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Raw Sewage and Dark Fuzzy Substance?

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JoeGermade

Junior Member
Joined
Oct 4, 2004
Professional Status
Certified Residential Appraiser
State
New York
Hello All,

I am doing an appraisal for an AMC = ( This appraisal is for the purpose of a short sale. Lender wants to know how low to let the home go for.

I have notified the AMC of some major problems and all they care about is when they will get the report. "Put all defered maintance in a cost to cure" the nice women says.

Issue# 1) This home has 3' - 4' tall crawl space under the basment. No lights in this crawl space and filled like a dump, I couldnt even make out what the garbage was down there. I was ready to vomit at the smell of raw sewage. I could not see where it was coming from but the ground was wet.

Issue# 2) The owner is living in the basement level (This is a 2 family home). The baseboard heating has a problem and lets out steam whenever the heat is on. This caused the walls in the basement to grow fuzzy dark colored spots.

Issue# 3) The second floor has very soft wavey floors. If you dropped a marble you would be chasing it for like 20 minutes. The kitchen had, according to the owner 1 year old ceramic tiles that were cracked and shifted when you walked because the floors were so uneven.

How would some of you out there handle something like this? The home is in over all fair condition with these major issues. Some other work needs to be done that I will put in an itemized cost to cure.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
It would seem that the sewage had been leaking for some time. Moisture has leeched into the framing and floor joists. Call for cert 24 (?) and make a list of what you have told us. Cost to cure will not be known until it is inspected by a home inspector and bids are obtained. Sounds to me like a major, major remodel and maybe even a bulldozer.
 

JoeGermade

Junior Member
Joined
Oct 4, 2004
Professional Status
Certified Residential Appraiser
State
New York
The crawl space has a dirt floor and concrete walls. The owner says that it seeps into the ground and never floods out. The framing and floor joists above looked dry. The mold was caused from the build up of steam from the baseboard. The owner put his couch in front of one of the baseboards and even that had mold.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Make a list of everything you observed and estimate the cost of repairs necessary to bring the improvements into "average" marketable condition. Make it clear that you are not technically trained as a contractor or building inspector and that there may be further problems, damages or adverse conditions found when unobservable areas are removed or opened for further inspections and repairs. You will need to rely on an extraordinary assumption. The "as is" value is probably what a "fix and flip" type buyer would pay.

Just do the best you can. This isn't for Fannie lending. It's a property disposition assignment.
 

Lycabull

Junior Member
Joined
May 31, 2003
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
West Virginia
Joe:

Welcome to AMC work. Hope you are making more than the typical $195 fee on this one. Best of luck to you.
 

JoeGermade

Junior Member
Joined
Oct 4, 2004
Professional Status
Certified Residential Appraiser
State
New York
Well it is a multi and my 3rd trip back to the property because of hostile tenants so the fee has gotten closer to a full one.

I was thinking CB4, I have done it for the mold after reading many posts on the forums about how much liabilty is involved. The AMC hated that I did that and the check still hasnt come! As far as the sewage I know there is a problem but I dont know the source, how bad, or what caused it.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
CB4 is just a checkbox indicating that because you have used an EA you are requiring the client to get an inspection to verify whether or not the assumption is true. It's still an "as is" value as long as your assumption is true. A client wanting to use an appraisal to make a conforming loan needs to go through this process. A client not making a conforming loan can do whatever they want. In that case you can just check the "as is" box as long as you have disclosed the EA.
 

Lycabull

Junior Member
Joined
May 31, 2003
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
West Virginia
Observe and report on what you know. Condition anything you are not sure of on an inspection by someone who is, and who is qualified to make that determination. We are not in business to make AMCs and account executives happy.

As for the sewage, it sounds like a plumbers field of expertise to me. Greg and Mike are both seasoned appraisers and have given you good sound advice.
 
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