Non Functional Garage

[Dave Curry]

Whether your lender wants it or not the 12th edition I beleive says that if value exceeds cost then do a cost to cure. In other words if the cost to cure is $5,000 and the garage in that market (based on extractions) is $10,000 then you need to include it with a cost to repair. That cost to cure would need to consider any reaction from the buyers due to not being a turn key property in addition to the actual cost to property get permits and repair.

If its in bad disrepair, and garages are not the normal for the market, then based on the actual cost to bring on a contractor to repair, cost may end up exceeding value.

 

[Webbed Feet]

Time to clarify the Scope of Work

It is a refi for a lender through an AMC.

Kristofer,

Just like Ms. Lee Ann insinuated, and Ms. Rauenzhan said, the first appropriate step is to contact the AMC in order to notify them and have the Scope of Work clarified in light the situation uncovered. A well-informed appraiser, not knowing a client's wishes in such situations, would do this. So I take your original question to be premature given you have left the forum no information regarding if your client has to have that issue repaired in order to meet lending requirements. More than this, we can't answer for you if you have a safety hazard or not. You have to answer that one, unless you can post photos to get opinions.

Given your primary client is an AMC, I pretty much figure your screwed as most AMC's always want appraisers to do things the appraiser should not be doing in such situations. Stuff that normally involves novice appraisers using completely unsupported adjustments claiming they "cured" something.

Webbed.