Appraisal Before Retrofit

[texasrealtor]

Hello and thank you for this forum. I've learned a lot.

I am a REALTOR and have a listing on a manufactured home with land that is located in a rural area in Texas on a dirt road/easement that is almost 2 miles long.

The property is under contract. Buyers getting an FHA loan.

My sellers would like for the appraisal to be done before the $2,100 retrofit. If the appraisal doesn't come back at contract price and/or the appraiser notes the condition of the road to be in poor condition, the deal is dead.

If the appraisal comes back close to contract price (terms re-negotiated) and the road is in good condition, my sellers will do the retrofit.

Will the appraiser have to come out after the retrofit or will it be satisfactory when we provide the lender with an inspection report and certificate from a licensed, certified structural engineer?

Many thanks!

 

[graindart]

Only the lender can answer that question.

 

[Noreen]

What are you classifing as a "retrofit" ( typically the structural changes for handicap occupant). To you mean repairs?

 

[texasrealtor]

What are you classifing as a "retrofit" ( typically the structural changes for handicap occupant). To you mean repairs?

The retrofit is for the manufactured home - FHA required foundation to meet HUD guidelines.

Thanks. Will get the buyers' agent to contact the lender and ask what their underwriter will require.

Appreciate it!

 

[KYLECODY]

I condition every FHA manufactured to have a satisfactory inspection per a structural engineer. I've never been asked to go back or incorporate the structural cert into the report or a final. That probably answers the question..

 

[texasrealtor]

I condition every FHA manufactured to have a satisfactory inspection per a structural engineer. I've never been asked to go back or incorporate the structural cert into the report or a final. That probably answers the question..

Thank you!

 

[CANative]

Kyle is correct. The protocol is to condition the appraisal on certification by a registered professional engineer that the foundation meets the requirements of the HUD Handbook Permanent Foundation Guide for Manufactured Homes. The appraiser doesn't necessarily have to "go back" because the lender can rely on the certification.