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

[residentialguy]

You are not telling them to BUILD a deck. You are telling them to REPAIR a deck based upon what you are qualified to OBSERVE; You observed that there were unsafe floor boards. You conditioned that they replace the unsafe floor boards. What plans and specs do you need for that?

No, you report an adverse condition and they need to cure it. How they do that is not up to you.

 

[djd09]

 

[cjski]

[QUOTE="residentialguy, post: 2815198, member: 123200...had a sale where the deck had some unsafe boards that needed to be replaced. I made the deck subject to curing the safety hazard. I assumed a few bad decking boards would be replaced..[/QUOTE]DISCALAIMER: I've not read this whole thread...

When you are including a HC for a repair, where one of the options open to the homeowner is removal of the offending item in its entirety...include an EA that your opinion of value includes this item, and that removal may affect the value.

 

[residentialguy]

When you are including a HC for a repair, where one of the options open to the homeowner is removal of the offending item in its entirety...include an EA that your opinion of value includes this item, and that removal may affect the value.

That might be a possibility except for that pesky little pre-printed page 4 saying that you can't add an EA.

Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted.

Besides, it's not our job to give them our options. We don't know what they want to do. The simplest way is to just ask them what they plan on doing so you can appraise it correctly the first time. It's not that difficult. That's what we do with new construction.

 

[Tom4value]

No, you report an adverse condition and they need to cure it. How they do that is not up to you.

It is up to me to determine if they did it in a satisfactory manner! To do that, you have to specify what needs to be done. In your case, replacing damaged decking boards is a no brained but in other cases I relay what the BI wants. If you don’t, you are just asking for trouble.

Way back in my early days, I was appraising a two family and one unit lacked a second egress. I made the appraisal “subject to a second egress on unit two”. When I was sent back out, I found that the owner leaned a step ladder against a window! He didn’t even nail it there. He plopped it against the house and said, “there, done”. When I reported that it was not satisfactory, I got a world of crap from the owner and even the lender for not specifying what I was requiring.

If you leave it up to someone else to determine what you are requiring, you are not only opening yourself up to headaches, you are not doing your job.

 

[J Grant]

Besides, it's not our job to give them our options. We don't know what they want to do. The simplest way is to just ask them what they plan on doing so you can appraise it correctly the first time. It's not that difficult. That's what we do with new construction.

It's not about what they want to do, it's about what needs to be done to fulfill assignment results in a credible manner, aka as repaired needed to bring subject up to the what is represented in the appraisal ( in this case, subject as a house with a functional deck )

Whether it is a repair issue ( subject to repair ) or new construction. ( subject to completion ),, the 1004 d inspection is not about what a borrower wants, the 1004 D inspection is to make sure for the client, that the house was repaired, or completed as house was represented in the appraisal..

All that needs to be stated is "Subject to Repair of the loose deck boards, or " Replace rotted deck boards with new boards". Typically, photos are an exhibit.

Your "authority" is called competence, and is a part of fulfillment of assignment for credible, reliable results . An owner removing a deck did not fulfill the assignment results in a credible manner, because they removed a functional amenity that affects value.

 

[TRESinc]

It's not about what they want to do, it's about what needs to be done to fulfill assignment results in a credible manner, aka as repaired needed to bring subject up to the what is represented in the appraisal ( in this case, subject as a house with a functional deck )

maybe you should go back and re-read this thread. here is what the original post stated:

I had a sale where the deck had some unsafe boards that needed to be replaced. I made the deck subject to curing the safety hazard. I assumed a few bad decking boards would be replaced. I come back for a final and the safety hazard was cured all right, except instead of replacing 1/2 doz boards, he removed the entire deck!

deck removed, safety hazard cured. end of story.

 

[J Grant]

maybe you should go back and re-read this thread. here is what the original post stated:

deck removed, safety hazard cured. end of story.

IT is not the end of story, because now the house is lacking the deck amenity, and the house was valued as such. Removing the deck could have adversely affected value. Read the REST of his post to see how it was handled.

" OP_ instead of replacing 1/2 doz boards, he removed the entire deck! All my comps were adjusted for the decks. I was able to fudge my way out of it because it didn't really have a significant factor in value and the lender was cool with that and just notated the final. But what if that had more contributory value?"

So Tres Inc, you think fudging your way around the fact that the owner removed an amenity that was adjusted for is a good way to handle what happened ? The owner devalued the house and removed an amenity, and house was appraised subject to having that deck amenity. Glad to hear you think that is fulfilling assignment results ( sarcasm)

 

[TRESinc]

IT is not the end of story, because now the house is lacking the deck amenity, and the house was valued as such. Removing the deck could have adversely affected value. Read the REST of his post to see how it was handled.

the deck did not have any significant contributory value so it was not a problem. but you keep right on telling people how to make repairs. hope you are a licensed electrician, framer, plumber, roofer.... or better yet i hope you get the appraisal when i buy a house in florida and tell me how to repair things so i can live off you for the rest of my life.

 

[djd09]

Of course the appraiser tells them what the minimum repairs need to be performed. That is the clients expectation. The authority to do so goes along with the signature. If they do not like it, they can withdraw from the loan. It is called free will.