Property Appraisal - Conditional Repairs

4 Replies

Hi I'm in the process of obtaining a loan to purchase a home in Texas that has a tight time frame to close within (foreclosure home). The home is in great condition, but I've been told if the appraiser comes back with any required repairs or conditions there likely won't be enough time to complete the loan due to the reviews required and time to get an appraiser back out. It is a conventional/Fannie Mae loan.

I continue to read about the 3 S's appraisers use, but am unsure about a porch column that has some rotted base trim and one side board too, the structural integrity of the column still appears intact, see attached photo. Would something like this cause an appraiser to require this column be repaired as condition of the appraisal?

Additionally, there is an unpermitted small storage addition for lawn mowers and stuff on the side of the home (approx 5ft wide by 2feet deep) that was built using identical materials of the property so it blends in and looks of professional quality. What issues might the addition cause when the appraiser comes?

The home is being purchased at a price far enough below market value, so the home will easily appraise above the loan amount based on neighborhood comps.

Since you are on a tight timeline, my advice would be to go ahead and address the issues before the appraisal is done.  Even though you are the buyer I would spend a couple of hundred dollars to get the deal done

@Grant K. why aren't you out there right now with a tape measure, so you can get to work on replacing the exterior of that column so it looks repaired. Repair it for real after you own it.

If it looks structurally right, even if obvious that someone just did it and didn't make it pretty at all, appraisers will generally remain silent. They have plausible deniability, because "how could I have known it was just a quick cosmetic hack by someone that isn't a licensed contractor? It LOOKED professionally done, so I could only at the time assume the structural integrity, etc, was evaluated  by whomever did it."

If it looks like it does now, an appraiser could call for it to be professionally repaired by a licensed bla bla bla bla and structural engineer's opinion yada yada yada yada. He has no plausible deniability, so now you have to waste a bunch of money on a home that you do not yet own... or you lose the house. 

Waddle your penguin self out there and fix it now.

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