Friday, August 4, 2017

Proactively avoiding appraisal conditions issues where I can...

I have written in the past about repairs required by appraisers as a condition of funding a loan on a property, and thought I would post this with a slightly different spin: pro-active repairs before the appraiser has the chance to require them!

I keep my eyes open for red flags on properties that I am listing or where I am representing this case, on a property one of my buyers is in contract to purchase, I noticed an electrical outlet without a cover plate, and a hole in the wall where some speaker wiring was popping out. These were both in the little alcove where a television would likely be.

So today, prior to the appraisal which should happen next week, I spent $1.28 and went by the property and installed two cover plates.

My buyer is using a FHA loan which comes with a heightened standard for condition of the property, and an appraiser would definitely call this condition out to be repaired. When an appraiser calls out repair items, that also means they have to revisit the property once the repairs have been completed to visually verify the repairs are done. The fee for the 2nd visit is $150. So for $1.28 and an extra trip to the house, I likely saved my client the $150 re-inspection fee.

It's wise if you are a buyer or seller to address these issues up front so they are non-issues later.

No comments: