Roof Replacement - Cost to cure

[fractal7221]

I am appraising a single family home which has been vacant for some time and the home needs a new roof (this is according to the listing agent who told me the estimated cost for the new roof is $38,000..apparently he had a roof contractor look at the roof...I was not provided the actual figures in writing). The home also has mold in a few areas, however, no mold remediation was done on the home and it is being sold as is. I have looked for comparable sales of homes that contained mold and needed a new roof and I came up with nodda. I told the vendor I can not appraise the home 'as is' due to the fact that I have no idea how bad the mold is or what the repair estimates are and she informed me I can complete the home 'subject to', however, do I appraise this home 'subject to repairs' or 'subject to inspection'? Also, would it be more appropriate for me to appraise the home an overall low condition (c6) making a cost to cure adjustment for the roof and disclose the mold issue without actually making an adjustment for the mold? Any suggestions would be greatly appreciated

We get some of these as-is sales occansionally that have a bunch of repairs that are needed. As a lender at my bank, we expect the the appraisal to be done "subject to..." and we set up an escrow for the repairs to be completed after the closing.

 

[Cascada]

A have a similar situation. The roof is leaking in a conventional loan, I did the appraisal subject to repair of leak. I am not a contractor, roofer, I did not climb in the roof just saw the leak and they want a cost to cure dollar amount. How can I give an estimate of repair if I am not a contractor or roof specialist. Give an estimate like that does not sound safe.

 

[residentialguy]

From the look of the hardwood, I would factor in cost to cure to REPLACE that floor, there's no getting the mold out of that wood. I would make is subject to "subject to new roof, verbally told quote in hand of $XX,zzz ( love those tile roofs), mold remediation inspection, ( close up picture of the floor and what has happened to it) and any other mold covered surfaces. Marco Island is the high rent district and anyone buying there will expect that to be totally cured.

I would clearly state the issues and make the report based on Hypothetical Condition that it is repaired. Then state the property condition in the grid as C3 and make sure you mark check box 3 on hypothetical condition that the roof and mold issues have been replaced/repaired. Don't get into cost to cure. Just say that due to the unknown scope of work needed for repair, cost of repair will need to be determined by a specialist in these areas of repair and left to lender's discretion.

 

[Cascada]

I would clearly state the issues then state the property condition in the grid as C3 and mark check box 3 on hypothetical condition that the roof and mold issues have been replaced/repaired. Don't get into cost to cure. Just say that due to the unknown scope of work needed for repair, cost of repair will need to be determined by a specialist in these areas of repair and left to lender's discretion.

I did a similar comment on the appraisal. This will be an estimate and if you are not sure about a number then you should disclose that in the report. Liability.....

 

[CANative]

The "mold" looks more like there was something there leaking (like an aquarium or perhaps a plant stand.) I guess it could be pipes leaking from below but the shape seems to be to regular for that.

I think it's more of a cosmetic issue.

 

[Kyle77]

Wow, $38,000 for 40 squares? Even with 20% waste on a really cut up roof still shouldn't be over 25k tiled. That's cut up too.

 

[Kyle77]

See your in Florida, that may be an entirely different ballgame on second thought. Still seems really high to me.

 

[Scott R Marshall]

My thoughts line up with others. $38K on a roof is just an absolutely crazy number, even for 4500 square feet, unless maybe we're in a high dollar area where "only the best" will do.

My recommendation would be to only do the assignment "subject to" repair and avoid any type of client scenarios where they ask you to also include an estimated cost to cure unless the client wants to do it on their dime. There is no way you are qualified to "guesstimate" and while possible, they time and money you will spend on getting various quotes from local professionals could easily add up to more time then you'll spend working on the assignment and more money than you are currently getting paid for the assignment. If the listing agent wants to take on the task that's fine as well but you need to get the quotes in writing. Verbal "well I think it'll be's" are a good way to get into A LOT of trouble.

 

[Rich Heyn]

Unlike the other condition ratings, C6 is not a holistic rating.

C6 applies to dwellings that have deficiencies or defects that affect the safety, soundness or structural integrity of the dwelling. If, for example, the roof is leaking and it affects the soundness of the dwelling, then it's a C6 no matter how good the condition of the dwelling might otherwise be.

Likewise, if a dwelling does not have deficiencies or defects that affect its safety, soundness or structural integrity, it's not C6 no matter how bad the condition is otherwise.

 

[CANative]

My thoughts line up with others. $38K on a roof is just an absolutely crazy number, even for 4500 square feet, unless maybe we're in a high dollar area where "only the best" will do.

My recommendation would be to only do the assignment "subject to" repair and avoid any type of client scenarios where they ask you to also include an estimated cost to cure unless the client wants to do it on their dime. There is no way you are qualified to "guesstimate" and while possible, they time and money you will spend on getting various quotes from local professionals could easily add up to more time then you'll spend working on the assignment and more money than you are currently getting paid for the assignment. If the listing agent wants to take on the task that's fine as well but you need to get the quotes in writing. Verbal "well I think it'll be's" are a good way to get into A LOT of trouble.

http://www.newenglandmetalroof.com/roofing-calculator.html