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No Utilities Connected

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App601

Junior Member
Joined
Sep 7, 2014
Professional Status
Certified General Appraiser
State
Puerto Rico
When I appraise a property that does not have utilities connected I use "subject to the hypothetical condition that the repairs or alterations have been completed" I write below "subject to the installation and certification of water and electricity"

So far no under has complained

I appraised a property for another bank and the under did not accept it unless I changed the mark to

"subject to the extraordinary assumption that the deficiency does not require alteration or repair
Well it does It has no utilities

If Hypothetical condition is a known fact and extraordinary assumption is something uncertain
What reasoning may be behind his thinking?

This is a non-conforming case

Am I correct or is he correct?
 

Howard Klahr

Senior Member
Joined
Oct 4, 2004
Professional Status
Certified General Appraiser
State
Florida
You have your definitions backwards
 

App601

Junior Member
Joined
Sep 7, 2014
Professional Status
Certified General Appraiser
State
Puerto Rico
You have your definitions backwards
No I don't here are the definitions

The distinction between the two lies in the potential veracity of the assumption. A hypothetical condition assumes a condition which is known to be contrary to fact whereas an extraordinary assumption assumes a condition or a fact which is merely unknown or uncertain. T
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
If Hypothetical condition is a known fact and extraordinary assumption is something uncertain
What reasoning may be behind his thinking?

An HC would be that you are conditioning based on the hypothetical that the electric was on. That's the fact you are disavowing.

The EA is the assumption that something will or will not need to be repaired or replaced once the electric is on.

It is the EA that needs to be stated in the report.
 

App601

Junior Member
Joined
Sep 7, 2014
Professional Status
Certified General Appraiser
State
Puerto Rico
An HC would be that you are conditioning based on the hypothetical that the electric was on. That's the fact you are disavowing.

The EA is the assumption that something will or will not need to be repaired or replaced once the electric is on.

It is the EA that needs to be stated in the report.


Ok Thanks My interpretation was that it is known that it does not have water nor electricity and that the hypothetical condition was that it was assumed that it was installed

However yours statement The EA is the assumption that something will or will not need to be repaired or replaced once the electric is on.

make sense Thanks

Note to the admin; You may close forum; question was answered
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Ah, yes you do

Maybe I'm reading too fast.

The utilities are not connected (he knows this) and he's saying the utilities must be connected and made a repair condition under the HC that they were connected on the date of value even thought they weren't.

An EA (on a Fannieform) doesn't make sense in this case because it is predicated on the assumption that no changes are necessary when in fact he's saying changes ARE necessary,

What am I missing?
 

App601

Junior Member
Joined
Sep 7, 2014
Professional Status
Certified General Appraiser
State
Puerto Rico
Maybe I'm reading too fast.

The utilities are not connected (he knows this) and he's saying the utilities must be connected and made a repair condition under the HC that they were connected on the date of value even thought they weren't.

An EA (on a Fannieform) doesn't make sense in this case because it is predicated on the assumption that no changes are necessary when in fact he's saying changes ARE necessary,

What am I missing?
That was the way I was interpreting the issue

But it appears that the reasoning is that once insatalled they will not need repair
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Are the utilities (power and water I'm assuming) physically disconnected from the improvements are just not powered up?
 

App601

Junior Member
Joined
Sep 7, 2014
Professional Status
Certified General Appraiser
State
Puerto Rico
Are the utilities (power and water I'm assuming) physically disconnected from the improvements are just not powered up?
It is an REO abandoned property and they are not connected
 
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