PDP - 170647 - 09.29.17

PROPERTY DISPOSITION PLAN SUBJECT PROPERTY DATA
170647 9.21
Address
80 Exchange Pl, Port Chester, NY 10573
Loan #
Listing Agent
Yara Annechiarico
Proximity to Subject
Property Type
Single Family
Area Type
Suburban
Subject Front
Sq. Ft (total)
1,790
Total Rms
9
# Bed
4
# Bath
2
Age
Garage
92
2-car
Other
Fireplace
CONDITION AND INSPECTIONS
The subject is truly in poor condition. In addition to the basics of paint, carpet, drywall and landscaping, the home failed all three inspections (roof, pest and heating), has issues with the exterior siding, crumbling porch, failing sump pump, damaged doors and ore. A pervasive odor is coming from the basement from standing water than may be related to issues with drainage.
Description
Poor
HVAC
Not Needed
Obtained
Roof
Not Needed
Obtained
Pest
Obtained
Not Needed
Obtained
Not Needed
Boiler. The current boiler is very corroded and non functional.
The existing roof life expectancy is 6- 9 months depending on how severe this Winter becomes. Roof is at the end of its life.
Visible evidence of WDO located in the basement. Recommended termite treatment.
TITLE, TAXES AND TRIVIA
Well/Septic
None.
Taxes
Title
Clear
Not Clear
No
Current
Yes
Not Current
Vesting: Deed recorded 06/13/17. Vesting: SRMOF II 2012-1 Trust, U.S. Bank Trust National Association, not in its individual capacity but solely as Trustee.
HOA
Yes
No
Comments:
Elevation Cert Needed?
Yes
No
Next Due: 12/03/17 Comments: Taxes run $15,352 annually and are paid current.
Flood Zone
Utilities
Established 09/01/17 Established 09/01/17 Established 09/01/17
SUBJECT PROPERTY MARKETING RECOMMENDATIONS
Gas
Electric
On
Off
Comments
On
Off
Comments
Water
On
Off
Comments
Other
Strategy
Preservation
Commission – Agents
5.00%
Recommended List Price
$299,900
REO Servicing Fee
1.00%
Type
Anticipated Sales Price
$275,000
Management Fee
$175
Upgrade
Anticipated Concessions
$0
Anticipated Days – List to Close
75
Full Repair
Net Anticipated Sales Price
$275,000
Staging
None
Lendable
Repair/Upgrade costs
$0
Anticipated Time to Repair
0
Preservation
Description of Repairs
FINAL RA BUDGETS Amount
$87,135 $74,145 $53,395 $15,200
Agent Comments: the property needs updating to meet the buyer expectation that will include updating Kit & bths, Paint entire house, refinish hardwood floors, repair front porch, the bsmt takes in water. this will require permits from town and can take along time to complete. if we sell it as is and price it accordingly the purchaser will feel as if they got a bargain and can deal with the town and all the repairs.
2nd BPO: There is foul smelling standing water in the basement. It was not apparent where the water originates. This could be a safety hazard, if the water is deemed to be sewage. The furnace appeared to be really old. I was unable to test whether it was working. It may be in need of replacement
Blueprint Repair Determination:
Because of the condition of the property inside and out, this property is a classic REO example of do-it-all or do nothing. This is to say, the decision is to spend $87,135 on upgrade repairs to complete for maximum area value or leave all the headaches and heartburn to the buyer. To do any repairs less than full upgrade repairs, would leave objectionable issues to a buyer. So the question becomes more about value and time.
The upgrade budget of $87,135 would address all the big-ticket issues: roof, siding, paint, flooring, plumbing, sump pump, porches, etc. This approach does not, however, include upgrades to the bathrooms or kitchen nor does it include new appliances. The upgrade budget would require 60 days to complete and possibly longer as permits would be required. If upgrading the kitchen and bathrooms were to be included, the budget would easily increase to $100K maybe more. The possibility of change orders for unseen issues under the roof and in the plumbing is moderate to high.
More analysis of repairs is discussed in the valuation section below.
Blueprint Asset Management Prepared: 9/29/2017


PROPERTY DISPOSITION PLAN
VALUATION
Valuation #1
Valuation #2
Valuation #3
BLUEPRINT RECONCILED VALUES
Value Type
Interior BPO
Interior BPO
AVE
Repaired Value
$375,000
Valuation Provider
Listing Agent
AVM
‘As-Is’ Value
$275,000
Name
Yara Annechiarico
Camille Allen
Agent Proximity to Subject
9.21
1.82
Valuation Date
09/03/17
09/18/17
As-Is ASP Value
$289,000
$250,000
Repaired ASP Value
$350,000
$350,000
$385,326
Estimated Repairs
$45,500
$59,500
GENERAL AREA – Port Chester is a village in Westchester County, New York. The village is part of the town of Rye. As of the 2010 census, Port Chester had a population of 28,967. The village name is pronounced with the same syllable stress pattern as that of the county, which contains it, i.e., "PORT ches-ter", not "Port CHES-ter".
Port Chester is one of only 12 villages in New York still incorporated under a charter; the other villages either incorporated or re-incorporated under the provisions of Village Law.
SUBJECT NEIGHBORHOOD – The area is made up of middle working class families. The area is known as a medium level crime neighborhood; not the safest, but certainly not a high crime area. The area is considered average in desirability. The neighborhood is close to highways, shopping and schools.
SUBJECT – Built in 1925 on a .12 acre lot, the subject is a 1,790 square foot SFR with 9 rooms of which 4 are bedrooms and 2 are bathrooms. The subject is a Colonial style build, includes a 2 car attached garage, a 300 square foot basement partially finished and has a fireplace. The LA explains that the home is at the bottom of a hill, which causes rain water to collect around the property. She also suspects that sewer line water collects in the plumbing lines of the property, which may contribute to the odor that is noted by both agents.
LIKELY BUYER – The potential buyer is more likely a retail buyer looking for a fixer upper over an investor/contractor buyer. Investor interest is low in this area and most look for a deep discount in price. The LA says that do-it-yourself shows have motivated an increase in as-is interest in buyers. The area is popular with families relocating from Connecticut. Marketing will be geared to both buyer types; retail and investor, all the same.
VALUATION –
Some general notes about the two BPO’s & AVE obtained:
• The Supplemental Agent (SA) did not bracket the subject in GLA with sales comps and chose the sale of a 60 year newer build as the best comp, both of which are not great factors of the BPO. The SA used recent sales. The distances of the comps are at the maximum distance acceptable for a suburban area.
• The LA also did not bracket the subject in GLA with sales comps and used no comps with the same bedroom count as the subject. The LA also used recent sales as well. The LA did use comps closer to the subject than did the SA.
• The LA and SA agreed on the repaired value of $350,000. In contrast, they were distant in their opinion of the as-is value by $39,000.
• The AVE was swayed by two upgraded comps; but none-the-less the report serves as a support to our as-repaired determination.
SOLD: The best support of the LA/SA repaired value is the comp at 124 Fairview. The comp is 0.7 miles from the subject (same community), similar in age, build and lot size. The comp is nearly 500 square feet smaller with one less bedroom, one less bathroom and one less garage space. The comp was noted to be in average condition at sale. The subject was listed on 09/22/16 for $385,000 and sold 231 days later on 05/01/17for $351,000.
MLS: https://www.coldwellbankerhomes.com/ny/port-chester/124-fairview-avenue/pid_14497154/
MLS Comments: Family home now ready for new family to come and enjoy. Home offers Living Rm. with Fireplace, Formal Dining Rm. Eat-in-Kit. Access to rear. Second Level Master-Bed, Bedroom, Bedroom, Bathroom Open Front Porch and detached 1-Car. Priced to sell
In my opinion, this comp sets the lowest as-repaired value. The fact that the homes is smaller in GLA and inferior in bedroom and bathroom count, would argue that the subject is worth more in as-repaired condition.
SOLD: Another comp considered was the sale of 126 Fairview. The comp is also 0.7 miles from the subject (same community), similar in age, build and lot size. The comp is 225 square feet smaller with one less bedroom, one less bathroom and no garage. The comp has a fully finished 400 square foot basement. The property is noted to be 3⁄4 upgraded at the time of sale (new bath, new paint, refinished floors, new roof, newer boiler and new electrical) with only the kitchen and landscaping to be upgraded to complete the renovations. The comp was listed on 07/20/17 for $409,000 and sold 36 days later for full price.
MLS: https://www.realliving.com/homes-for-sale/126-Fairview-Avenue-Port-Chester-NY-10573-202736393
MLS Comments: A unique opportunity! Wouldn't you love to purchase a house that is 3/4 renovated? Finish it to your own tastes? Here is your chance. Three bedrooms, 1 bath. Bath is brand new. All new walls and freshly painted throughout. Floors refinished and gleaming. New roof, two year old boiler and brand new 200 Amp electric service. Buyer to finish the kitchen to your own tastes with brand new cabinets and appliances and finish the exterior with your own new curb appeal and landscaping. A great opportunity at a great price in beautiful Port Chester. The clean out and clean up is all done. Finish it up the way you want a very advantageous price.
In my opinion, this comp sets the argument that the subject, if completed upgraded, would sell for more than the LA and SA value. Upgrade repairs would have to include upgraded bathrooms, which our repairs do not.
LISTED: Our independent search of comps found 46 University Place. A listed comp, .60 miles from the subject. The comp is similar in build, age, GLA, room count and lot size. The comp appears to be in average condition. Some updates to the interior since its original build; wear and tear to a small backyard deck. The comps was listed as a short sale on 06/28/17 for $445,000 then reduced on 07/13/17 to $399,000. The comp has not yet sold.
MLS: https://homesforsale.century21.com/property/46-UNIVERSITY-PL-PORT-CHESTER-NY-10573/50164604/detail
MLS Comments: Short sale subject to bank approval. Well-maintained single-family home on dead end street. Home features hardwood floors throughout.
Influenced by the comps above, our reconciled as-repaired value is $375,000, slightly higher than the LA or SA.
Blueprint Asset Management Prepared: 9/29/2017


PROPERTY DISPOSITION PLAN
As-is value is always a bit of guess in cases when the subject is in poor condition. Comparable sales In a similar condition are rare to find. Value becomes subjective as buyers opinions will differ as to what a property in poor condition is worth....”beauty is in the eye of the beholder” as they say.
Our independent search found a very recent comparable sale. The closest sales comp in condition to the subject was the sale of 394 Irving. The comp is 0.3 miles from the subject. The comp is similar in age, similar in build, similar in lot size, similar in garage space, 300 square feet larger in GLA, has one less bedroom and one less bathroom. The home was in fair to poor condition at sale. The home was listed for $299,000 on 08/09/17 and sold on 09/25/17 for $295,000.
MLS: http://www.estately.com/listings/info/394-irving-avenue--1
MLS Comments: OPPORTUNITY KNOCKS! Diamond in the rough - Charming Tudor style stucco 3 bed 2 bath home in a great and upcoming neighborhood. 9+ ft ceilings. Full size basement, flat sizable lot. Great location, walk to train, schools, shops, library and more. Port Chester has a Vibrant Waterfront with Excellent Restaurants and Entertainment. As a Rye Town resident you have access to Rye Town Beach and more. Westchester Country airpot 10 minutes away. Train to NYC 40 min. The house needs a lot of work but potential is huge. Single-family house in a multi-family zoning. CASH ONLY!!! Bring your investors, bring your ideas. Strictly sold as is. Buyer pays all NYS transfer taxes. DON’T LET THE DEAL GO AWAY!
This comparable gives a good indication of price for the subject as-is. Based on MLS comments I will assume the condition of this comparable is more fair than poor. To compare to the subject, I would adjust the comp down by $25,000 to account for the foundation and plumbing issues we face with the subject. This is to say, this comp supports a value of $275,000 as-is for the subject.
Full bids for the repairs to the subject ranged from $101K to $112K. We found some savings by obtaining a third quote for some items from a handyman, which brought the upgrade budget down to $87,135. The scope of these bids addresses all of the major issues with the subject, as well as paint, carpet, hardwood refinishing and landscaping. While the repair scope does provide for some upgrades, the scope does not upgrade the bathrooms or kitchen to modern standards, nor does the scope add new appliances. If we were to include additional upgrades, the total upgrade budget would be $100K to 125K, maybe even more.
Based on the comps and cost to cure, our reconciled as-is value is $275,000.
Repairs for the subject are a big undertaking for a relatively low price point. The scope of the repair project would be time consuming, involving permits and likely to include change orders once the roof in removed and plumbing is addressed. When all is said and done, the subject would be in average condition but still lacking upgrades to WOW a buyer. We considered preservation repairs at $15,200 (pest treatment, sump pump repair and boiler replacement), but even those repairs are viewed to be a waste of investment (echoed by the LA). The first strategy should be to attempt an as-is sale and leave the buyer to take on the challenge of permits and repairs.
Recommend no repairs, listing assertively at $299,900 for a sale at not less than $275,000.
COMPARABLES
Best Sold Comparable Property
Property Address
Sale Date
Sq. Ft.
# Bed
# Bath
Garage
Age
DOM
List Price
Sales Price
126 Fairview Ave
07/20/17
1,565
3
1
None
87
36
$409,000
$409,000
MLS Comments: A unique opportunity! Wouldn't you love to purchase a house that is 3/4 renovated? Finish it to your own tastes? Here is your chance. Three bedrooms, 1 bath. Bath is brand new. All new walls and freshly painted throughout. Floors refinished and gleaming. New roof, two year old boiler and brand new 200 Amp electric service. Buyer to finish the kitchen to your own tastes with brand new cabinets and appliances and finish the exterior with your own new curb appeal and landscaping. A great opportunity at a great price in beautiful Port Chester. The clean out and clean up is all done. Finish it up the way you want a very advantageous price.
Link: https://www.redfin.com/NY/Port-Chester/126-Fairview-Ave-10573/home/20067357
Best Active Comparable
Property Address
List Date
Sq. Ft
# Bed
# Bath
Garage
Age
DOM
Original LP
Current LP
46 University Place
06/28/17
1,748
4
2
None
117
89
$445,000
$399,000
MLS Comments: Short sale subject to bank approval. Well maintained single family home on dead end street. Home features hardwood floors throughout. Link: https://www.zillow.com/homedetails/46-University-Pl-Port-Chester-NY-10573/33087080_zpid/
MLS comments: Short sale subject to bank approval. Well-maintained single-family home on dead end street. Home features hardwood floors throughout.
MARKET STRATEGY
Recommend no repairs, listing assertively at $299,900 for a sale at not less than $275,000.
Completed By:
Stephen Sherman
Phone #
801-842-8734
Email
[email protected]
Blueprint Asset Management Prepared: 9/29/2017


PROPERTY DISPOSITION PLAN
Blueprint Asset Management Prepared: 9/29/2017