• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Open walls - Exposed Insulation

newyork12345

Thread Starter
Freshman Member
Joined
Nov 24, 2014
Professional Status
Certified Residential Appraiser
State
New York
I inspected a home that was in the process of renovation. The majority of the home was done, but the downstairs hallway and part of the upstairs lacked sheetrock. The walls were open with paperbacked insulation between the studs. The homeowners live in the house full-time, and the kitchen, baths, living areas and bedrooms are all finished. I know the open walls are considered a safety issue, but as the rest of the house is in good condition does it still warrant a C6 condition rating? Or does the condition of the finished areas count for something and can i give it a C5 rating? I'm having a hard time deciding. Thanks for any insight you can provide.
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
Why would you consider the entire house's condition C6 (that's a tear down!) ???
And why would you think the entire house's condition C5??? (just a step above a tear down, but still "livable")

Sounds like, from your comments, overall is in good condition with some deferred maintenance (hallway) .... C4?
 

Tom4value

Member
Joined
Dec 4, 2016
Professional Status
Certified Residential Appraiser
State
Massachusetts
Not being a wise guy here but why are you asking us? Since you are using UAD terms, I know this appraisal is for financing. Consult your client. Unless it is a rehab loan, they can’t do the loan “as-is”. They will either have you do it “subject to” or the loan (and appraisal) is cancelled. Either way, C5 or C6 will not factor into the equation.
 

andrew81

Senior Member
Gold Supporting Member
Joined
Dec 5, 2008
Professional Status
Certified Residential Appraiser
State
Illinois
if it is your opinion that any portion of the property negatively affects the safety, soundness, or structural integrity of the improvements, then it must be rated C6, and completed subject-to repair

If a property’s overall rating could be C2, C3, C4, or C5 for Condition, but there is one item alone
that could be rated a C6, how should the property be rated?
The condition of the property should be determined holistically and the best definition should be
applied as the overall rating. However, the C6 rating is an exception because it indicates that
the property suffers from trait(s) that negatively affect the safety, soundness, or structural
integrity of the improvements. As a result, if any portion of the dwelling is rated a C6, the whole
dwelling must be rated a C6.
 

Lee in L.A.

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Sounds like C3 or C4 to me, with some minor? drywall work and paint to finish.
I don't see it as a safety hazard. See what the client wants. Subject to, or cost to cure and as is.
 

BRCJR

Senior Member
Gold Supporting Member
Joined
Sep 20, 2005
Professional Status
Licensed Appraiser
State
Virginia
Not being a wise guy here but why are you asking us? Since you are using UAD terms, I know this appraisal is for financing. Consult your client. Unless it is a rehab loan, they can’t do the loan “as-is”. They will either have you do it “subject to” or the loan (and appraisal) is cancelled. Either way, C5 or C6 will not factor into the equation.
Where did you find a directive indicating this cannot be done "as is"?
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I inspected a home that was in the process of renovation. The majority of the home was done, but the downstairs hallway and part of the upstairs lacked sheetrock. The walls were open with paperbacked insulation between the studs. The homeowners live in the house full-time, and the kitchen, baths, living areas and bedrooms are all finished. I know the open walls are considered a safety issue, but as the rest of the house is in good condition does it still warrant a C6 condition rating? Or does the condition of the finished areas count for something and can i give it a C5 rating? I'm having a hard time deciding. Thanks for any insight you can provide.
Imo it is not a safety issue, it is a semi finished area What safety hazard does it present, short of holding a match to it... I would ask client though - do they want it as is or subject to finish -report can be made as is with a cost to cure and any impact on value, or make subject to install the Sheetrock.
 

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
I inspected a home that was in the process of renovation. The majority of the home was done, but the downstairs hallway and part of the upstairs lacked sheetrock. The walls were open with paperbacked insulation between the studs. The homeowners live in the house full-time, and the kitchen, baths, living areas and bedrooms are all finished. I know the open walls are considered a safety issue, but as the rest of the house is in good condition does it still warrant a C6 condition rating? Or does the condition of the finished areas count for something and can i give it a C5 rating? I'm having a hard time deciding. Thanks for any insight you can provide.
Just a thought or two;
Are you overthinking the problem ?
How much sheetrock would be required to Finish those area's ?
Are they hiring out the work or doing it themselves ?
Do you have a Cost Estimate to Finish the work ?

Agree with most, why would a C6 rating be applicable ?
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
What loan program? In house bank? FNMA (Fannie Mae)? FHA? VA? Each loan program has rules. An in house lender needs an as is value if above de minimus. Secondary market wants subject to values usually. Insulation is not a hazard. Condition sounds more like C3.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
I inspected a home that was in the process of renovation. The majority of the home was done, but the downstairs hallway and part of the upstairs lacked sheetrock. The walls were open with paperbacked insulation between the studs. The homeowners live in the house full-time, and the kitchen, baths, living areas and bedrooms are all finished. I know the open walls are considered a safety issue, but as the rest of the house is in good condition does it still warrant a C6 condition rating? Or does the condition of the finished areas count for something and can i give it a C5 rating? I'm having a hard time deciding. Thanks for any insight you can provide.
A C-6 is a tear down- A C-5 is really bad - A house like you described is a C-4 "Subject too " The drywall being installed.
 
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks