No Central HVAC - Fannie Mae Policy

[Terrel L. Shields]

, realize it is a combination of factors and the final test is, did it impact price?

I am asking if you treat it as the difference in cost or as functional obsolescence that might involve making an adjustment that involves more than the simple cost to cure. And how do you extract that difference when the difference is less than say 1 or 2% of the price of the property? Or, are you one of those appraisers still making $100 adjustments?

 

[J Grant]

I am asking if you treat it as the difference in cost or as functional obsolescence that might involve making an adjustment that involves more than the simple cost to cure. And how do you extract that difference when the difference is less than say 1 or 2% of the price of the property? Or, are you one of those appraisers still making $100 adjustments?

You are asking me to teach you how to appraise? I need to charge at this point - and no, I do not make $100 adjustments -

If a difference is minor 1% or such I might not adjust but might factor it in to the reconciliation. Please send me $500 for that tip!

 

[Terrel L. Shields]

You are asking me to teach you how to appraise?

No. I am asking if you even know how to appraise and if you ignore and do not mention functional obsolescence.

 

[Zoe]

I think it stays about 70 degrees in some areas of CA all the time. Their utility bills are probably really low in some areas. House is not cheap, but......................

 

[Zoe]

Govt agencies and charitable organizations give out fans and window a/c in Memphis sometimes due to dangerous heat mixed with humidity for many people. Heat is necessary too because of frozen pipes and health and safety. If you don't like the weather in Memphis, just wait a day or two or a few hours. LOL

I asked people in Chicago why they walk so fast downtown. A guy said if you lived here in the winter, you would know why they walk so fast. LOL

Water pipes and things relative have to be buried deeper up north and than down south.

 

[Terrel L. Shields]

I think it stays about 70 degrees in some areas of CA all the time.

West Texas and the deep SW are better served with "swamp coolers" - water coolers work exceedingly well in dry climates. I rarely saw a CHA system in W. Texas or Carlsbad when I lived there. In the mountains? Maybe an attic fan, not much else. Rarely over 85 and low humidity is the norm.

 

[J Grant]

No. I am asking if you even know how to appraise and if you ignore and do not mention functional obsolescence.

It is up to the appraiser to understand the market, determine whether it is functional obs, cost to install, or a combination, and analyze the impact on price and marketability.

 

[Terrel L. Shields]

whether it is functional obs, cost to install, or a combination

and do you articulate that to the client? I mean do you identify your functional issues or must make an adjustment without much comment - in the SA, CA, or even in the reconciliation?

 

[sputnam]

Citation, please?

You have exactly the same access to information that I do. If you want to spend your time looking it up and it turns out that my memory was incorrect... so be it. I have better things to do with my time.

 

[J Grant]

and do you articulate that to the client? I mean do you identify your functional issues or must make an adjustment without much comment - in the SA, CA, or even in the reconciliation?

I like to comment on the adjustmetns when warranted .

I might comment ; "The subject is adjusted $10,000 for a line item of not having central AC, since comps with central AC exhibit an average price premium of $10,000 for superior utility."