Lgi Value When The House Is Structurally Damaged

[Dave Dyal]

If the improvements appear to have no contributory value, I have appraised a property as land only with a negative adjustment for demolition. If there is extensive foundation/joist damage, the cost to bring to average condition would be greater than the value after the repairs. Thus land only less demo.

 

[hastalavista]

LGI is the VA classification of liquidation appraisal.

Thanks, Mike.

I had the same question as Howard. Up to the point of your explanation, there was nothing to indicate in the post this was a VA-related matter (if it was there, I didn't see it).

I have to ask: Is LGI an acronym? ("Liquidation, Government Issue"? )

 

[CANative]

"Recommend inspection by structural engineer. The appraiser is not a structural engineer. Should the subject property have structural damage; the appraiser reserves the right to amend the report based on those costs."

"Subject to inspection" requires the use of an EA (that nothing needs to change.) It is obvious that something has to change so the use of an EA is no appropriate.

 

[Don Clark]

If the improvements appear to have no contributory value, I have appraised a property as land only with a negative adjustment for demolition. If there is extensive foundation/joist damage, the cost to bring to average condition would be greater than the value after the repairs. Thus land only less demo.

Again, not going to be acceptable to VA. VA wants an opinion. VA does not guarantee a land only LGI. The appraiser is free to consult with anyoe they want to but the VA Appraiser has to provide the lender and VA an opinion of value, even if it is negative value.

 

[Mr Rex]

Contact the local franchise of ServPro, Service Masters, Rytech or other water damage restoration companies for prices and comps.