Subject to or Cost to Cure

[zifonex]

I'm doing a Refinance Appraisal on a property where the frontal façade is being changed from vinyl to stucco. Of course it was in mid-production when I did the inspection. I'm looking for guidance on what tact to take in reporting this condition. (the owner gave me an invoice that has the down payment and the amount remaining owed)

1. Subject To: To make it subject to completion would seem good as without this façade finished the home marketability would be affected and the homes integrity would be compromised.

2. Cost to Cure: would be easy because the Contractors invoice was provided and in the report. So I wouldn't have to supply or provide any other information

A. On CTC would the total amount owner be deducted directly from the final opinion of value, and would it come off on the grid of the condition line making the subject a C4?

And any verbiage you might recommend to add to this... thank you

 

[Salty]

Ask the lender how to proceed, no sense doing it one way then they com back and ask for it another way.

I'm really surprised to hear of a homeowner switching to stucco. Around me everyone is dumping stucco for siding. Too many issues. Entire Toll Bros developments with bad stucco.

 

[TMG]

Sounds like its mostly cosmetic. I'd do as-is with a cost to cure. If the cost to cure id over $2k, maybe subtract it on the sales grid.

However, if its going to be finished soon, you may want to do "subject to" completion.

 

[Terrel L. Shields]

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