Conventional loans - subject to repairs

[Niki Dransfeldt]

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.

That is a really good point. And I do understand an appraiser who is in the mindset of a government loan always wanting to flag those things. Especially because they're generally safety items. Very rarely have I had a lender push back on an appraisal. Usually they tell us the options are deal with it or get a new appraisal and hope you get different results. Appraisals are getting expensive (understandably) so buyers are not real thrilled about paying for a second.

 

[Tiffany Gibbons]

That is a really good point. And I do understand an appraiser who is in the mindset of a government loan always wanting to flag those things. Especially because they're generally safety items. Very rarely have I had a lender push back on an appraisal. Usually they tell us the options are deal with it or get a new appraisal and hope you get different results. Appraisals are getting expensive (understandably) so buyers are not real thrilled about paying for a second.

Why would you not want a safety item fixed? Why a new appraisal at $500 instead of just ponying up the $50 (or whatever) for the pipe?

 

[Niki Dransfeldt]

Why would you not want a safety item fixed? Why a new appraisal at $500 instead of just ponying up the $50 (or whatever) for the pipe?

I'm sorry, I'm not meaning this particular instance. I'm just speaking in general.

Had a house that needed to be painted. It was conventional. Seller refused to paint it. Wouldn't allow buyers on a ladder to do it (liability). And hiring it out was a $10,000 quote. So the buyers opted for a new appraisal. New appraisal did not call for paint in the subject to area, but instead just noted it in the appraisal. That passed through underwriting and we moved forward. I'm referring to situations like this. Not minor repairs.

 

[ucbruin]

Both appraisals for the same lender or different lenders....

 

[Niki Dransfeldt]

Both appraisals for the same lender or different lenders....

Different

 

[ucbruin]

Different

I can understand everyone's confusion....

 

[JTip]

I sure wish they would! All of the lenders I have ever worked with seem just as surprised as me when something comes back from the appraiser. I don't even think the le.ders or processors know what underwriterimg requires.

Sounds like a missed opportunity to separate yourself from the growing crowd of brokers and agents by getting together with a local lender(s) and specialize in financing options for all kinds of properties.

 

[sputnam]

you can go to home depot and buy a made screw in pvc discharge pipe, used to be $5, more now. simple to cut to length and screw in. i'm assuming that is what is needed. the pressure relief valve itself isn't changeable. on a conventional loan it is an anal fix, because like other's have said. it's a used house, you can find lots of minutia repairs. now FHA is a different issue, mostly main big issues, then add on the smalls one if you like.

Pressure relief valves are changeable. You have to drain the water heater to do it. If the complaint is just that the TPR isn't piped to a drain or to the floor... then, adding a pipe is pretty easy... only I'd go copper.

 

[OSU Beavers]

I appreciate that info. And it does make sense. Everyone's trying to pass the buck of liability.

I did not read all 5 pages of responses, but you should know that when real estate sales and refi's slow down, the Middlemen such as Appraisal Management Company (AMC) reviewers with a checklist, lender underwriters and appraiser reviewers tend to increase their repair requirements and report correction requests just to show their bosses that they are staying busy and are still a vital part of the operation.

Just this week I completed an "as is" appraisal for a conventional purchase loan on a remodeled 100 year old house with an unfinished basement. The laundry, furnace and water heater were in the basement and accessed by an internal "L" shaped set of stairs. The bottom flight of stairs did not have a hand rail so I got a command from the AMC to change my report from AS IS to SUBJECT TO due to the safety concern. I asked the AMC "who is telling me to change my report? The lender or an AMC checklist reviewer?" The AMC said that they are calling for the change because they know that the lender will require it.