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New construction: as is vs subject to

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some of you guys have no idea how the world of RE works. These people need to close soon, and the sod can not be put in till spring because of weather

Sod and landscape are not health or safety issues. A person can live in a house perfectly fine with just bare dirt in front and yard. So it is not necessary to install sod for habitation. These people can not wait until the spring to close and move in just because an appraiser decides to make it subject to putting in sod. The money to put in the sod will be held in escrow till spring when builder has to put in the sod to get the escrow funds released to them for it. That ensures the work will be done.
 
J Grant said:
some of you guys have no idea how the world of RE works. These people need to close soon, and the sod can not be put in till spring because of weather

Sod and landscape are not health or safety issues. A person can live in a house perfectly fine with just bare dirt in front and yard. So it is not necessary to install sod for habitation. These people can not wait until the spring to close and move in just because an appraiser decides to make it subject to putting in sod. The money to put in the sod will be held in escrow till spring when builder has to put in the sod to get the escrow funds released to them for it. That ensures the work will be done.
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Whether or not the sod is installed is not the problem. If it is part of the contract to build. Then subject is not complete. Period. There is nothing that would stop the loan from closing. The last 5 I have done. All needed landscaping. One even needed the driveway. When I did the 1004d. It was marked not complete. They all closed. With escrow hold back.
 
No JG Grant is correct- The Lender only Uses the amount the Buyer and Builder agree too to hold into escrow and that amount of money $$$ is held is escrow and only disbursed to builder or seller when the job has been done . That $$$ number is not one made up or determined by the appraiser but the $$$ amount is a contract between the buyer and seller -IE builder. A cost to cure is a DOUBLE adjustment-because that cost to cure is now held in--the escrow account as hard cash in the escrow hold back which was a contractual-agreement between the buyer and seller --A Big Kudos to J.G. Grant as one of the few to understand the situation.
 
glenn walker said:
No JG Grant is correct- The Lender only Uses the amount the Buyer and Builder agree too to hold into escrow and that amount of money $$$ is held is escrow and only disbursed to builder or seller when the job has been done . That $$$ number is not one made up or determined by the appraiser but the $$$ amount is a contract between the buyer and seller -IE builder. A cost to cure is a DOUBLE adjustment-because that cost to cure is now held in--the escrow account as hard cash in the escrow hold back which was a contractual-agreement between the buyer and seller --A Big Kudos to J.G. Grant as one of the few to understand the situation.
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Right about what. She implies that the loan cannot close unless the appraisal is marked "as is". That is outright wrong. I have 5 recent closed new builds that say different. More on the way. I will be doing a lot of 1004d inspections in the spring. They are the easiest possible. No appt. necessary. Exterior only inspection.
 
Dublin ohio said:
Right about what. She implies that the loan cannot close unless the appraisal is marked "as is". That is outright wrong. I have 5 recent closed new builds that say different. More on the way. I will be doing a lot of 1004d inspections in the spring. They are the easiest possible. No appt. necessary. Exterior only inspection.
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As an appraiser, we don't get to say how or when a loan closes. We appraise the property.. That is teh end of our role You have 5 recent closed new builds that say different.? When an appraisal is done made subject to completion of X, when X is marked on the 1004 inspection as completed, the appraisal switches to " as is ".

I sold RE as a lic RE agent for over 5 years prior to becoming an appraiser so I probably attended more closings than you did - and though less common, parties do have the option and lenders can loan on a not finished property with the X portion repaired or finished after closing with the $ for it held in escrow. I did it 2 years ago on a property I sold - 3 months after closing, the item ( removal of a tree with roots near an electrical line ) was done and the $ released from escrow.

If the buyer and seller agree to hold landscape $ aside in escrow till work is done after closing, who the heck is an appraiser to insert themselves into a deal and say no you can't ?
 
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Dublin ohio said:
Whether or not the sod is installed is not the problem. If it is part of the contract to build. Then subject is not complete. Period. There is nothing that would stop the loan from closing. The last 5 I have done. All needed landscaping. One even needed the driveway. When I did the 1004d. It was marked not complete. They all closed. With escrow hold back.
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The buyer and seller amended/ changed, their contract to build when they agreed to hold the escrow portion of landscape money to be released pending the landscaping completion in spring. if appraiser wants they should ask for an initial change to contract addendum page.

Are you saying appraisers can tell a buyer and seller what they can and can not do, and forbid them from changing a contract ?
 
My answer was the Best.............hahahaaaa
 
Here is an example of what the appraiser can write in revision comments :

" As of X eff date, the appraisal was made "subject to " completion which included sod and landscape. The landscape and sod can not be done till Spring due to weather conditions. Lack of landscape /sod does not present an adverse safety or health issue. The buyer and seller have amended the contract to hold $10,000 in escrow, for completion of landscaping after closing. In lieu of a 1004 D inspection of landscape completion, there is $10,000 escrow hold for landscape work."

"The appraisal as of Y date is changed to "as is", because the contract has been amended by parties for buyer to accept the house in the as is condition without landscaping completed. "
 
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J Grant said:
Are you saying appraisers can tell a buyer and seller what they can and can not do, and forbid them from changing a contract ?
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What part of the construction contract changes when a lender does an escrow holdback?
 
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