I have a house under contract with the intention of renting it out. The current owner had been renting this house, but had to evict the last tenants. As sometimes occurs there is some damage that needs to be repaired. The contract I have for the house is an "AS-IS" contract. I had the house inspected prior to having the bank appraise it (I was more interested to see if I had missed needed repairs than that the value would not be above what I was paying). The inspection went as I expected, and the issues/repairs needed were in line with what I saw myself.
After that process I paid for the lender to order the appraisal. Here is where things may be going badly for me. The appraiser indicates the following:
"Subject To:
This report is based on the hypothetical condition that the subjects unfinished constructionsd items are complete in a workmanship like manor. The use of hypotheical condition may affect assignment resutls.
Items to be finish include:
Baseboard throughout the home
Replace Missing Flooring
Finish installation of double doors to bedroom
Repair Damaged/Unfinished Drywall
Replace missing closet doors
Install Electrical face plates adn A/C vents
The subject is currently in C5 condition by definition. Once completed the subject will be in C3 condition."
I have read the definitions provided for C3/C4/C5 and I'm trying to understand the C5 rating. Some of the subject to repairs seem petty (electrical face plates and A/C vents - all in a pile - present and accounted for; Baseboard was pulled out of the 3 bedrooms for painting and replacement - cosmetic repairs; Replace missing Closet doors - all are in the house just not hanging in the expected place).
Is the fact that 6 floor tiles (matching extra tiles are in the house and just need to be put in place), a 2x3' sheet rock repair needs to be complete, and sheet rock and trim needs to be installed around double doors to an extra room enough to drop the condition from a C3 to a C5? That seems like a big drop, and the C5 has the loan in jeopardy.
Thoughts?
After that process I paid for the lender to order the appraisal. Here is where things may be going badly for me. The appraiser indicates the following:
"Subject To:
This report is based on the hypothetical condition that the subjects unfinished constructionsd items are complete in a workmanship like manor. The use of hypotheical condition may affect assignment resutls.
Items to be finish include:
Baseboard throughout the home
Replace Missing Flooring
Finish installation of double doors to bedroom
Repair Damaged/Unfinished Drywall
Replace missing closet doors
Install Electrical face plates adn A/C vents
The subject is currently in C5 condition by definition. Once completed the subject will be in C3 condition."
I have read the definitions provided for C3/C4/C5 and I'm trying to understand the C5 rating. Some of the subject to repairs seem petty (electrical face plates and A/C vents - all in a pile - present and accounted for; Baseboard was pulled out of the 3 bedrooms for painting and replacement - cosmetic repairs; Replace missing Closet doors - all are in the house just not hanging in the expected place).
Is the fact that 6 floor tiles (matching extra tiles are in the house and just need to be put in place), a 2x3' sheet rock repair needs to be complete, and sheet rock and trim needs to be installed around double doors to an extra room enough to drop the condition from a C3 to a C5? That seems like a big drop, and the C5 has the loan in jeopardy.
Thoughts?