Commercial Refinance question: building valuation with a broken boiler.
Hello,
I’m in the process of refinancing my mortgage on my building. On Monday someone is coming to do an inspection for the valuation. Here is my question: a few winters ago my oil furnace died. I’ve got 2 Mitsubishi split units that provide enough heat. So I never replaced the furnace. I also had the oil tank removed for more space. Will this effect my property valuation?
Thanks in advance.
[{"id": "gcytgr9", "text": "I am not super experienced with this but I have 4 smaller industrial properties.  I don't think the appraiser will care too much.  If you have \"enough\" heat, that should be good enough.  I think the main way you'd run into problems there is if you had no heat at all.  I think what you have will be okay!", "replies": [{"id": "gcz3wkv", "text": "Thank you!", "replies": [], "depth": 2}, {"id": "gd5goxx", "text": "This!", "replies": [], "depth": 2}], "depth": 1}, {"id": "gcz18d8", "text": "No you should be fine as long they provide enough heat.", "replies": [{"id": "gcz3x60", "text": "Thanks!", "replies": [], "depth": 2}], "depth": 1}, {"id": "gd0lhe7", "text": "The only thing they might consider is the removal cost if the broken furnace is still there. If the furnace costs $10,000 they knight deduct that off the final value as deferred maintenance.", "replies": [], "depth": 1}, {"id": "gd0nezz", "text": "It will get mentioned as delayed maintenance, but it shouldn\u2019t materially affect the value.  If you pull out cash to make the repair, the appraiser will factor that into the appraisal", "replies": [{"id": "gd2xwh4", "text": "Thanks", "replies": [], "depth": 2}], "depth": 1}]