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Stress Crack?

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Dan/Fla

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Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I did a concrete block home, did and interior inspection. I was surprised that the home appeared in good condition, for an area where this is more uncommon than common. Carpet, ceiling, walls and molding in above average condition. Then measuring the out side the home noted it could use a painting, till I got to the back corner Major stress crack, at least 3 blocks have moved and a crack large enough to get 3 fingers in and could even wiggle them. The travel distance of crack went at least 6 feet in both directions.

The Question: I know I am going to recommend inspection, however what type of inspection do I request? 1. By Structual engineer, 2. License General Contractor, or other. ?

This is not a not FNMA, VA, or FHA. I adjusted $7,500. Good point is home is free and clear per home owner, Even with this extra high adjustment the home is still in range of market value needed. Comparables in area $50,000 though owner only needs $35,000 to put deal together.

Yes fee upfront and cleared bank

Thank you for any help.
 

Jeff Horton

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Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Dan, I am a home inspector and if I was inspecting this house I would recommend an engineer look at that. Sounds like a settling foundation to cause a crack that big. I am also asuming that when you say three fingers you don't meant three fingers in width! So there might be structural issues there. If it been that way for years then it probably not going to get any worse but there is no way that you can determine that.

As an appraiser, I would just disclose the crack, include a photo in the page and suggest or recommend an insepction by a qualified proffesional. I don't think as an appraiser we can actually require an inspection. Nor as appraisers are we qualified to say what type of inspection is needed. Just disclose it, state the facts of what you saw and let them worry about it. Thats our job, no more. I think appraiser get caught up and worry about stuff that is out of area of expertise.
 

Oregon Doug

Senior Member
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Jan 15, 2002
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General Public
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Oregon
Dan - your comment "Even with this extra high adjustment the home is still in range of market value needed." is worrisome to me.

Oregon Doug
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
Dan,

Can you gurantee that the cost to cure is $7,500 for this "crack" condition? If not, better get an estimate from a professional.

Just my opinion
Bruce M
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Dan, both Oregon Doug & Blue1 - appear right in both summaries - recant your estimate (hope you didn't send it in yet 8O ) no bones about it you need a structural engnr. to view this problem; and you also need a pro-for the estimated cost to cure 8)

Don't leave home without either 8)
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Good one, Dan.

Definately call for a structural inspection by a qualified profession. Leave it up to the UW to decide. I also agree with the $ amount not being used unless you already KNOW how much this repair will cost.

Suggestion: Make this report subject to the inspection and any necessary repairs. Your Opinion of the Estimated Market Value is based on the Hypothetical Condition that the structural crack is already repaired per whatever is deemed necessary by the professional structural inspection. Then, make sure that if this all ends up on an addendum that on your URAR it specifically states the the report is null and void without the attached addendum.

Good catch! I might be wrong and if I am, I'm sure someone here will correct me but, I think ASHI Home Inspectors are taught that a structural crack of 1/4 inch width or more should have a structural professional inspect it.
 

Dan/Fla

Thread Starter
Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
No, have not sent in yet, have a friend that is a general contractor, showed him pics (I took @12 of all angles of the damaged area), he told me estimated repair cost of $3,500 to $5,000, since it appeared there was no roof damage. I lean to the high and added some $ for possible inspection and other possible hidden damage not known. The client always request estimated cost to cure on any damage that might exceed $1,000. I always addendum these estimates. I was leaning to requesting a structural engineer. Though I like the idea of not naming type of inspection, Requesting Professional Qualified person to inspect structure, determine cause, and repair problem and all damages from said problem.
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
It would seem to me that the cost to cure could well exceed the estimates you have been given. If the root of the problem is the foundation, those numbers could skyrocket. Patching a crack would simply be a Band-Aid for a much larger and potentially incurable situation if the home is situated on an unstable geological area.
 

Ben Vukicevich SRA

Senior Member
Joined
Feb 9, 2002
Professional Status
Certified General Appraiser
State
New Jersey
Dan,

Appraise it "subject to" the inspection by a professional or structural engineer and "subject to" his/her recommendations on "cost to cure." Basically, you appraise it subject to those conditions and ignoring the crack in the valuation process. It would be like an FHA appraisal reflecting an "as repaired" value-don't attempt the "as-is" value without professional guidance/input.

A crack such as you mentioned is most probably a major failure in the footing and you will need professional advice as to the proper method and costs to cure-why did the footing fail?-and then they'll start digging and then they'll find more things wrong and on and on. Don't even get into the adjustment process for the "cost to cure the crack" in the appraisal because it is a total unknown until examined by an engineer.

Just a thought

Ben
 

TEL2002

Elite Member
Joined
Jan 16, 2002
Professional Status
Retired Appraiser
State
Louisiana
It is aways a just a guess as to what is below the surface.

A friend of mine bought a house (1940 vintage) was going to spruce it up, etc. He thought the brick chimney was not quite plumb... so he dug down to the footer...and found the footer was nothing but 2x8 boards laid flat in the dirt and needless to say they were mostly rotten.

Goodbye chimney.
 
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