• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Subject to the VC conditions

Status
Not open for further replies.

Rob Bodkin

Thread Starter
Junior Member
Joined
Nov 9, 2002
Professional Status
Certified Residential Appraiser
State
Washington
Hi all,

I need the help of you super HUD appraisers. I've been doing FHA work for about 5 years and have encountered a situation that I am unclear on and can't find help in the 4150.2.

When I complete an appraisal and there are no negative issues noted in the VC or homebuyer sheets I mark the appraisal as-is and include the vc sheets and homebuyer summary in the atached addedum.

I was told today by another FHA appraiser that I respect very much, my dad, that I am doing it wrong and need to mark the form "subject to" the VC Conditions page.

I scoured the HUD site and REAC but can't find any answers. I'd love any feedback you might have.

Thanks,

Rob Bodkin
Freestone Partners
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Rob,

According to 4150.2, Appendix D, Comprehensive Valuation Package Protocol, page 18:

"Use the 'as-is' value only if there are no repairs needed or if the property is being rejected."


Hope this helps. (But contradicting a parent may be hazardous to your health!) 8)
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
What about subject to a termite inspection? Or if a manufactured home subject to the foundation being inspected by a professional engineer? One of those situations would create a "subject to" for a property without any other problems. Since every property in Arizona requires a terminte inspection, every FHA report is "subject to".
 

Brad Pack

Junior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
California
Rob:

Since you are located within the jurisdiction of SAHOC (State of Washington), I recommend that you go straight to the source. The following link will take you to the SAHOC Appraiser Message Board:

http://www.HUD.gov/offices/hsg/sfh/appr/snatapch.cfm, or, contact the SAHOC Tech Branch at (888) 827-5605.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Rob:
Even if there are no specific deficiencies observed, I personally tend to do ANY FHA appraisal 'subject to' and call for a precautionary Termite inspection on the VC for the sole purpose of reducing my liability exposure... that said: Brad has steered you right, call your HOC.

But even if tech support gives an OK to proceed as you have been, might I suggest that the simple inclusion of a requirement for a "termite inspection and compliance with any repairs required" covers your pocketbook with some security it might be missing otherwise 8O .

Most states require a termite inspection, but your requireing the inspection and the condition of repair on the VC pretty much precludes any possibility of your paying for hidden damages you didn't see! :)
Think on it!
 

Ben Vukicevich SRA

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

Yes, you are correct if you don't need a termite certification in your market area. There are areas in the country that HUD has deemed as not requiring a termite certification. As the others stated usually a termite cert is required so the report will typically be "subject to"

Also, a second floor condo with no repairs would be another example of an "as-is" in an area with a required termite inspection as a termite cert is not required by HUD for upper condo units.

So if you're not under those two scenarios, dad's right.

Hey Brad Pack, glad to see you're still alive out there...and reading the forum...

Ben
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks