VA liquidation for house with no kitchen and no bathroom

[Zoe]

The H&B use is likely completed. Do your job and deduct cost to complete plus entrenuerial incentive.

You have many cost sources available for cost to complete estimate. You can talk to some locals on building on what their target goal is on cost vs sales price for entreprenuerial incentive. I would say it somewhere between 10% and 20%. I may be high.

5% on a $1,000,000 home is pretty good entreprenurial incentive.

 

[valuecommando]

There are actually other bathrooms that are functional yet the kitchen situation is in need of repair.

 

[Zoe]

There are actually other bathrooms that are functional yet the kitchen situation is in need of repair.

Tell me what kitchen and other bathrooms need.

 

[Zoe]

It doesn't really matter. You are doing "as is" and having to deduct for repairs and condition.

VA is not going to repair this house.

The only way VA would do it is if Veteran was on the loan with VA.

There is no other way VA is going to fix the house.


The only other way would be if the VA hired a contractor to finish it out. I have no personal testimony they have ever done that for H&B use.

You know well it won't qualify "as is".

 

[valuecommando]

There is only one kitchen and it is almost nonexistent because it has been completely gutted and even has no flooring. One bathroom has also been gutted and has no flooring. Yet it does have other fully functional bathrooms and functional bedrooms that have been protected from the unfinished remodel.

 

[J Grant]

Yes, it's a liquidation. The problem that I'm running into is that some appraisers would classify this as a C5 rating because it has solid walls and a solid roof while others would say that's it's a C6 rating because it has no flooring, no kitchen, and no bathroom. What are your thoughts on the condition rating?

C5 imo - C 6 means safety and health issues, and I fail to see how the lack of a kitchen or bathroom is a safety issue. The house lacks full utility until those rooms are finished.

It's your appraisal, and you have to decide - read the definitions again to see which best applies.