Appraisers' Free Forum

Subject is a purchase...purchase contract states a stove will be installed by COE. Today at the property visit
there is still no stove installed.

How can I submit this report without making it necessary for a 1004D to confirm the stove was installed? The subject is selling
about $75,000 - $100,000 under value even in a declining market. Not that I mind doing it but it seems like such a minor thing
to have to make a 2nd trip for. It is close by so no big deal for me but I know the client's borrower won't want to pay for my time
to do the 1004D and I don't want to do it for free....hope I don't sound lazy here.

I'd like to cost to cure it and be done with it. What do you think? As it is without a stove it's still worth what they are paying for it
so I think "as is" value works BUT with it in the contract I am questioning my judgement on what the best way to handle this is.

Thanks in advance!
Alisa

Alisa wrote:Subject is a purchase...purchase contract states a stove will be installed by COE. Today at the property visit
there is still no stove installed.

They're calling it a stove?

How can I submit this report without making it necessary for a 1004D to confirm the stove was installed?

Is it typical for a property to be sold with a range/oven installed? I know it is here.

The subject is selling about $75,000 - $100,000 under value even in a declining market. Not that I mind doing it but it seems like such a minor thing to have to make a 2nd trip for. It is close by so no big deal for me but I know the client's borrower won't want to pay for my time to do the 1004D and I don't want to do it for free....hope I don't sound lazy here.

If you want to take on the possibility of having to purchase and install a range/oven for that low a fee, go ahead and try to ignore it.

I'd like to cost to cure it and be done with it. What do you think? As it is without a stove it's still worth what they are paying for it
so I think "as is" value works BUT with it in the contract I am questioning my judgement on what the best way to handle this is.

Thanks in advance!
Alisa

Honestly, no, not IMHO. Of course, the lender might want to just let the borrower sign off on the fact that it's installed. I just don't understand these people who do that - they know we're coming out there and have to report everything. I had a rather LARGE builder (Poor Unfortunate LitTle supErvisor was all upset) that went ballistic over the fact that I make an appraisal on a new construction subject to reinstallation of the toilet in the 1/2 bath (YOU KNOW WE'RE GOING TO INSTALL IT BEFORE CLOSING).

Not trying to be a smart ass at all, but since you had the contract, state what it says and then state the stove was not there at time of inspection and be done with it. Appraise as is and move on......I can't imagine that a stove could have any large impact on value anyway. You are appraising what is, and valuing it by what the market tells you, you are not appraising to contract price.......unless your skippy and we know you are not or you would not have asked the question.

Alisa wrote:Subject is a purchase...purchase contract states a stove will be installed by COE. Today at the property visit
there is still no stove installed.

Alisa

Alisa, I probably would contact the client, and see if "they" will escrow the funds at closing for the stove, since it is part of the negotiated sales contract as provided to you, and hopefully that gets the monkey off your back....

The contract doesn't say the stove will be there when you appraise it, and incidentally it also is apparently silent with respect to this item of personal property and its value in the t5ransaction. Mark no stove, and if you want to emphasize it then say something about it being not there. This is a problem for somebody other than you to deal with.

Edd Gillespie wrote:The contract doesn't say the stove will be there when you appraise it, and incidentally it also is apparently silent with respect to this item of personal property and its value in the t5ransaction. Mark no stove, and if you want to emphasize it then say something about it being not there. This is a problem for somebody other than you to deal with.

Thank you Edd!

Agree with Edd. Not your problem. Appraise it as-is and move on.

Some ammo: Fannie will buy loans on structures which are incomplete, as long as the cost to complete is less than 2% of the loan. Check the selling guide for a reference.

Personally, I'd courtesy-call the LO about it, and advise that the report will be as-is, and will show no range/oven installed. Come on! You're anguishing over something that's $800 or less in most houses.

Would this be an adverse condition concerning livability?

You must be able to cook for a dwelling to be considered habitable.

Bill Caudell wrote:You must be able to cook for a dwelling to be considered habitable.

There we go. Call the county building inspector and the health department and have the thing condemned. Cost to cure + $500.0, if indeed there is anything to cure, market value = $0. There is more than one way to serve the public interests.

Disagree with Edd this time. One can cook on a hot plate, electric griddle, a microwave oven, or even a portable camp stove. There's nothing in most building codes which says an appliance must be built-in. Trashing the value because of the absence of certain personal property is inappropriate, IMO.

Jim Plante wrote:Trashing the value because of the absence of certain personal property is inappropriate, IMO.

Just when I thought I was seeing more clearly now. Shucks, back to the drawing board.

You state the contract says stove will be installed by COE, and that it is close. Subject to installation. It may only cost a few hundred dollars to do, but it is what it is. Whether you charge a trip fee or not is a business decision, and I'd simply let the customer know that.
Just draw up the 1004D and have it ready. Takes moments to finish and send on.
Just call your client and let them know about it.

Alisa wrote: .

How can I submit this report without making it necessary for a 1004D to confirm the stove was installed? The subject is selling
about $75,000 - $100,000 under value even in a declining market. Not that I mind doing it but it seems like such a minor thing
to have to make a 2nd trip for. It is close by so no big deal for me but I know the client's borrower won't want to pay for my time
to do the 1004D and I don't want to do it for free....hope I don't sound lazy here.


Alisa

Not a personal shot but this is what is wrong with our industry. You know the correct answer of what to do but are afraid to charge for it. A buyer buying 75-100K under market and you're worried he doesn't want to pay for a final. That's just plain lunacy.

Here's what I think some of the commenter's are missing, Alisa. USPAP requires you to analyze the contract; contract calls for the property to have a stove; ergo, appraising it "as is" is probably not an option.

There is a way to do it without having to do a 1004D, however. But, that monkey is on the client's back, not yours.

As one commenter noted, it may seem like a small thing now, but will it still seem like a small thing when you have to pay for the stove to be installed? It could happen.

I would communicate with the lender. Tell them that, because the contract calls for the installation, you must appraise it subject to that installation. However, it is not really necessary for you to call for a final inspection. Let the client tell you what to do about that.

What we often tend to forget, is that the value is not the only thing appraisal is about. In this case you are not only valuing the property, but certifying that that value is subject to all the contract provisions being met. In this case, part of your job is to tell them that the stove is (or is not) there. IMHO, it is not just an issue of value, but also an issue of the appraiser telling the client what condition the property is in, specifically in relation to the sales contract.

Y'all do what you want to .... but ...

I would mention the contract and state that a stove is to be installed .... state that there was no stove at inspection ... mark it as is because you aren't going to really value a used stove in place, and you aren't going to allow $4$ value on a new stove if it was sitting in the box in front of the hole .... I can honestly say I have never dinged a property or allowed a significant value based on the appliances ....

Let's say that it had a stove in it .... 5- 10 years old or whatever the age of the house is .... and you called someone to come take it away ... what do you think they would offer you for it? $25? $50 tops?

Appraise the house .... report what you see ... check the appropriate boxes ... comment if it makes you feel better ... and go get another one ....