Permit Nay-sayers

[The Warrior Monk]

So...did you make an adjustment for it?

I don't appraise properties that my principal broker is involved in.

If I appraised it, I wouldn't have simply adjusted for it. The appraisal would have required an HBU analysis, and the result of the analysis would determine the valuation methodology.

 

[CCAAMO]

if you appraise a property and there is a house of worship on the property, do you ignore it since your not a theologian?

 

[Joyce Potts]

If it's an FHA, you better not only check the location of the septic tank, but the location of the well and the distance between them, the primary improvements, and the property line.

And, if, when walking the drainfield, you discover standing water with an oily sheen and a distinct odor, you better report that also.

There you have something very obvious that gives rise to further inspections by other professionals, with the appraiser obligated to report what he saw, not make an immediate call on what's exactly wrong.

Do you always get surveys to see where the drainfield and septic systems are in relation to the proprety line? Ever had a permited drainfield that didn't meet FHA requirements?

But there you go again, Mr. Brown. First of all who said it was FHA?

Second of all, given the permit seekers, why aren't all septic and drainfield systems verified even if they aren't FHA? Couldn't that have an impact on value, or is the appraiser not a home inspector and has every right to assume the plumbing, electrical and mechanical components are in working order? What about the roof? Does everyone also check for roof permits?
A roof without a permit may impact the value, wouldn't it?

The appraiser is generally not a home inspector or a GC, or whatever. The appraiser has every right to caveat his report within the defined SOW as to any and all extraordinary assumptions the report was based upon.

 

[Ken B]

The appraiser is generally not a home inspector or a GC, or whatever. The appraiser has every right to caveat his report within the defined SOW as to any and all extraordinary assumptions the report was based upon.

I'll agree with that. Very much agree with that, actually.

With the caveat that the extraordinary assumption must be reasonable. It I walk across a saturated drainfield which has an odor problem, it would not be reasonable to make an extraordinary assumption that the septic system is in working order.

Not all assumptions rise to the level of being extraordinary, although I recently completed a CE course on HCs and EAs which could lead an overly cautious appraiser to EA practically everything in the report. I think it is reasonable for some assumptions to be just that. For example, it is reasonable to assume that a newer property which is occupied received an OP. (or CO, or whatever they may be called in one's jurisdiction)

If I walk through a basement which has been finished in a quality similar to the upper level and there are no obvious signs of code violations, it is reasonable to make an extraordinary assumption that it was finished to code. Maybe it would be appropriate to just make that assumption.

If I walk through a basement which is clearly finished in less than a workmanlike manner and having clear code violations, it would not be reasonable to make an extraordinary assumption that a building permit was issued and necessary code inspections were performed.

It would be misleading to utilize an extraordinary assumption given those circumstances.

As usual, there are no absolutes. Just a bunch of "maybes and it depends."

 

[CURT VAN HOOSER]

ZZ, I believe you have gotten a lot of play out of your post, and still no common ground amongst your peers. Not that there isn't common ground, just that some people do not want to give an inch in agreement. (I understand this phenomenom because I am a Dutchman and as such, am quite hard headed. The premise being...until you conceed to my point...I cannot conceed to yours.)

 

[CCAAMO]

Z (I understand this phenomenom because I am a Dutchman and as such, am quite hard headed. The premise being...until you conceed to my point...I cannot conceed to yours.)

I thought the Norwegians went to the front of that line!