Property being sold "AS IS" condition

[Webbed Feet]

<.... snip.....>I didn't realize real estate could sell or be purchased at any point in time in any condition other than its "as is" condition. If the client is a "lender," the transaction is likely covered by a regulation to appraise the property "...in its actual phyisical condition." (What a coincidence).

Mr. Santora,

You keep coming back to this one all the time, many of us know the source you are speaking of. Perhaps our entire industry should inform all lenders we can no longer provide them any "drive-by" reports, or any Fannie form reports at all for that matter, as they are full of assumptions required by necessities in order to complete them. Even the age old standard assumption the real estate is not polluted, unless known to be otherwise, can later be found to be untrue. Interestingly, I have never taken my tools and tore a house apart during an inspection, or taken soil samples while I was there. You don't suppose I used any assumptions do you?

Find me a USPAP compliant appraisal that is 100% without any assumptions at all. Even the implied assumption that a third party inspector is not a con artist that doesn't even have an engneers degree. There is no such thing as a truly "as-is" appraisal report of any real estate in it's "actual physical condition" in our industry. If there is I'll show you an idiot that signed that report. The standards of our industry is we all use assumptions and all "base" our opinions on a lack of hidden conditions or on reliance upon third party reports that may in fact turn out to be unreliable. Whoever it was that wrote those words, "actual physical condition," was kidding themselves and others when they wrote them if the context of their use is how you insist on presenting it to be.

Webbed.

 

[Marcia Langley]

MZ818,

Steven is speaking of the general case and you are speaking of the case where the client requires adherence to Fannie Mae, et al.

GSE guidelines are a client requirement. If you have an assignment that is not under that requirement, say where the buyer of a property is not getting a loan but want's to know the "as is" value then an HC would not apply. An EA could still apply because the value you opine with that condition is still an "as is" value.

But you would not be referencing CB3 or CB4 because you would not be using that form.

=

Steven,

You really should take some pity on posters and help them with their confusion.:icon_mrgreen:

 

[Marcia Langley]

See I told you there was no concencus.

There can't be consensus when the parties to the discussion are talking about two different scenarios.

If you need consensus you need to pick up on the words that change the discussion from one scenario to another.

 

[Webbed Feet]

Ms. Langley,

I love your posts and mirror your statement. "as-is" and the checkboxes in form(s) reconcilation section(s) may not uniformly mean the same thing in all appraisal circumstances. "as-is" is a concept in our industry, not an absolute nor a promise. "Actual physical condition" is equally a concept, not an absolute nor a promise. All it can mean ultimately is don't lie about the property literally, or via ommission, after having made a visual inspection of it and knowing damn well it to be otherwise than reported by your work. Or not reported by your work when it should have been, as the case may be.

Webbed.

 

[MZ818]

say where the buyer of a property is not getting a loan but want's to know the "as is" value then an HC would not apply.

But wasn't the original post indicating that it was a purchase transaction of an REO, then wouldn't it be for a loan?

 

[Ken B]

That is an assumption and perhaps not even a reasonable one. I think someone commented that some purchasers will have a property appraised prior to entering into a contract as part of their due diligence process. I am presentling performing an appraisal on a commercial shell for just that purpose.

 

[Marcia Langley]

But wasn't the original post indicating that it was a purchase transaction of an REO, then wouldn't it be for a loan?

Technically the OP did not say who/what his client, intended user, or intended use was. That left the door open for each poster to make their own assumptions. Thus the confusion.

A thread like this one must be read and understood just as if you were starting a new scope of work from scratch. Define the client, user, uses, extra client requirements, etc, before jumping in.

Some posters will immediately assume lender clients, Fannie forms, and fannie regs. Others will try to just talk about USPAP.

In a thread like this one, you'll need to define your scenario before you opine. Like I did in my first post in this thread.

 

[Webbed Feet]

Technically the OP did not say who/what his client, intended user, or intended use was. That left the door open for each poster to make their own assumptions. Thus the confusion.

A thread like this one must be read and understood just as if you were starting a new scope of work from scratch. Define the client, user, uses, extra client requirements, etc, before jumping in.

Some posters will immediately assume lender clients, Fannie forms, and fannie regs. Others will try to just talk about USPAP.

In a thread like this one, you'll need to define your scenario before you opine. Like I did in my first post in this thread.

Ms. Langely,

We sure need a Standard Two for forum original posters ...don't we? .. So many of them leave out specific information needed to respond adequately it is almost a 100% failure rate.

Webbed.

 

[Marcia Langley]

"as-is" and the checkboxes in form(s) reconcilation section(s) may not uniformly mean the same thing in all appraisal circumstances.

That is a very important point.

In an MLS listing or in a purchase agreement "as is" means that the seller will not spend any money or do any work to the property before closing.

That is a completely different thing from the "as is" versus "subject to" opinion of value. In this case, it's the opinion of value that is "subject to change" if the "subject to hypothetical conditions" are not met or if the "subject to extraordinary assumptions" turn out to not be true.