Property condition

[DeKay Bayliffe]

I'm going on my 13th consecutive hour of working today, so please don't throw hand grenades if you think this is a stupid question:

Doing an FHA appraisal on a property with a ton of deferred maitenance and some major flaws. (no septic-uses incinerator toilet, no ceiling in bedroom-open to attic, etc...). Question is, I know the condition of the property as of the effective date is poor, but do I call it average considering the requirements that will be made in the appraisal and the hypothetical condition that after the requirements are completed it will be average?

I have never appraised a home for FHA before that has been so neglected. I spoke to the underwriter and they are aware of everything.:new_puppy_dog_eyes:

 

[Tom Woolford]

Is it really in poor condition, or just unfinished? Sounds like functional problems more than fair condition. A house can have concrete or plywood floors that are in good condition, but do not conform to what the market considers to be standard and / or marketable. Your open ceiling does not make it in fair condition, it makes it unfinished. The incinerating toilets is not a condition issue, it is an acceptability issue. I would talk to the HOC and see how they would reccomend you handle it (as is / subject to).

 

[Marcia Langley]

Tom is right about condition.

The answer is yes to your specific question about how the condition rating is affected by the hypothetically completed repairs.

 

[Mike Boyd]

Tom and Marcia are correct....except, possibly, the toilet issue. I think that type of equipment is supposed to have an official approval by FHA. But, as Tom says, check with your HOC. You might have to provide them with some serial numbers or ICBO numbers......something to identify that type of equipment.