maugust
Sophomore Member
- Joined
- May 22, 2009
- Professional Status
- Certified Residential Appraiser
- State
- Maryland
Hi,
I completed a condo conversion recently. A row house in Washington, DC that was converted into four condos, and thoroughly renovated. The property is in similar condition to new construction, except for one thing. Tile flooring in two places was damaged and in the process of being replaced at the time of my inspection. I completed the report subject to the repair, and provided an estimated cost to cure. However, the client has come back and requested that the report be done as-is because the damaged flooring is not a health and safety concern. They suggest making a straight adjustment across the board in the sum of my estimated cost to cure. I believe that this would not be a supported adjustment. It presumes that cost is equivalent to value, which is not the case. The actual impact of marketing a property that has been thoroughly renovated and is in new condition, but has damaged flooring cannot be proven by the open market, because it would take extraordinary circumstances for anyone to attempt to market a property in good condition without repairing the damaged flooring. And thus, no such comparable properties exist to extract a supported adjustment.
How would you handle this request?
I completed a condo conversion recently. A row house in Washington, DC that was converted into four condos, and thoroughly renovated. The property is in similar condition to new construction, except for one thing. Tile flooring in two places was damaged and in the process of being replaced at the time of my inspection. I completed the report subject to the repair, and provided an estimated cost to cure. However, the client has come back and requested that the report be done as-is because the damaged flooring is not a health and safety concern. They suggest making a straight adjustment across the board in the sum of my estimated cost to cure. I believe that this would not be a supported adjustment. It presumes that cost is equivalent to value, which is not the case. The actual impact of marketing a property that has been thoroughly renovated and is in new condition, but has damaged flooring cannot be proven by the open market, because it would take extraordinary circumstances for anyone to attempt to market a property in good condition without repairing the damaged flooring. And thus, no such comparable properties exist to extract a supported adjustment.
How would you handle this request?