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Re: Recent hail storm

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Steve Maxwell

Thread Starter
Sophomore Member
Joined
Jan 31, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
A recent hail storm severely damaged the roofs of the majority of homes in the SE part of my town. Now we are beginning to see these repaired homes come up for sale or be re-financed. My current assignment is for a re-finance on a home that will have its roof repaired in March of 2003. The owner and bank wants an "As Is " appraisal. I'm wondering what the consensus of opinion is on how to make adjustments in the appraisal for a hail damaged roof. Many of these roofs have no visable signs of roof damage and take professionals doing inspections. If the appraiser or future buyer were not given any disclosure, as I was here, detection from a ground level exterior inspection of a two story home would be impossible.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
From the home of one of the nation's worst hail storms: the hail storm is public knowledge and most disclosure statement will require the disclosure of any known damages. If there was a hail storm, the seller should know and disclose. If you know there was a hail storm in the area, you should assume that the home needs a new roof until proven otherwise. Hail doesn't hit one home and skip the next. You could check building permits to attempt to determine the area affected as well as obtain the cost of replacement of the roof.

The "as is" is the value of the home less cost of a new roof. There should not be any other loss as this is a relatively easy fix. Unless there was internal water damage, there is no stigma. In my area, the buyers were wanting either a receipt and warranty on the new roof work, or a escrow for the cost of a new roof from the closing. It did not affect marketability.

Hope this helps.
Roger
 

Steve Maxwell

Thread Starter
Sophomore Member
Joined
Jan 31, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Thanks Roger. It sounds like you've had some experience appraising hail damaged property. If my re-financing owner has a signed contract for $ dollars from a reputable roofing contractor, would you recommend using that figure or what I get from Marshall & Swift? IE. does a $13,000 estimate during times of high demand more acurately measure cost or is the standardized cost from Marshall & Swift a better value to use?
 
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