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Roof Disclosure Question

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Queen Bee

Thread Starter
Freshman Member
Joined
Feb 4, 2008
Professional Status
Licensed Appraiser
State
Colorado
I have an order for a puchase with a conventional loan. The home is vacant and when I arrived at the home to do the inspection, a gentleman from a roofing company was there inspecting the roof at the request of the buyer. It was a two story home and from what I could see it did not appear to be in bad shape at all (ofcourse I am not a roofing expert). I asked him what he thought of the condition of the roof and he said that it was not in good shape and needs to be replaced. Since I would not have known that it was not in good shape based on what I could see of it, do I need to mention this in my report because the roofer did indicate that in his opinion it needs to be replaced? Also, should I make a condition adjustment for the roof?
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
You are a reporter. And as such you are supposed to collect all the data you can and report what you find. You happened to be able to interview a roofer who inspected the roof on the day you did your inspection. What could be better than that? Certainly not how it appeared to you. In a worse case scenario, if you omit what was told you might be held liable for an error of omission.

I would state it in the report but also state you are not qualified as a roofer, do not know if the roofing inspection was complete at the time of your interview, and that you are making an extraordinary assumption that the roof has 2 years remaining economic life and that the report is subject to an inspection by a qualified roof inspector.

If the lender allows it, the buyer can just have the roof inspector you interviewed state whether or not it as 2 years of life or not. Or, if they prefer, they can higher another roofer.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Ask the roofer why? Photograph evident physical deterioration he noted/pointed out (curling shingles, shingle fragments on the ground, any visible interior water stains on ceilings, walls)?


You saw what you saw, were told what you were told, and know what you know. Report it; subject to is the way to go.
 

Mike Phillips

Senior Member
Joined
Dec 16, 2004
Professional Status
Certified Residential Appraiser
State
Florida
WOW -

One of my favorite topics, always has been a sore spot, especially with FHA appraisals.

First of all, I collect as much information regarding the roof as I can - it rains in Florida. I inspect it from the ground level, if necessary I get on a ladder. I ask the owner the age of the roof and what documentation they have, if any, to support the claim.

The typical fiberglass shingle roof in Florida last about 14 years, max. This is due to the pitch of many roofs and inadequate ventilation. If I determine the roof is 10 +/- years old I might say "The roof appears to be 10 +/- years old. No signs of active or previous leaks were observed on the interior; none were reported by the property owner. The roof is expected to provide weatherproof coverage for 2-6 years."

I let the lender know. That house falls apart from water damage 2-3-4 years after the appraisal it is not my problem. I will take pictures when active or previous leaks are observed - AND they go in the report. This is defensive appraising.

Regarding adjustments. A roof replacement costs about $5,000 for the typical Forida home. If your subject has a 10 +/- yo roof and the comparable has a new roof, obviously, you should be considering the difference in age in your overall condition adjustments.

FHA has specific guidelines on roof age, or more accurately, the length of time the roof is expected to provide weatherproof coverage. The minimum down-payment buyer has NO funds to replace a roof 1-2 years after they close on the home.

My comments are NOT specific to FHA appraisals. The house with the 10 +/- yo roof typically does NOT need roof replacement. You still need to protect yourself. And granted, some lenders would not want any comments about the 10 yo roof being made. They go in my reports - period. If the roof is 4-5 years old - I'll report that as well. Bet your backside the client knows with I think about the roof's condition. Like I said - it rains in FL.
 
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Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Since you know a licensed professional says it needs a new roof, I would so state in the appraisal and make it subject to either a new roof OR a certification from the roofer that there is at least 3 years remaining service life.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
Since you know a licensed professional says it needs a new roof, I would so state in the appraisal and make it subject to either a new roof OR a certification from the roofer that there is at least 3 years remaining service life.

There ya go. That is the way I would do it, also.
 

Mike Phillips

Senior Member
Joined
Dec 16, 2004
Professional Status
Certified Residential Appraiser
State
Florida
Mike and Mike -

I don't totally disgree with either of you. But the possibtility exists the inspector (in this case) is biased in favor of the buyer. We are advocates of no one - the appraiser is responsible for evaluating the reliability of all data sources, including an inspector. I would acknowledge the judgement of a professional in a particular field - I don't accept their judgement without questioning it.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Mike and Mike -

I don't totally disgree with either of you. But the possibtility exists the inspector (in this case) is biased in favor of the buyer. We are advocates of no one - the appraiser is responsible for evaluating the reliability of all data sources, including an inspector. I would acknowledge the judgement of a professional in a particular field - I don't accept their judgement without questioning it.


The issue isn't whether you question it or not. You were informed by a supposed expert the roof has problems. Failure to disclose that would be mis-leading on your part and therefore a violation of USPAP.
 

Mike Phillips

Senior Member
Joined
Dec 16, 2004
Professional Status
Certified Residential Appraiser
State
Florida
The issue isn't whether you question it or not. You were informed by a supposed expert the roof has problems. Failure to disclose that would be mis-leading on your part and therefore a violation of USPAP.

Agreed - as I said "I would acknowledge the judgement of a professional in a particular field - I don't accept their judgement without questioning it."

Meaning simply, I would report what the expert had to say, however, I would offer my own opinion as to the reliability of the expert's opinion based on my own observations. I don't trust buyer-paid experts, especially the off-the-turnip-truck-here-to-suck-the-public-dry-type.

Fact is, I've walked on enough roofs to know almost as much as a Florida roofing "expert." Enough to know when the "expert" is blowing smoke up my skirt.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Me too! Just had one the other day where I called for a new roof and they got a roof cert letter. Took me off the hook.
 
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