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Question on the 1004 form

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Verne Hebert

Thread Starter
Senior Member
Feb 25, 2002
Professional Status
Certified General Appraiser
Near the bottom of page 1 is the clause, " are there any physical deficiencies or adverse conditions that affect the livability, soundness or structural integrity of the property". This area of the form requires the checking of the yes no box. This obviously was put into the most recent form as a simple FNMA guideline check meeting the old "safe, sound and sanitary rule that we used for years.

Here is the situation. I am working on a new construction. The appraisal assignment is "as-is". There is a fair amount of uncompleted work on the interior. On the exterior siding and soffits on the dwelling are complete, however a large covered roof area over the deck is neither soffited or painted; hence bare wood. NO COE are required in this area.

The owner/builder/borrower live in the home with the family. they have functioning and finished kitchen, 2 finished and functional bathrooms.

Is this a yes or a no? I am thinking a yes is a no loan as a result of the checked box regardless of the language in the report. So it is a significant issue.

I am discussing the unfinished items in the body of the report. I am applying an across the board adjustment in the market approach for curable physical depreciation and in the cost approach. (The market adjustment is $ 30K--60 man/days plus material)

Weigh in and share what do think on this?

Thanks in advance for the input.

Chris White

Sophomore Member
Nov 16, 2004
Professional Status
Certified Residential Appraiser
South Carolina
That box means to me ...is it livable etc....no major structural problems, mechanical problems etc....I would say no and then explain the unfinsihed portions
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