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Unusual Stip Request regarding power lines over garage

KeyWhiz

Member
Joined
Dec 9, 2007
Professional Status
Certified Residential Appraiser
State
Nevada
Always something new in this line of work, eh?

Recently completed an FHA appraisal where I noted a power line crossing over a detached garage to reach the home and made the report "subject to" rerouting the power line. I received a revision request asking this:

Revision request from Lender:

**urgent We have spoken to power company and city. There are a few cables that run directly over the garage and one of them IS the power line.



Few things:

1) This is super common for the area so no variance will be issued and probably why the first appraiser didnt mention it.

2) The garage was built after the power lines were installed

3) City will not reroute the power line around the garage

4) Can we ask the appraiser to remove the garage from the value calculation?


My first instinct is to reply with:

1) don't care how common it is and the first appraiser is an idiot for not mentioning it and can probably expect a deficiency notice from HUD sometime in the future.

2) also don't care. I'm here to appraise the property TODAY. Not before the garage was built.

3) not my problem

4) huh?

My guess is removing the garage from the appraisal doesn't change FHA's concern for safety and soundness regarding the power line. But I've never had such a request before. IS this a valid way to address the problem?
 
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This won't help much, but the best advice I have seen regarding power lines over garages is, “keep your tongue off it, and you’ll be fine.”

It would be news to me to find that a residential power line over a garage is a safety and soundness issue according to any credible source. However, unless the garage was specifically excepted from the appraisal upon engagement, I would not remove it from my report. If they were to agree to a new assignment, I would clearly report in the new appraisal that the garage exists and is being excluded at the request of the client (and, if you have a credible source, that is is a safety hazard).
 
Always something new in this line of work, eh?

Recently completed an FHA appraisal where I noted a power line crossing over a detached garage to reach the home and made the report "subject to" rerouting the power line. I received a revision request asking this:

Revision request from Lender:

**urgent We have spoken to power company and city. There are a few cables that run directly over the garage and one of them IS the power line.



Few things:

1) This is super common for the area so no variance will be issued and probably why the first appraiser didnt mention it.

2) The garage was built after the power lines were installed

3) City will not reroute the power line around the garage

4) Can we ask the appraiser to remove the garage from the value calculation?


My first instinct is to reply with:

1) don't care how common it is and the first appraiser is an idiot for not mentioning it and can probably expect a deficiency notice from HUD sometime in the future.

2) also don't care. I'm here to appraise the property TODAY. Not before the garage was built.

3) not my problem

4) huh?

My guess is removing the garage from the appraisal doesn't change FHA's concern for safety and soundness regarding the power line. But I've never had such a request before. IS this a valid way to address the problem?
Before we can determine if that's an actual problem or not, you need to tell us if it's a transmission line, distribution line, or drop line. Transmission lines and distribution lines seldom lie directly overhead of any sort of improvement, particularly in platted subdivisions. There are different requirements for transmission lines versus distribution lines, by the way. Drop lines are fine unless they pass directly over a water feature. I condition for those to be raised high enough where nobody can touch them when standing flat-footed on the ground, however. Sometimes excessive distance from the pole to the meter causes them to sag too low and it could be a sad day if the ground was wet and you reached up and grabbed a hold of one of those.
 
This won't help much, but the best advice I have seen regarding power lines over garages is, “keep your tongue off it, and you’ll be fine.”

It would be news to me to find that a residential power line over a garage is a safety and soundness issue according to any credible source. However, unless the garage was specifically excepted from the appraisal upon engagement, I would not remove it from my report. If they were to agree to a new assignment, I would clearly report in the new appraisal that the garage exists and is being excluded at the request of the client (and, if you have a credible source, that is is a safety hazard).
I have no credible source that it is indeed a safety hazard. I only know that FHA will not insure a loan on a property that has a power line going over any structure or swimming pool, spa, etc. as per their handbook.

The Appraiser must notify the Mortgagee of the deficiency of MPR or MPS if the Overhead Electric Power Transmission Lines or the Local Distribution Lines pass directly over any dwelling, Structure or related property improvement, including pools, spas, or water features.

I presume it is because they consider it a safety hazard, but maybe they have another reason. :shrug:
 
It's not a big deal. Revise and go on. If you want to file against the first appraiser and go before the board, I suspect you'll be the one leaving the hearing with your tail between your legs.
 
I have no credible source that it is indeed a safety hazard. I only know that FHA will not insure a loan on a property that has a power line going over any structure or swimming pool, spa, etc. as per their handbook.

The Appraiser must notify the Mortgagee of the deficiency of MPR or MPS if the Overhead Electric Power Transmission Lines or the Local Distribution Lines pass directly over any dwelling, Structure or related property improvement, including pools, spas, or water features.

I presume it is because they consider it a safety hazard, but maybe they have another reason. :shrug:
I would research the definitions of "Overhead Electric Power Transmission Lines or the Local Distribution Lines." Then ensure that your subject actually has one or the other.
 
Before we can determine if that's an actual problem or not, you need to tell us if it's a transmission line, distribution line, or drop line. Transmission lines and distribution lines seldom lie directly overhead of any sort of improvement, particularly in platted subdivisions. There are different requirements for transmission lines versus distribution lines, by the way. Drop lines are fine unless they pass directly over a water feature. I condition for those to be raised high enough where nobody can touch them when standing flat-footed on the ground, however. Sometimes excessive distance from the pole to the meter causes them to sag too low and it could be a sad day if the ground was wet and you reached up and grabbed a hold of one of those.
It's the drop line from the power pole to the electrical panel.

DSCN1441 (2) (640x480).jpgDSCN1442 (2) (640x480).jpg
 
It's not a big deal. Revise and go on. If you want to file against the first appraiser and go before the board, I suspect you'll be the one leaving the hearing with your tail between your legs.
no interest in going after anyone. just want to know how best to address this request.

are you saying I'm wrong here and there's no reason for me to have mentioned the power line?
 
no interest in going after anyone. just want to know how best to address this request.
That drop line is fine. It's even high enough. I would revise my report and remove the repair requirement based on those photos.
 
That drop line is fine. It's even high enough. I would revise my report and remove the repair requirement based on those photos.
well then oops on my part. I thought drop lines were considered to be local distribution lines.

My bad. thanks for the clarifications!
 
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