REO appraisal of gutted home.

[Calvin the Airedale]

Highest and Best Use

Three words: Amish hunting cabin!

 

[BNICK]

The "as is " may be the cost of the land,, you would need to be competent in construction or have a contractor give you estimates in "as repaired " for this one, but the cost to repair may be more than the market will pay for. I have never had an REO that requested cost to cure ,it is "as is" and "as repaired" with or with out market time stipulations.

 

[JENIFFERW]

You could try this website for repair costs;

http://www.costestimator.com:8080/contractor-consumer/

I haven't tried it yet. Someone else posted it on another thread.

 

[vanguard]

Quote "REO appraisals generally need to establish at least two values, as-repaired and as-is. The as-repaired is based on the sales comparison approach and the as-is value would be the as-repaired minus the cost to cure minus the incentive needed by an investor to risk this investment."

Response :Any estimates for investor incentive would be a third opinion. The REO addendum is asking for "as is" and "as repaired" only. I have never had a client ask for investor incentive on a report.

 

[VegasWayne]

[/quote]Response :Any estimates for investor incentive would be a third opinion. The REO addendum is asking for "as is" and "as repaired" only. I have never had a client ask for investor incentive on a report.[/quote]

Every appraisal I have done asks for an opinion of market value. Read the definition of market value and you will see that it is not the as-repaired value minus the cost to cure. In the case of the original post the cost to cure will be high. No buyer will purchase this property and invest the cost to cure with no hope of seeing any profit when the property is resold, especially in a declining market.