Investor · Katy, TX · Member since 2013 · 37 posts · 7 votes
Hi,
I have a simple basic question. The appraisal of a property I'm about to close on states the following: "Estimated Market Value = $ XXX "AS REPAIRED"". I'm assuming that this implies that the estimated value suggested is contingent to the repairs necessary to take the property to the same standards as the comps used (ARV).
Question: What if the property needs some mayor repairs? (not the case of this particular one), would an appraiser use the same approach and provide his opinion of the EMV based on "as repaired" (ARV)? or will he just provide his opinion of estimated price based on current conditions?
An appraiser can do either as required. I bought a shell that needed a full gut rehab and got an after repair appraisal based on the work expected to be done.
Yrs. it's called a subject to repairs valuation. To finalize the appraisal, the appraiser comes back out after all work is done and completes the appraisal and confirms value.
"This appraisal is made [check] “as is” [or] "subject to completion" per plans and specifications on the basis of a hypothetical condition that the improvements have been completed [or] subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed, [or] subject to the following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair:..."