Request to Remove Addition from Appraisal

[Corbyn Reece]

Am I handling this right?

I did an appraisal and included an added room built/completed in a workmanlike manner - permitted addition per homeowner. Including added GLA completed in a workmanlike manner is typical for my area. The underwriter asked that I remove the added room since permits could not be verified, include a cost-to-cure and deduct any value for that room. I responded that I can do that, but I would have to check the "hypothetical" box because that is essentially asking that I ignore the added room, which adds value permitted or not.

Am I handling this correctly? Thanks.

 

[Riick]

?? Does the U/W have a copy of the permit to build the main house ??
If not, shouldn't you remove THAT from the appraisal?

You cannot ignore what you see and what shows up in your pictures...
or did she want you to crop the addition out of your photos too?

Yes, you are on the right track; U/W, however, is on the road to insanity.

/

 

[Randolph Kinney]

Am I handling this right?

I did an appraisal and included an added room built/completed in a workmanlike manner - permitted addition per homeowner. Including added GLA completed in a workmanlike manner is typical for my area. The underwriter asked that I remove the added room since permits could not be verified, include a cost-to-cure and deduct any value for that room. I responded that I can do that, but I would have to check the "hypothetical" box because that is essentially asking that I ignore the added room, which adds value permitted or not.

Am I handling this correctly? Thanks.

Other than the owner telling you that the addition was done with permit, did you attempt to verify with the local building department? Does the the total measured GLA agree with assessor records / building department records?

Providing certificates of occupancy and permits is beyond the scope of work in a normal assignment. If that is required, that is up to the home owner.

 

[jwd appraisals]

Did you try to verify permits?

 

[Terrel L. Shields]

Did you try to verify permits?

If you can't verify the permits, will the addition disappear?

Hypotheticals apply when it is contrary to what exists....and the addition exists permit police or not. And if the HO tells me that they replaced the AC compressor 2 years ago, I cannot "verify" that nor about 90% of whatever else the HO tells me.

Fire the client.

 

[Corbyn Reece]

Thanks for the help experienced appraisers.

No, I did not verify permits. The GLA is about 180 sq ft larger than the 1480 showing on public records. I am from the school of thought that verifying permits is not only time consuming but can often lead to more liability by relying on one that may be different than the actual structure or may be a permit taken out but not fully signed off etc. And yes, it should be provided by the homeowner or agent. I state right on my appraisals that locating permits is not my responsibility (yes, occasionally I do anyway).

I took Riick's advice and asked the lender what was added since I'm no Inspector Cleaseau and wasn't there years ago at the time of construction. Even though, based on experience, I can pretty much tell which room was added (by the design of the house, not the quality - it's built well and I'm surprised it's not permitted).

I agree . . . trying to undo what has been done just mucks up the works. If the lender wants me to go on the premise that 150 sq ft of the structure is not permitted and what would that effect on value be, I can understand. But don't ask for hypotheticals or it can get us all in trouble.

 

[Lee Lansford]

Am I handling this right?

I did an appraisal and included an added room built/completed in a workmanlike manner - permitted addition per homeowner. Including added GLA completed in a workmanlike manner is typical for my area. The underwriter asked that I remove the added room since permits could not be verified, include a cost-to-cure and deduct any value for that room. I responded that I can do that, but I would have to check the "hypothetical" box because that is essentially asking that I ignore the added room, which adds value permitted or not.

Am I handling this correctly? Thanks.

Based upon what you have shared, I agree with you.

 

[Brian Weaver]

If the U/W is so worried about it...maybe they should seek a "rebuild" letter from the local zoning authority. That's not your job. At least...not for free.

 

[ddnma]

If the U/W is so worried about it...maybe they should seek a "rebuild" letter from the local zoning authority. That's not your job. At least...not for free.

Oh really... can the next appraiser that gets turned into you for not verifying things just use the excuse "it's not my job."

The scope of work is acceptable when it meets or exceeds:
* the expectations of parties who are regularly intended users for similar assignments; and
* what an appraiser’s peers’ actions would be in performing the same or a similar
assignment.

If other appraisers (peers) are verifying permits in the OC, or SoCal, I believe they should verify permits. I do believe that most appraisers do their best to verify permits in SoCal....

As for ignoring the contributory value/or decline in value because of the addition... I would tell the U/W... no can do...for I would not want my appraisal report to be misleading....

 

[Randolph Kinney]

Thanks for the help experienced appraisers.

No, I did not verify permits. The GLA is about 180 sq ft larger than the 1480 showing on public records. I am from the school of thought that verifying permits is not only time consuming but can often lead to more liability by relying on one that may be different than the actual structure or may be a permit taken out but not fully signed off etc. And yes, it should be provided by the homeowner or agent. I state right on my appraisals that locating permits is not my responsibility (yes, occasionally I do anyway).

I took Riick's advice and asked the lender what was added since I'm no Inspector Cleaseau and wasn't there years ago at the time of construction. Even though, based on experience, I can pretty much tell which room was added (by the design of the house, not the quality - it's built well and I'm surprised it's not permitted).

I agree . . . trying to undo what has been done just mucks up the works. If the lender wants me to go on the premise that 150 sq ft of the structure is not permitted and what would that effect on value be, I can understand. But don't ask for hypotheticals or it can get us all in trouble.

You have to explain the difference in your measured GLA versus that which is public record. If it is an addition not reflected in the public record, you are within your SOW to say that the owner said he had permits for the addition. If the UW wants to see them, then tell the UW to contact the owner.