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Old 04-04-2013, 12:08 PM
 
2 posts, read 11,993 times
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I have an appraisal that I'm reviewing and the appraiser noted two issues as needing repair: adding a second strap to the water heater and re-routing the pressure relief valve to an outside wall. (It currently releases to the garage.) The appraiser made the appraisal "Subject To" to the repairs, and I disagree. I believe that with the comps and the minor nature of the corrections, that the value is supported, and that the appraisal should have been "as is", with simply commenting on the recommended corrections. I don't see how $150 in corrections should keep the value from being reported as "as is". I could understand if this was an FHA appraisal, but this is conventional, and the appraiser is digging in her heels. Who's right?
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Old 04-04-2013, 04:48 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 18,172,433 times
Reputation: 6342
In CA the second strap on the water heater is mandated by law. I wouldn't let it pass if I was the appraiser.
The PRV plumbed to the outside of the building falls into the same category. I heater strap; $15 and 20 minutes to install. Depending on the length of the additional pipe for the PRV; $50 plus 45 minutes of labor.

Surely the REA knows someone who can do the repairs and pictures of the repairs ought to be good enough for the appraiser. If the mortgage UW is going to hold you up for them, you don't really have a choice.
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Old 04-04-2013, 05:19 PM
 
4,787 posts, read 8,453,607 times
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Depending on the state/ area you are in both these conditions are building code violations. Not in every jurisdiction but I'm betting on them being violations in the appraiser's neck of the woods.

The violations will also likely get picked up in a home inspection but the appraiser can't depend on that.

I would leave the appraiser alone and let her do her job. Isn't that why there is a section on page one of the URAR that asks specifically if there are any physical deficiencies etc. The appraiser is being asked to look for this stuff.

Now I realize that with a conventional loan perhaps your boss or more likely your investor wants a clean
" as is" appraisal. That is not the appraiser's concern. The appraiser has a whole long list of state & federal rules, regulations, plus insurance liability concerns to worry about and making the investor happy by ignoring code violations is not one of them.

Next time you see this type of thing on an appraisal report, go look up the local building code first. If your
firm wants appraisers to ignore building code violations on conventional loans so they can be "as is", then I suggest you put that requirement into writing and send it to every appraiser you use. See how long it takes for some PO'd appraiser to turn your company into the state banking commission.
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Old 04-04-2013, 08:09 PM
 
4,434 posts, read 7,680,511 times
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I have to say, here in new england, I've never seen straps on any hot water heater or a pressure relief valve plumbed outside, ever. And I've seen sooo many homes. California is weird.
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Old 04-04-2013, 08:24 PM
 
Location: Salem, OR
13,640 posts, read 30,830,919 times
Reputation: 11840
We have earthquake straps in Oregon too. You need two of them. Why would you dig in your heels over a $19.95 repair that the seller can do. I don't know about rerouting the PRV, but I can't imagine it being costly.
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Old 04-04-2013, 09:20 PM
 
Location: Mostly in my head
19,387 posts, read 52,131,102 times
Reputation: 17955
It's recommended in areas prone to earthquakes and required in some states.
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Old 04-05-2013, 05:27 AM
 
Location: MID ATLANTIC
7,461 posts, read 17,082,204 times
Reputation: 7845
You should never see any "as is" appraisals with safety or code violations. There's no grey area here.
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Old 04-06-2013, 01:16 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 18,172,433 times
Reputation: 6342
Quote:
Originally Posted by 399083453 View Post
I have to say, here in new england, I've never seen straps on any hot water heater or a pressure relief valve plumbed outside, ever. And I've seen sooo many homes. California is weird.
We also require Carbon Monoxide detector(s) and smoke alarms and disclosures of any natural hazards too!

California might be weird, but most of these requirements are based on experience. Events like Sandy might make some of these things pop up in New England in the future. Nothing like a bunch of hot water spewing inside the house to make a nice insurance claim.
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Old 04-10-2013, 12:13 AM
 
936 posts, read 1,701,247 times
Reputation: 922
The CLIENT decides whether or not they want their appraisal to be as-is or as-repaired. The client's requirements (which may include Fannie/HUD) are part of the scope of work decision and I find it incredible that the appraiser is forcing their decision on you. Again, if there are GSE underwriting guidelines that you ordered the appraisal to be developed according to, then the appraiser might be following those regs. But if not, then you need to direct the appraiser to develop and report the appraisal in the subject property's as-is condition.

If you want an as-is appraisal then the appraiser still has the obligation (under USPAP) to consider if there is any negative market reaction to these needed repairs.

Appraisers are not building inspectors and I'm quite sure that if you had a code compliance inspector look at the property that the appraiser likely missed all sorts of code violations. So most appraisers tread very carefully when they start to mention code violations because they are then putting themselves out as to being familiar with all the applicable building codes. You likely are dealing with a newer appraiser if she is getting into these code issues. You might want to quiz her on what she did to verify that the electrical and plumbing system are 100% up to code so long as she has taken on that role.
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Old 04-10-2013, 04:30 AM
 
Location: MID ATLANTIC
7,461 posts, read 17,082,204 times
Reputation: 7845
The appraiser may very well be inexperienced, but once she brings them to light (points them out to the underwriter), it's hard to stuff that cat back in the bag. An underwriter can never ignore a code/safety issue, regardless how petty it may be. I don't know about the OP's set-up, but where I am at, those reports go directly from the appraiser to the underwriter.
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