1-2 inch deviation leading from the kitchen and a 2'x2' area that deviates in the hallway, not as deep but bad enough they could not lay matching ceramic tile in this area. My concern is that this may be a safety hazard as well ...I can't imagine navigating through this home in a partially dark or emergency situation with out ending up sprawled across the floor. This is my main concern due to it being pretty near impossible to lay down another layer of concrete in an existing structure of this type without just starting over.

2) The improvements seem like a hodge podge of sections somehow connected with soffits and gutter built underneath each other.

3) It does not appear that the slope to the rear of the property would lead water away from the foundation.

4) Unusually shaped/sized bedrooms, the subject has 2 bedrooms that are about 7'x10 generally a the smallest bedrooms in this area are at least 10x10.

I just want some additional thoughts on how to proceed if at all.
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Is this construction type/quality typical? Would buyers accept these issues or run? FHA wants the occupants to be safe, the property to not fall in on itself and/or the occupants and for the property to be readily marketable to typical buyers. Sounds to me like you have at least a safety issue with the trip hazards, then possibly a security (marketing) issue with the construction type/quality, if buyers in your market would not accept the issues as non-issues (in other words not run). Refer to 4000.1 to see what it says about completing the assignment in these circumstances and how to go about it - this may be a case where FHA wants you to complete the appraisal anyways. I would only contact the client if the handbook says to, or if you just want to be nice in an obvious rejection scenario. Either way, get your ducks in a row first. Remember, the client rejects the property, not you.
 
http://proevalue.com/FHA-and-the-three-ss.htm

found this online a good summary of issues
 
DARREN GODFREY said:
Since I did all this work , I think I should write it for the lot value . Subject to inspections to prove that I am wrong. What do you think?
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Because the problem is very obvious. You don't have a slab and frame property below grade. if it was brick these issues could be remedied . I doesn't work.
 
DARREN GODFREY said:
Since I did all this work , I think I should write it for the lot value . Subject to inspections to prove that I am wrong. What do you think?
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Since you asked, I think that makes zero sense. What inspection will prove you wrong? If you don't understand the concepts of limiting conditions, assumptions and hypothetical conditions, you should be working under a mentor, is what I think. Also, you need to be certified to do FHA.
 
fcrecords said:
Since you asked, I think that makes zero sense. What inspection will prove you wrong? If you don't understand the concepts of limiting conditions, assumptions and hypothetical conditions, you should be working under a mentor, is what I think. Also, you need to be certified to do FHA.
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Lmao! I am certified , sorry if you think I don't past your muster test this is just an unusual circumstance which I have never run into. Thanks for the trolling and lack of constructive answer though.
 
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