• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Request for as is and as repaired values.

Lee in L.A.

Thread Starter
Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Got a request showing a free of $337 and due date Monday, but they want my turn time and fee quote
It's on a lot < 4,000 F and the old house is 2+1 with under 800 SF. In a hillside expensive area.
MLS says it is vacant and the last occupant had 100's of birds inside. This is for a purchase and rehab loan.

The scope of work for the house says they do not plan to enlarge it. Just spend about $200k remodeling.
That is kind of strange by itself, why not make it bigger? It is at the small end for it's hood.
The other thing that gets me is the scope of work for the remodel. I could not even tell you what quality level this is supposed to be.
I declined to bid for those reasons, plus it is an AMC I have never worked for. Also their order says failure to deliver by due date will result in you being liable for any costs incurred by AMC. I should have looked at that first. Stupidest deal killer ever. :leeann:

1579998794032.png
1579998829143.png
1579998863882.png
1579998894016.png
1579998918147.png
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
as is land value
as proposed whatever
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
Not unusual in Los Angeles Hill Communities where these small bungalow often sell for upwards of a million dollars. The lot could be worth $800K and the 800 Sq.Ft. House at $200K or more. The cost estimates appear to be for real based on a Q2 type materials. The price-New Per Sq.Ft. for new construction or remodels can easily be $250.00 Sq.Ft.or more in the Hollywood Hills, Silver lake, Pasadena or other upper end hillside communities. The problem is essentially this is like an-Enhanced conventional 203K type program, and the appraiser ends up having to complete two appraisals. Where this gets difficult is when the house is substantially smaller or larger than whats typical in the neighborhood or community and finding comps can be tough. It's crazy but in some of those hillside communities an-old original house often brings in almost the same money as one fixed up, since 80% of the value is in the land.

Can it be done -YES- but at a fee of more like $1,500.00 and minimum turn time of 15 days- O' and what about the reinspections they will ask for once the work is done ?
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
It's a major remodel and you'll be able to use the before/after sale prices of other major remodels as an indication of the spread between the two. Best to base the before and after on 2 different sets of comps to the extent you can find them, but it's not unusual to run into situations where there aren't enough of either.

I'd figure on an extra day to do this assignment, plan on doing a good cost approach to support the "subject to", and plan on commenting why the costs for the remodel are higher than those features would cost in an all-new construction (repair/remodel costs are higher than new construction costs). Maybe use a different cost database (that's what I do) for repairs than new construction.

It doesn't take $200k to do a major remodel on an existing 800sf house of (probably) Q4 quality. The borrower is hiding their income for the next 6 months that it will take to fix/flip the house in that loan. $40k to do windows and siding on 700sf of exterior wall area is obscene, and it doesn't cost $20k to re-roof a house of that size.

OTOH there will probably be a big profit margin involved, sometimes in excess of $100k over costs; because the market in this region does pay a lot more for that type of remodel.
 
Last edited:

KONA

Junior Member
Joined
Aug 16, 2007
Professional Status
Certified General Appraiser
State
California
You need more than a cost breakdown. You will need a full description of quality features, specifics on the appliances, trim, finishes, and much more. As said earlier, land value.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
I hate idiot, disrepectful AMC assignments like this and turn them down most of the time. Just the idea of an initial fee offer of $337 is offensive and tells me they have no business being an appraisal manager.
 

Lee in L.A.

Thread Starter
Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
You need more than a cost breakdown. You will need a full description of quality features, specifics on the appliances, trim, finishes, and much more. As said earlier, land value.
They have none of that. Biggest reason I rejected it.
 

KONA

Junior Member
Joined
Aug 16, 2007
Professional Status
Certified General Appraiser
State
California
I would pass on that assignment in a nano second. It would cause you nothing but pain.
 

Lee in L.A.

Thread Starter
Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
I would pass on that assignment in a nano second. It would cause you nothing but pain.
You are quicker than me. Even apart from time to look it up, I needed more time to think about it.
But I came to the same conclusion.

The nano second reject was a stand alone rent schedule for the great sum of $65.
Just some place on Stradella Rd in Bel Aire. I suspect they want me to die laughing. :rof:
 

KONA

Junior Member
Joined
Aug 16, 2007
Professional Status
Certified General Appraiser
State
California
High end neighborhood and they want to pay you pennies. The Gall.
 
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks