topic Appraisal-list of repairs in Mortgage Loans

Appraisal-list of repairs

Anonymous — Thu, 16 Apr 2015 12:07:20 GMT

Well.....the house appraised. Barely but it appraised. I was not aware that appraisers could give lists of repairs but she did. Apparently the main sewer line in the basement started leaking. Not sure what to think about this. The seller is having to replace 2 sewer lines per inspection and appraisal. Should I be happy it's being done before I get the house or scared the house is going to have plumbing problems???? I do work for a General Contractor with access to 100's of subcontractors.

Also, the selling price was $122,500.00. The appraisal was $123,000.00. Will the underwriter have issue with this? I say it appraised but not sure what the guidelines are on appraisals. Do they have to appraise for a certain amount over the selling price or can it be dead on????

Re: Appraisal-list of repairs

StartingOver10 — Thu, 16 Apr 2015 12:29:23 GMT

It can be dead on.
Yes, a repair list is cited in appraisals if the appraiser deems the property to have health and safety condition Issues. These items need to be repaired prior to closing and reinspected by the appraiser.

Re: Appraisal-list of repairs

Anonymous — Thu, 16 Apr 2015 12:42:28 GMT

Will this re-inspection cost me more money??? Is it a blessing this happened now? Should I run away???lol

Re: Appraisal-list of repairs

StartingOver10 — Thu, 16 Apr 2015 13:44:13 GMT

Yes, the re inspection is an additional cost to you, but you can negotiate it so the seller pays it. You don't usually see the fee until closing so ask your loan officer for the amount. If you are getting a VA loan you might not be permitted to pay the fee, the VA is good that way. As to running from the deal, it really is your call. You may want to have a serious discussion with your agent and the repairman to get a full picture of what these plumbing issues are in the house.

Re: Appraisal-list of repairs

Anonymous — Thu, 16 Apr 2015 14:33:51 GMT

I'm going FHA so I was thinking that maybe if the repairs are completed before the FHA inspection I won't need the appraisor to go back out. Is this possible? She doesn't have re-inspection on her report that I can find. She just has that this subject will pass FHA inspection upon the following repairs being completed. Ugh!! I don't know.

Re: Appraisal-list of repairs

StartingOver10 — Thu, 16 Apr 2015 15:26:43 GMT

@Anonymous wrote:
I'm going FHA so I was thinking that maybe if the repairs are completed before the FHA inspection I won't need the appraisor to go back out. Is this possible? She doesn't have re-inspection on her report that I can find. She just has that this subject will pass FHA inspection upon the following repairs being completed. Ugh!! I don't know.

^^^This means the appraiser has to come re-inspect. For FHA the appraiser does more than a walk through and measurements and determination of value. The appraiser does a little 'mini' inspection for health and safety issues and if any of those issues are listed in the appraisal as needing to be repaired, then once the repairs are completed the appraiser has to come back and re-inspect to make sure the repairs were completed properly.

The whole house inspection you are referring to is not submitted to the lender. Some inspections are - like the WDO report (also called 'termite inspection') and BacT report for wells and the septic report if applicable.

The whole house inspection report is supposed to be done right away within your contracted inspection period so you can see the current condition of the property. The inspection is much more in depth (or should be more in depth) than the appraiser's notations about health and safety. The purpose of the inspection is to pick up on those items you miss during your initial viewing(s) of the property before you made the offer. No one walks through as thoroughly as a professional inspector or team of inspectors. At that point, once you have a better picture of the actual condition of the property you can decide if it is still worth what you offered or go back in and re-negotiate or walk away. It is for your protection. The inspection and sellers' disclosures are very critical to determining the actual condition of the property prior to your purchase so you can make an informed decision.

Re: Appraisal-list of repairs

Anonymous — Thu, 16 Apr 2015 15:40:02 GMT

StartingOver advised-

"You may want to have a serious discussion with your agent and the repairman to get a full picture of what these plumbing issues are in the house. "

You ain't kiddin.

Re: Appraisal-list of repairs

Anonymous — Thu, 16 Apr 2015 17:31:03 GMT

I just spoke with my plumber and he will do an inspection for me once all repairs are made. I think this would satisfy me. Sure hate to be right at the end of this process only to have to back out! Ugh!

Re: Appraisal-list of repairs

frugalQ — Thu, 16 Apr 2015 17:46:20 GMT

frustrated, look at it this way: at least you are finding the problems BEFORE they become your problem to fix. that was the main reason why we chose to go new build route. i just didn't want to have to deal with other people's problems after we bought.

Re: Appraisal-list of repairs

StartingOver10 — Thu, 16 Apr 2015 18:35:32 GMT

@Anonymous wrote:
I just spoke with my plumber and he will do an inspection for me once all repairs are made. I think this would satisfy me. Sure hate to be right at the end of this process only to have to back out! Ugh!

That is a great idea - you know your plumber and his expertise so he can tell you the real deal.

You may want to have him take a look at the plumbing problem or the plumbing report showing the issue prior to it's repair so he has complete knowledge and can guide you appropriately. I say this because some sellers will have it fixed the right way and others will take shortcuts.

Re: Appraisal-list of repairs

Anonymous — Thu, 16 Apr 2015 18:47:35 GMT

@StartingOver10 wrote:
@Anonymous wrote:
I just spoke with my plumber and he will do an inspection for me once all repairs are made. I think this would satisfy me. Sure hate to be right at the end of this process only to have to back out! Ugh!
That is a great idea - you know your plumber and his expertise so he can tell you the real deal.

You may want to have him take a look at the plumbing problem or the plumbing report showing the issue prior to it's repair so he has complete knowledge and can guide you appropriately. I say this because some sellers will have it fixed the right way and others will take shortcuts.

I showed him the report. He gave me all kinds of ideas and scenarios. I really shouldn't complain too much. Working for a GC makes huge repairs for some people really not so huge for me. There is nothing my boss won't do for me if I need it. Greatest man I know! I just hate to seem needy. Always gotta try and get it done all on my own first.lol

Re: Appraisal-list of repairs

Creditobsessed12 — Thu, 16 Apr 2015 19:39:06 GMT

@Anonymous wrote:
Will this re-inspection cost me more money??? Is it a blessing this happened now? Should I run away???lol

It depends on your appriser. My appraiser was nice and the repairs were also minor and she is allowing me to send her pictures of the repairs. I guess YMVV. But if she had to go back it would have been 200 dollars more. It sucks and I would have been responsible for it.

Re: Appraisal-list of repairs

DallasLoanGuy — Sat, 18 Apr 2015 02:12:48 GMT

i would absolutely demand to talk to the repairman. ask what they see in there.

YOUR inspector should have provided all off the insight you need though

Re: Appraisal-list of repairs

Anonymous — Thu, 09 Jul 2015 20:38:59 GMT

Do they only re-inspect the parts the needed repairing? I have an appraisar coming back tomorrow to check on the repairs (peeling paint)

Re: Appraisal-list of repairs

StartingOver10 — Thu, 09 Jul 2015 21:38:25 GMT

@Anonymous wrote:
Do they only re-inspect the parts the needed repairing? I have an appraisar coming back tomorrow to check on the repairs (peeling paint)

Yes, the appraiser goes back to each and every item on the list of required repairs but does not do another inspection. S/he is checking to make sure the repairs are completed correctly.

Re: Appraisal-list of repairs

Anonymous — Fri, 10 Jul 2015 13:55:31 GMT

Thank you!! The lender also noted a cosmetic repair that the initial appraisal noted as cosmetic. That should not be required as a repair for FHA shoud it?

Re: Appraisal-list of repairs

wendlan — Fri, 10 Jul 2015 16:59:18 GMT

My reinspection for fha costed $110...they rechecked the items on the list..they have a thing for peeling paint..fha I mean..so if the cosmetic work included and peeling paint it has to be done