New condition property with damaged flooring "as is."

[alebrewer]

Also - all you've offered is your opinion of what you'd discount it for. And as much as I know you'd like to believe it is, DTB, that is not 'market support'. That is one person's (IMO very misguided) opinion.

 

[George Hatch]

Just the fact that appraisers - whose day job is to analyze the market and analyze sales transactions for value - have varying opinions on the discounts applicable to this repair should be considered instructive.

You don't want to let the small dollar amount obscure the applicability of the methodology. Even if you conclude that the value of the buyer's efforts and risks and cash flow to undertake this particular repair is $0 that's still a value judgement. Whereas outright ignoring that aspect of the equation just because of the dollar amount might not be a good plan.

And just for the record, you are exactly the first appraiser we've ever had difficulty explaining this to, so that's saying something, too.

 

[DTB]

so you'd adjust your MV down by $9k for this: " Tile flooring in two places was damaged and in the process of being replaced at the time of my inspection."? (a) I sincerely would love to be a GC in your market, and (b) good luck finding market support for that kind of adjustment...

You're not tracking very well are you? The discussion of 9K was relative to George's posts about a $3,000 cost to repair. So yes I would adjust down 9K for the 3K repair that's needed.

Not sure why you want to be a GC in my market? Somehow you think he's making out like a bandit? Why?

My $2 back for each $1 spent is MARKET based, you think I could make this adjustments on properties that I've purchased if it were out of whack with market expectations.

Maybe you are able to operate in a vacuum, I've never been so lucky. It's very competitive where I roll.

 

[Terrel L. Shields]

Gonna drop this one if it's ok with you?

One question. Do you work in Dallas? If so are there 10 stories in your office building? I thought so.

 

[alebrewer]

One question. Do you work in Dallas? If so are there 10 stories in your office building? I thought so.

(a) please tell me how answering this (again) inane question is even remotely relevant to any discussion about cost to cure and/or supporting adjustments? (b) it's been my experience that folks who ask questions like that turn out to be trolls...

 

[TRESinc]

Your answer did not reflect real world market reactions, therefore...

I can only go by what you post.

not necessarily true. when i bought my home the inspection found loads of mold in the attic (kitchen stove vent and bathroom exhaust vent both just went into the attic, which was a hip roof without any soffit venta and only a ridge vent that was about 1/2 of the width of the house). brought in a remediation company who estimated $5k for repairs. i countered my offer by $5k less -or- having the seller make the repairs. seller gladly took $5k off the price, so in my example with real world real estate experience as a home owner, home seller and appraiser the discount was the exact amount of the repair required. if i had lowered my offer by more, say $7k or $10k, the deal would not have completed.

 

[alebrewer]

not necessarily true. when i bought my home the inspection found loads of mold in the attic (kitchen stove vent and bathroom exhaust vent both just went into the attic, which was a hip roof without any soffit venta and only a ridge vent that was about 1/2 of the width of the house). brought in a remediation company who estimated $5k for repairs. i countered my offer by $5k less -or- having the seller make the repairs. seller gladly took $5k off the price, so in my example with real world real estate experience as a home owner, home seller and appraiser the discount was the exact amount of the repair required. if i had lowered my offer by more, say $7k or $10k, the deal would not have completed.

Sorry TRES - real world experience doesn't count as real world experience unless DTB says it does...

 

[George Hatch]

So did you catch his point that he apparently considered countering with less but decided not to in order to not kill the deal? It looks to me like in that situation the buyer concluded that the seller had more alternatives. During a down market when it's the buyer who has the advantage that might not be the case.

$0 is a value, too.

 

[TRESinc]

So did you catch his point that he apparently considered countering with less but decided not to in order to not kill the deal?

that's not correct. at the time i never considered asking for more than the repairs were going to cost. i wasn't trying to rip off the seller or gain something i wasn't entitled to. i only wanted the house to be in safe, sanitary and livable condition.

-edit-

we (buyer and seller) had already agreed to a purchase price contingent on the inspection. when the inspection found there were $5k in repairs necessary we renegotiated the contract to cover the repair cost.

 

[alebrewer]

So did you catch his point that he apparently considered countering with less but decided not to in order to not kill the deal?

e.g. the fact that a lower offer would have killed the deal means that the lower offer would have been, wait for it...... below market. Or is that not real world either?