New Property Without Garage Doors

[Tumbuktu]

Assignment is Refinance. It is a brand new high-end property. There are 'No Garage Doors' [See Photograph] and borrower says he has no intention to put garage doors in near future and wants the property 'Appraised As-Is'. Besides 'Garage', there is 'No Fence', 'Exterior Kitchen and Grill' are Incomplete, No Landscaping' etc)

• Should this 'Incomplete Garage' be treated as a 'Carport'?
• Should this property be even treated as C-1 Condition, (If Hypothetical Condition - Subject to Completion is not to be used)
• Can 'Cost to Cure' be used and property still qualify in C-1 Condition

As always suggestions and guidance would be appreciated.

 

[JTip]

No Garage Doors = Carport

 

[J Grant]

Assignment is Refinance. It is a brand new high-end property. There are 'No Garage Doors' [See Photograph] and borrower says he has no intention to put garage doors in near future and wants the property 'Appraised As-Is'. Besides 'Garage', there is 'No Fence', 'Exterior Kitchen and Grill' are Incomplete, No Landscaping' etc)

• Should this 'Incomplete Garage' be treated as a 'Carport'?
• Should this property be even treated as C-1 Condition, (If Hypothetical Condition - Subject to Completion is not to be used)
• Can 'Cost to Cure' be used and property still qualify in C-1 Condition

As always suggestions and guidance would be appreciated.

View attachment 31710

Not relevant if it is a refinance, since the appraisal is based on a hypothetical sale ( what the most probable price property should bring on the open market )

So how would the typically motivated buyer view the subject, as a garage missing doors, and they would have to pay install doors, or as a carport ( I suspect they see it as a garage missing doors)

Is there an overhead motor and rails in place? Was the area planned as a garage, and this bozo just does not want doors there?

Who cares about a fence or ext kitchen or grill? That is not living sf in the dwelling. There is no landscaping, or just sod around the house ? No landscaping usually is a deficiency as as market expected, whether a lender considers a property complete without landscaping might be their call.

C1 imp applies as these are repair items , they unfinished items that can affect value, but as they are not repair issues do not affect C 1 rating if a new built home.

 

[Terrel L. Shields]

As is, the value is cost to cure adjustment. So who is the lender? FHA? VA? Fannie Mae?

Everyone handles it differently. So the owner wants it appraised "as is" but he/she isn't the lender are they? What do they want you to do?

PS - how do you "refinance" a "brand-new" property? Converting from construction loan to permanent financing?

 

[Tumbuktu]

Who is the lender? FHA? VA? Fannie Mae?

• Fannie Mae (It is not FHA or VA)

So the owner wants it appraised "as is" but he/she isn't the lender are they?

• Borrower didn't exactly use the words 'As-Is' but he said, he doesn't intend to put garage doors, do landscaping, finish exterior kitchen in near future.

What do they (lender) want you to do?

• Should I ask lender, how do they want to proceed after explaining them the situation (No Garage Doors, Incomplete ....)

How do you "refinance" a "brand-new" property? Converting from construction loan to permanent financing?

• I did not ask this question, but 'Cash' is a possibility and stretching imagination further, borrower may have run out of 'Cash' now ....

It does not matter that it is a refinance

• I was thinking on the lines that in case borrower purchases the property from the builder (mostly this is the scenario in case of 'New Property'), then builder is supposed to complete the property and 'Hypothetical Condition - Subject to Completion' is the way to go; but situation here is different as there is no compulsion for completion, as borrower is the builder and owner.

 

[Mark K]

If garage doors are prevalent and typical, basically everybody else wants and has them, I'd make a functional obsolescence adjustment that would probably be about 1.5 or 2X the cost to install overhead doors, trim, openers, paint, etc. In this area, that would be about a $5-$6,000 adjustment. I would not call it a carport.

A discussion with the client should give you direction on how to address the incomplete items, i.e., as-is, as-IF complete, or subject to. What the owner wants is irrelevant, he's not your client.

 

[J Grant]

Always a good idea to check in with the client...it could be done as is, or subject to

 

[glenn walker]

I don't see any issue.. Those are garages without doors -Cost of overhead doors $3,000 +/- The outside kitchen and landscaping are not an issue. Personally I would go C-1 it's brand new and just make a garage door adjustment against comps with garage doors and then be done "as is" AND THAT IS NOT A CAR-PORT It's a built in garage and the quality of construction is much superior "v" a carport !

 

[Mr Rex]

Is that exposed unpainted wood?

 

[David S. Roberson]

If garage doors are prevalent and typical, basically everybody else wants and has them, I'd make a functional obsolescence adjustment that would probably be about 1.5 or 2X the cost to install overhead doors, trim, openers, paint, etc. In this area, that would be about a $5-$6,000 adjustment. I would not call it a carport.

A discussion with the client should give you direction on how to address the incomplete items, i.e., as-is, as-IF complete, or subject to. What the owner wants is irrelevant, he's not your client.

I concur!