Conventional loans - subject to repairs

[J Grant]

You're definitely right on that. I have come to the conclusion that appraisers have certain hot button issues. For whatever reason the TPR valve happens to be this appraisers hot button. I just wish there was a way to keep up with it so I could get ahead of it, but there's not as it's ever changing. And I don't know anything about radon in regards to granite countertops. I don't think I want to know. Lol

Talk to your sellers ahead of time that if any issues come up they be prepared to repair at a reasonable cost. Qualify your buyers to have a few dollars to cover a cost. Or cover it out of your commission. Making the deal work is your problem to solve, it is not our problem to solve. We are asked to provide information to our client which is the lender.

 

[Niki Dransfeldt]

Making the deal work is your problem to solve, it is not our problem to solve.

Yes! Exactly! This is the main point of this entire thread. I'm trying to get a handle on all of the small things that are called out on appraisal so I can get ahead of them. But I've learned the appraiser will blame the lender and lenders blame the appraisers.

There's also a difference between pointing something out on appraisal so a lender is aware versus making it 'subject to.'

 

[J Grant]

Yes! Exactly! This is the main point of this entire thread. I'm trying to get a handle on all of the small things that are called out on appraisal so I can get ahead of them. But I've learned the appraiser will blame the lender and lenders blame the appraisers.

There's also a difference between pointing something out on appraisal so a lender is aware versus making it 'subject to.'

Making it subject to can be part of the appraisal development, and it is not your call to make and people are being patient here , but we have no obligation to justify anything about the appraisal to a RE agent who is not our client,

RE agents want to bring marginally qualified buyers to a deal who lack one more $ to make a repair and the RE agent does not want to upset a seller that they may have to make a repair and the RE agent does not want to pay the repair out of their comission ( though some end up doing it ). What makes any of that our problem?

 

[Niki Dransfeldt]

Making it subject to can be part of the appraisal development, and it is not your call to make and people are being patient here , but we have no obligation to justify anything about the appraisal to a RE agent who is not our client,

RE agents want to bring marginally qualified buyers to a deal who lack one more $ to make a repair and the RE agent does not want to upset a seller that they may have to make a repair and the RE agent does not want to pay the repair out of their comission ( though some end up doing it ). What makes any of that our problem?

Take a breath, you seem to be taking this conversation personally. I've never once stated this was an appraiser's problem. I'm just here to educate myself to make a transaction smoother for my clients.

I do not qualify anyone. That is a lender's job.

 

[ucbruin]

Do your buyers pay for a home inspection....

 

[Vermonter]

There's also a difference between pointing something out on appraisal so a lender is aware versus making it 'subject to.'

It's going to be lender specific. I have one credit union that pretty much requires every loan to meet HUD health and safety MPRs. If not the report is conditioned subject to repair. Local agents know the deal when they find out that's where the financing is coming from.

I think you're probably dealing with a strict appraiser and a clueless lender

 

[Niki Dransfeldt]

Do your buyers pay for a home inspection....

Yes, if they choose to. I encourage it, but it is not my decision.

 

[Niki Dransfeldt]

It's going to be lender specific. I have one credit union that pretty much requires every loan to meet HUD health and safety MPRs. If not the report is conditioned subject to repair. Local agents know the deal when they find out that's where the financing is coming from.

I think you're probably dealing with a strict appraiser and a clueless lender

This is good information, thank you! I really had no idea the lenders sometimes had specific requirements.

And I think you're right on the second part. Thanks!

 

[ucbruin]

Silly buyers and sellers....
Surprised near the end of the process....
Silly buyers and sellers....

 

[Vermonter]

There is also the possibility that the appraiser sets a "minimum standard" for their inspection and reporting. I know some appraisers that do majority VA work and basically any assignment they get is inspected and reported according to VA requirements. Some lenders will push back, but most don't so he keeps doing it.