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Old 05-08-2010, 05:48 PM
 
Location: alabama
11 posts, read 67,012 times
Reputation: 12

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What constitutes approval from a lender when the appraisal report comes in?

The Facts: conventional loan, 20% down, and lender said the house must be “move-in ready” with “no obvious damage”

Main areas of concern: (are these deal breakers?)
1. mold on basement walls (sheetrock was stupidly placed over concrete walls)
2. rotten/old roll roof (flat top roof on back of garage)

Other areas:
3. Two missing roof shingles
4. Pilot light line leaks (broken) (gas stove)
5. Kitchen door casing/molding rotten in one area
6. Leaking/busted pipes (3 – under bathroom sink, garage, ice maker) (all easily fixable)
7. Basement – dirt has washed in behind the dry-wall of a small area (busted through)
8. Basement – missing tiles (thinking of covering with plastic b/c it’s an insulation issue)
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Old 05-09-2010, 08:38 AM
 
Location: OK
2,764 posts, read 6,720,716 times
Reputation: 1941
Quote:
Originally Posted by pearljamgirl View Post
What constitutes approval from a lender when the appraisal report comes in?

The Facts: conventional loan, 20% down, and lender said the house must be “move-in ready” with “no obvious damage”

Main areas of concern: (are these deal breakers?)
1. mold on basement walls (sheetrock was stupidly placed over concrete walls)
2. rotten/old roll roof (flat top roof on back of garage)

Other areas:
3. Two missing roof shingles
4. Pilot light line leaks (broken) (gas stove)
5. Kitchen door casing/molding rotten in one area
6. Leaking/busted pipes (3 – under bathroom sink, garage, ice maker) (all easily fixable)
7. Basement – dirt has washed in behind the dry-wall of a small area (busted through)
8. Basement – missing tiles (thinking of covering with plastic b/c it’s an insulation issue)
You have received some excellent advise on the other thread. As an appraiser, I would consider these items cosmetic, except for points 1, 2, 4 and 6.

Is the lender you are referring to the owner of this foreclosed on property?
If so, I would imagine they would be willing to negotiate. After all, they are not in the real estate management business.
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Old 05-09-2010, 08:51 AM
 
Location: MID ATLANTIC
8,050 posts, read 19,721,628 times
Reputation: 9095
I have not read the other thread, but would like to comment: Never expect the appraisal to handle what is not addressed in a home inspection (or the lack of one). The lenders, nor the agents, buyers or sellers should attempt influence the outcome or results of an appraisal. The lender (if Direct Endorsement) can ask the appraiser to defend their work.

I have had transactions where the offers were higher (much) higher than list price and in a bidding war, where the expectation was the appraiser would set the final sales price and it backfired. I have seen where the home inspection did not address items the buyers wanted corrected, but had hoped the appraiser would condition the appraisal on those items and it backfired.

When playing games, someone always loses.
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