"Subject to"

[Lee SW IL]

I recd a RUSH assignment Friday for a refi, wants it back by tomorrow. Not gonna happen. Property is in decent subd, but the subject has quite a bit of cost to cure, Roof has singles missing, new one is required. Floor carpet is torn and very worn. Exterior is the external depreciation of the other homes in the area with derlict autos, lawn mowers, bikes, ect.

The problem is a few rooms I cannot see from floor to ceiling due to "junk" piled. Basement has approx 5ft of "junk" piled with a small path next to the furnace, hot water heater and electric box. But there is no way to tell if the basement is damp, From what I see it is not.

Garage same story 5ft-6ft of junk piled, but there is a crack with a gap of approx 1/4inch wide, I don't know how long, but the crack is approx 6ft in front of the kitchen door and it feels like it dips down next to the house.

My question is what inspections do you suggest since alot of the home is not viewable? Just a general home inspection?

I don't see anyway that I could do this appraisal "AS IS" since I cannot observe the most of the basement, and other rooms of the house.
I kinda hopping that when I call them and tell them I can only appraise "subject to" the'll cxl this order.

 

[Pamela Crowley (Florida)]

Lee,

I would fully explain the situation and what you couldn't observe. Make it subject to another inspection when you can see what you need to see that may cause additional VC repair or inspection items.

Regarding the crack, subject to a building contractor or engineer inspection and report.

 

[Don Clark]

8)

I agree with Pamela(I usually do :wink: ). I see lot's of this stuff. I once drove up to a house in a mid scale neighborhood(around here the is about $250-300k), great curb appeal, super landscaping. When I went inside the "Lady of the house" had made me a path so I could see in each room. Could not access any bedroom, bathroom, and barely the kitchen. All rooms were full of trash, debris, junk, stacked furniture, etc. I simply put in the report that the condition of the property could not be ascertained due to large quantities of personal property in all rooms not allowing appriser to view condition. I made the appraisal "subject to" my being able to properly inspect the property. Lender killed the deal. I have also gone to houses I literaly could not get inside of they were so full of personal property, junk, debris, etc. Those I turn down. Also, Cats & Dogs sometimes pose a problem. I usually state that the condition of the property is unknown due to high amount of evidence of animal presence. If the lender cannot figure that one out I will tell them privately, over the phone, but not in writing.

Good luck

Don

 

[bradellis]

Don,

I once did a brick bungalow in Chicago owned by an elderly gentleman. As I entered the home I was struck by how much "stuff" was there. Only one path through the home, but I could see what I needed to. Same in the basement- rows of boxes about shoulder high with a single path. Now we have all seen these, right?

THIS one. however, was not just garbage. Seems this fellow could not stop watching QVC and bought everything in sight. NONE of the boxes were open- just the way they arrived from UPS and he had no idea what was in the boxes!

Guess he had a REAL need to refi.

Should I have told him to borrow more and set some money aside for a psychologist? (Just kidding). Every time I think I've seen everything, one of these guys comes along...


Brad Ellis, IFA, RAA

 

[Lee SW IL]

Just got off the phone with the lender. He stating to "AS IS" with a hypothetical conditions.

Appraisal is be in based on only what is viewable.

The crack in the garage. I should suggest a contractor/structural report.


Can I do this "AS IS", with hypothetical conditions as described? I don't think so, but I would like to make sure I'm not be unreasonable.


Thanks

 

[Judy Whitehead (Florida)]

I have had this happen before, although perhaps not as bad as the posts above. The appraisers in snow country cannot remove all of the snow around the exterior, as well, and of course, someone could always put a couch in front of a hole (or on top of one). Just be sure you make it very clear what can be seen or what ''cannot'' be seen due to the obstacles.

 

[Larry Lyke]

Try this phrase: "House full like a dumpster." [Smile]

I went on a Listing appointment some years back to a 'dumpster house.' I was going to work with the woman and help her out UNTIL I was going down to the Basement. I was on the 5th step from the bottom and the stuff was stacked solid to the joists. She was behind me, so I spoke nonsensical pleasantry stuff until I could lure her to the Living Room... Then I told her to forget it until she cleaned the place up!... Then beat a very hasty retreat.

Also, I've learned you can't turn these peole in to the authorities, even though you've sure they need serious mental health care because you're liable to find your company and agents on the 6 O'clock News and a lawsuit for further mental anguish.

Back to the appraisal issue: You can do an "As Is" with hypothetical(s) that the viewable condition is representative of the rest of the house. Indicating, of course, that the House is rather too full of personal belongings.

Somebody mentioned VC write-up but I didn't interpret your opening post as being an FHA appraisal.

I don't understand your crack in the Garage comment. Is it the slab or settlement or a crack in the wall between the House and an attached Garage?

 

[Lee SW IL]

Thanks for all your replys.


It is not an FHA, it just a conv refi.

The crack is hard to explain. But, I'll try better.

From the kitchen door, you step down on the floor of the concrete, approx 6-7ft from the door is a 1/4 inch +- crack. From that crack, back to the door, the concrete leans back to the door. I of course, do not know how long the crack is due to more personal property.

I advised them that the report will state, a structual inspection should be completed.

 

[Dan/Fla]

Always take good Photos-Are we all having these all at once? I had lookup reading your your post Lee. I though someone was going be hind on I did 2 weeks ago. You described the home I looked at to a T. I did my report using my common Drive/by comments, assumeing condition of area not seen was equal to the area could be seen. UW did not really believe it was as bad as I said. Send UW the interior photos, 1st call back ever with an apoligy.

 

[bradellis]

Lee,

Make sure you and your client are on the same page. He has asked you to use a hypothetical condition. That would mean that you are to assume that something you KNOW is true is NOT true. Nothing in your posts suggests that. What I have gathered is that you saw some of the dwelling but not all of it and now you must complete the assignment without actually knowing certain things.

Doable, but using an extraordinary assumption about the condition of the areas you did not see.

From your description (house with lots of deferred maintenance in a nice subdivision) it would appear to be in less than average condition. Given that, your extraordinary assumption could easily assume that the balance of the home (unviewed portions) is also in below average condtion.

A hypothetical condition would exist if your client told you to NOT value it with the crack in the garage but to value it with no crack in the garage. Remember to disclose everything.

Brad Ellis, IFA, RAA