Appraiser Refusing to Complete Report

[Robbie Bickford]

Hello all,

I am currently under contract on a "4 unit" building in rural Maine. This building was originally a 4500 sqft SFH but was converted to a multi-family about 20 years ago. In the last 2 years there has been a number of repairs to 3 of the 4 units so I would consider them 98% complete and almost move in ready. The front half of the building is a 2500sqft house and it needs about 20k to bring is up to standard. I just heard from the bank that the appraiser is not able to complete any report be it for an "as is" or "subject to" on this building as a SFH, 3 unit with storage in the front house, or 4 unit. See Below:

"This can't be done as is due to the vast number of code violations. The entire structure has been revamped with no permits, no requests and no approvals which the CEO (Code Enforcement Officer) didn't appear they would give them."

The interesting thing is that I had the Code Enforcement Officer walk the house with me not 1 week prior and the only issue that was discussed was the lack of an egress window in a couple bedrooms (planning on fixing this before any tenants move in). I even reviewed with him that the tax records say that the building is a SFH but he assured me that the town does not restrict use of lots to SFH/Multi/Commercial/Ect.

The CEO is willing to write a letter explaining that to the appraiser that the transition from a SFH to a Multi-family was completed 20 years ago and there have been multiple town assessments sense that time. But I am wondering if anyone else has experienced an appraiser refusing to finish a report due to "vast number of code violations" and not a safety issue?

Also, can I request a different appraisal be completed if this person is refusing to complete the report or am I stuck with the first person?

Thanks,

Robbie

P.S. The bank is saying that due to the lack of an appraisal will not lend on it... AND they are still charging me the $775 appraisal fee even though no report is being generated.