Subect "to" because bath is in progress on remolding?

[Matt Anzaldo]

Subect "to" because bath is in progress on remodeling?

My company just completed an appraisal in Shafter, CA.

The bathroom shower was in the process of being put it (it was just a wood frame) and the flooring had been taken out (just concete).

The AL appraiser that completed the appraisal made the appraisal "subject to"
completion of the bathroom remodeling.

The LO calls and wants to know why we made the appraisal "subject to", I explained it, and he wanted to know why didn't we just note the "remolding" and put a cost to cure comment, and drop the value a little because of a non-functional bath. I told him the apprasial will not be changed but if you wanted us to go back and complete a 442 later, we could.

Have you come across the before and how did you write up the bathroom?

Did you make it subject to? or Can you write it up differently?

Any comments I work appreciate.

Thanks

 

[Tim Hicks (Texas)]

What is "remolding?"

 

[Workbox]

What is "remolding?"

I think he means remodeling.

 

[Christine Marie]

Matt, i had one similar situation, last week, the hall [full] bath needed to be 'repaired'/and or modernized', however there was a full bath [completely functional] in the master bedroom, I did mine with a cost to cure, because the fact that one was working was not as diminised as it would have been NO BATHROOM at all, Most of the time, when i encounter something like what you have described, i will try to save myself a little heartache and CALL the M.O, and ask 'how to proceed?"... of course, this is just my penny worth... obviously, this would also be with an "as is" value, because the negative cost to cure would diminish the value....

 

[CANative]

http://appraisersforum.com/attachme...en-you-need-fannie-fanniemae.pdf?d=1144281810

See Item 5 for "as is" versus "as repaired." Also see the first paragraph on the page that follows.

This is more than an item where maintenance may have been deferred. It is a deficiency and for the intended use of the appraisal (mortgage lending using fannie mae appraisal guidelines) the appraisal needs to be made "subject to repairs."

If the client gives you the "this isn't going to Fannie Mae" routine, ask for their UW/appraisal guidelines or the guidelines of their funding source. Otherwise, if you're using a Fannie Mae form with the Fannie Mae certifications, you need to follow Fannie Mae protocols.

IMO

 

[Ray Miller]

Agree with Mr. Boyd // subject to.

 

[Christine Marie]

The bathroom shower was in the process of being put it (it was just a wood frame) and the flooring had been taken out (just concete).

The LO calls and wants to know why we made the appraisal "subject to", I explained it, and he wanted to know why didn't we just note the "remolding" and put a cost to cure comment, and drop the value a little because of a non-functional bath.

Have you come across the before and how did you write up the bathroom?

Did you make it subject to? or Can you write it up differently?

Any comments I work appreciate.

Thanks[/quote] Matt, clue me in here, why does a shower that only has a concrete floor not work? 2nd) the answers you are getting are based totally on the presumption that the bathroom does not function, YOUR question however, appears to be CAN YOU WRITE a situation like this UP DIFFERENTLY than the way it was done? i am sticking to my first response, YES, if you disclose what you have encountered you can do it 'as is', with a cost to cure ESPECIALLY if the lender says you can....

 

[CANative]

Kind of like this Matt?

 

[CANative]

Christine...

Is a property like this still readily marketable? Would a typical buyer purchae a home in this condition? I suppose it depends on the market. Given enough discount a property buyer may see an opportunity. Or it could be a market where there is enough of a selection where they would just pass on this one and buy a house that didn't have an unfinished bathroom.

This are questions that the appraiser needs to consider when doing an "as is" appraisal. Fannie Mae as implied that they don't want the appraiser to develop this type of opinion.

As is appraisals like this should have strong statements that the mortgage may not be eligible for seondary markets that subscribe to Fannie Mae guidelines, policies and protocols.

What do think?

 

[Christine Marie]

am under the impression it's not THAT severe.. Greg, but if it will make you happy, in your picture i would have gone with "subject to"..... :new_blowingup:

still waiting to here back from Matt...