condemnation
214) Vacant Building
01/18/08
Dear Henry,
I recently completed an appraisal of an old apartment building. The structure is to be completely renovated. At the time of my inspection, the
property was not posted as having been condemned and the property owner didn't say anything to us about condemnation. However, the lender phoned me a few days after receiving my report and asked why I hadn't discussed the issue of condemnation. She was sure the building had been condemned and in fact had verified that with the owner.
Without being posted, how would I know that the building had been condemned? It did not appear in the filings with the deed; the title companies didn't
know. Surely I am not supposed to contact the City Building Inspector on every building I appraise to see if the property had been condemned, am I? Do I need to have something in my Assumptions and Limiting Conditions regarding condemnation?
Thanks Henry -- I think you are more help to appraisers than you will ever really know!
Penny Adkins padkins@bresnan.net
Dear Penny,
Nobody should expect you to check with the building inspector every time you make an appraisal. However, when you find a building vacant, you need to know why that is so and do whatever checking is required to find out the answer. A good start is to ask the owner and make a field note of what the owner says, and report that in the appraisal.
If the building is being condemned because of a taking for redevelopment or road construction it is reasonable to expect that you know this, as you are expected to know what is going on in the market area that might affect the value of the subject building. When the building is old, run down, and vacant your talking to the building inspector would be a reasonable expectation of the lender/client.
H2
I recently completed an appraisal of an old apartment building. The structure is to be completely renovated. At the time of my inspection, the
property was not posted as having been condemned and the property owner didn't say anything to us about condemnation. However, the lender phoned me a few days after receiving my report and asked why I hadn't discussed the issue of condemnation. She was sure the building had been condemned and in fact had verified that with the owner.
Without being posted, how would I know that the building had been condemned? It did not appear in the filings with the deed; the title companies didn't
know. Surely I am not supposed to contact the City Building Inspector on every building I appraise to see if the property had been condemned, am I? Do I need to have something in my Assumptions and Limiting Conditions regarding condemnation?
Thanks Henry -- I think you are more help to appraisers than you will ever really know!
Penny Adkins padkins@bresnan.net
Dear Penny,
Nobody should expect you to check with the building inspector every time you make an appraisal. However, when you find a building vacant, you need to know why that is so and do whatever checking is required to find out the answer. A good start is to ask the owner and make a field note of what the owner says, and report that in the appraisal.
If the building is being condemned because of a taking for redevelopment or road construction it is reasonable to expect that you know this, as you are expected to know what is going on in the market area that might affect the value of the subject building. When the building is old, run down, and vacant your talking to the building inspector would be a reasonable expectation of the lender/client.
H2