New build with temporary countertops

[TerryRohrer]

This does not have to turn into a big deal, unless an appraiser thinks it is better to hold up a closing for months and have borrower pay to live out of a hotel because of a counter top ( sarcasm )

An odd sentiment coming from an appraiser who claims to value competence and honesty among appraisers. Ever seen particle board that absorbs a little moisture? Ever have any desire to eat off old particle board? There is a difference between typical and atypical/hazardous. The appraiser shouldn't even be asked this. The lender can deal with it just fine rather than demanding that an appraiser with a license subject to sanction either jump through extra hoops for no pay to protect themselves from a situation where there is no data just to save the lender a couple of minutes time making a note in their file.

 

[Dublin ohio]

A lender doing an escrow is not the appraiser's concern.

Exactly. But the appraiser saying it is not complete per plans and specs is also a lender problem. Not the appraiser's problem. It is what it is. The agreement between builder and buyer concerning the countertops is also the lenders problem. I have yet to see a deal fail to close because of minor incomplete items. The last 5 "final" inspections I have done. Had no driveway and no landscaping (both part of contract). I mark them incomplete and let the lender decide what to do. But on the bright side. I will have 5 1004ds when the weather gets better that only require a exterior inspection.

 

[Mark K]

The lender I am going thru says that as long as the appraiser marks that the home as completed and it is as-is and not subject to repairs they are fine with it. The home would be complete other than the counters. Is this even possible?

In other words, ITS NOT COMPLETE.

I don't see a problem... as long as the builder wants to revise the plans and specs, the buyer agrees to said changes, and the appraiser revises the report (lowers the value) to reflect a $20 piece of wood product in place of a real counter top. Then it would be OK to sign off as complete. Otherwise, its not complete per plans and specs.

Any appraiser agreeing to do what your lender is asking is either incompetent or ethically challenged.

 

[J Grant]

How does that make sense. The appraiser doesn't hold things up by reporting the truth. The lender can decide what to do. We can either appraise it as having the temporary counters or we can say its not complete per plans and specs and is only missing countertops. Saying its complete when its not is not something I would do. If lender can't figure it out that is their problem.

The truth is, it is complete. The appraiser discloses that a lower quality counter is installed and buyer plans to substitute the better quality cabinet after closing.

There is no lie in there. The only thing temporary about the counter is buyer plans to replace them for a nicer one.

 

[Dublin ohio]

The following is what the 1004d says. Sounds pretty straight forward to me.

HAVE THE IMPROVEMENTS BEEN COMPLETED IN ACCORDANCE WITH THE REQUIREMENTS AND CONDITIONS STATED IN THE ORIGINAL APPRAISAL REPORT?

 

[shrubberyvaluation]

The truth is, it is complete. The appraiser discloses that a lower quality counter is installed and buyer plans to substitute the better quality cabinet after closing.

There is no lie in there. The only thing temporary about the counter is buyer plans to replace them for a nicer one.

Who cares what the buyer plans to do after the purchase, not your job to guess that. Just report based on plans and specs and what you see either when you do the appraisal as-is when complete or at the final. Not complete per plans and specs but a functioning house is fine as long as you check no on a 1004 if you appraised it based on the other countertops.

 

[jay trotta]

The following is what the 1004d says. Sounds pretty straight forward to me.

HAVE THE IMPROVEMENTS BEEN COMPLETED IN ACCORDANCE WITH THE REQUIREMENTS AND CONDITIONS STATED IN THE ORIGINAL APPRAISAL REPORT?

Agreed and if they haven't (countertop part of the specs?) somebody has the Order for the countertop somewhere, include it and the back-order notice. The Client can then decide on what approach they consider the most appropriate.

 

[Tru Red]

Hello..

I am a mortgage broker doing an FHA loan on a new build. Due to supply shortages / labor shortages, etc., the countertops the buyer ordered aren't going to be available for about 10 weeks. The builder is planning on installing "temporary" countertops (I'm guessing particle board) with the correct functioning sink and says they can get a C/O from the county and they have done this in the past. They are proposing to close on sale to the buyer and the countertops would be installed after closing. The lender I am going thru says that as long as the appraiser marks that the home as completed and it is as-is and not subject to repairs they are fine with it. The home would be complete other than the counters. Is this even possible?

Thanks for the input.

The simple answer to your question is YES. It is possible. Had this exact thing happen on a VA home several ago. As long as there was a counter it was fine. This should be easily worked out between the appraiser and person of contact for the lender prior to the appraiser submitting the appraisal report.

The quality of one temporary counter in a brand new home would not have any effect on the overall opinion of value anyways.

Common sense. Many don't have that these days.

 

[glenn walker]

The truth is, it is complete. The appraiser discloses that a lower quality counter is installed and buyer plans to substitute the better quality cabinet after closing.

There is no lie in there. The only thing temporary about the counter is buyer plans to replace them for a nicer one.

The FHA Lender can do a escrow hold back out of loan -Builder and buyer just give a estimate of cost for final counter tops and cabinetry. The appraiser can also include that estimate in his addend as Exhibit -A -His value will not change but some may want him to go back out and do a 1004-D to assure lender work has been completed before they release the funds to releases to the builder etc. This will be very common again as interest rates are rising -FHA in 4 months has increased by at least 1.5% and in two weak that may be 2%
Anyway yes it can be done and it sis done all the time

 

[shrubberyvaluation]

The simple answer to your question is YES. It is possible. Had this exact thing happen on a VA home several ago. As long as there was a counter it was fine. This should be easily worked out between the appraiser and person of contact for the lender prior to the appraiser submitting the appraisal report.

The quality of one temporary counter in a brand new home would not have any effect on the overall opinion of value anyways.

Common sense. Many don't have that these days.

If particle board countertops in the kitchen are valued the same or similar in your market as granite or quartz that is perfectly fine. Not everyone's market is the same. They are not valued the same in most cases I run across.

I'm just there to appraise and report, the lender can make loan decisions.