Slippery Slope: As-repaired And The Appraiser's Assumption

[J Grant]

What if the house is vacant, no owner to you ask how they want it done? RE comparing a repair to existing house with new construction is a different topic. I don't see anything in FHA or Fannie about sabotaging deals, nor about asking what a homeowner intends to do to make a repair! Where is that musta missed that section.

The appraiser calls for the repair item, and logic would dictate how it is done, because that is tied in to appraisal credible results

The FHA/Fannie repair requirement is about a property eligibility for a loan, it is not the appraisal.. The appraisal is governed by USPAP, which references not being misleading - it is misleading to make appraisal subject to repair of a deck unsafe condition of loose or rotted boards, then owner removes the deck, and the house is now changed- it is a house with no deck, when the OA was for a house with a deck (and valued as such )

Even with your advice, you cant' have it both ways. If you decide to ask the homeowner what they would like to do, and they say remove the deck, then you should make the subject to condition of removal of deck, with the original OA a house with no deck and valued as such. .

I have never heard of your scenario about people suing because of what you wrote- it's ludicrous but if you want to use it as an excuse, so be it.

 

[J Grant]

There is no "slippery slope" for most appraisers, because most appraisers do their job and state what is to be done for the subject to condition...either repair /replace unsafe deck boards, or remove the deck. Then they go inspect for the 1004 D to see if the condition is met.

At the inspection, either the condition has been met, ( yes) or not ( no). Very simple .. If it is "no", they state any impact on value, and let lender decide next step.

Often a lender will extend another chance for the homeowner to meet the condition and send appraiser out for another inspection, but lender has option to deny the loan. All the appraiser does is provide information , the appraiser does not make lending decisions.

 

[TRESinc]

The appraiser calls for the repair item, and logic would dictate how it is done, because that is tied in to appraisal credible results

that isn't what you said before. you posted that you wanted it done the way YOU think it should be, which is above your pay grade. for the purposes of this discussion you are the appraiser, not the licensed/bonded contractor, so you do not get to dictate how a repair is done. the appraisal called for fixing the safety issue and that was done by removing the safety issue.

At the inspection, either the condition has been met, ( yes) or not ( no). Very simple .. If it is "no", they state any impact on value, and let lender decide next step.

and again in this scenario the condition was met - the safety issue was resolved. just because they did not resolve it the way YOU wanted does not change the fact that it has been resolved.

 

[residentialguy]

ALL of that can be eliminated by just asking the client how they are planning to cure the adverse condition and appraising the property appropriately.

What if the house is vacant, no owner to you ask how they want it done?

 

[J Grant]

So now the client decides what repairs are made, not you the professional appraiser, who they hired to do exactly that? Your posts on this topic are in Twilight Zone land......

 

[residentialguy]

So now the client decides what repairs are made, not you the professional appraiser, who they hired to do exactly that? Your posts on this topic are in Twilight Zone land......

The lender doesn't decide how the repairs are going to be done, the homeowner does that. But, who's giving you the appraisal order? They have to be on board with the way we perform our appraisal, don't you think? We report to the client that there is a problem and need to ask the HO what they are planning so they can tell us how to proceed with the assignment. I discuss the appraisal with the client, not the HO. Sorry for the confusion on that...I made the assumption that appraisers knew not to talk to the HO about assignment results.