Full home inspection required

[FL REBroker]

Thoughts please ... I am a real estate broker and I always recommend a buyer have a home inspection.
I just had a situation where an FHA appraiser called me and asked my to send him a copy of the full home inspection report on a home. I represent the buyer in this case. I explained to him that was not my property to send out and I told him I was surprised at the request. I had never been asked for this in the past ( I do a lot of business - always representing the buyer) He stated that he is now asking for it on every file.
The buyer did not send him the report.
The appraiser then made this comment on appraisal:
A SATISFACTORY FULL HOME INSPECTION IS REQUIRED. THIS IS REQUIRED BECAUSE THE APPRAISER NOTED THAT THE FULL
EXTERIOR OF THE SUBJECT WAS WOOD FRAME AND SEVERAL AREAS HAD EXTENSIVE CAULKING. SECTIONS OF THE WOOD DECK
ARE GROUND LEVEL AND MUST BE INSPECTED. THE BUYER HAD A HOME INSPECTION BUT REFUSED TO PROVIDE THIS
INSPECTION. THE SELLING AGENT ALSO STATED THAT HOME INSPECTIONS WERE NOT NECESSARY FOR THE APPRAISER
I am a little confused .. I would understand if he was requiring a WDO to be completed or even a lic'd GC to determine issue with exterior wood ... but what the heck ?

 

[Thomas Fiehler]

I would suggest you ask the appraiser where that requirement is in the HUD manual so you can provide your client a copy of it (it's NOT). Sounds like a new appraiser or one who lacks confidence in his/her work.

 

[NORTON]

Now that u received this request for information, are u going to provide the inspection report to the appraiser? if not, why? what logical explanation do any parties have to deny the appraiser property information? and if you feel strongly against the appraiser's request, then you shouldn't have a problem when you and other parties are named in the report as denying access to such information. I don't think the debate on this issue is whether the information is required or not, but if asked, why not provide it? what to brokers / agents fear by revealing the results of the inspection report?

 

[residentialguy]

I would call HUD and ask to speak to one of their appraisers at the HOC. That is not a HUD requirement.

 

[NORTON]

if HUD doesn't require it, does that mean anything an appraiser can ask for can only be what HUD requires? The language in the appraisal doesn't say that HUD requires it, so how can HUD's response be critical? Do we think that HUD will sanction an appraiser for requesting what's perceived above the normal course of business? just askin...

 

[Delta85]

I don't see a problem with the appraiser asking for the report. It's not a HUD requirement though. I also do not see anything wrong with the appraiser indicating in the report that a request was made for a copy but that request was refused by so and so. I would not make the report subject to seeing a copy, but detailing in the report efforts at due diligence and who refused to cooperate is not stepping over the line.

 

[residentialguy]

If you had an inspection, ask for permission to show it to the appraiser so you can get this thing closed....unless you're hiding something that was found.

 

[SANDY]

If you are representing the buyer's interest and the buyer paid for a home inspection, it would be in the buyer's best interest for the appraiser to have the inspection report. If you didn't feel you had the authority to provide it, you should have at least forwarded the appraiser's request for such to the buyer and explained to the buyer that the more information that the appraiser has available, the more accurate the appraisal.
I fail to understand how you can say that you represented the buyer in this instance unless you are/were unaware that this type of information can substantially affect the valuation opinion of the appraiser.

But its always about the commission realtors might lose if the inspection report would lower the value. Based upon the circumstances I would not say that you "represent" the buyer unless you are acting as a buyer's agent.

There is already widespread misconception amongst the general public that realtors represent them.

In fact, in a more perfect world it should be required that every home sold be subject to a home inspection by a qualified home inspector and the report be provided to the appraiser.

 

[Randolph Kinney]

Thoughts please ... I am a real estate broker and I always recommend a buyer have a home inspection.
I just had a situation where an FHA appraiser called me and asked my to send him a copy of the full home inspection report on a home. I represent the buyer in this case. I explained to him that was not my property to send out and I told him I was surprised at the request. I had never been asked for this in the past ( I do a lot of business - always representing the buyer) He stated that he is now asking for it on every file.
The buyer did not send him the report.
The appraiser then made this comment on appraisal:
A SATISFACTORY FULL HOME INSPECTION IS REQUIRED. THIS IS REQUIRED BECAUSE THE APPRAISER NOTED THAT THE FULL
EXTERIOR OF THE SUBJECT WAS WOOD FRAME AND SEVERAL AREAS HAD EXTENSIVE CAULKING. SECTIONS OF THE WOOD DECK
ARE GROUND LEVEL AND MUST BE INSPECTED. THE BUYER HAD A HOME INSPECTION BUT REFUSED TO PROVIDE THIS
INSPECTION. THE SELLING AGENT ALSO STATED THAT HOME INSPECTIONS WERE NOT NECESSARY FOR THE APPRAISER
I am a little confused .. I would understand if he was requiring a WDO to be completed or even a lic'd GC to determine issue with exterior wood ... but what the heck ?

FHA has an inspection protocol for the appraiser to determine if the property meets minimum HUD requirements. These involve health, safety, soundness and other issues related to plumbing, mechanical and electrical.

The appraiser can make the appraised value "subject to": repairs or alteration, or inspection.

So the appraiser has called out items in his appraisal report that he determines require a home inspection to verify the nature of the repair that was done and its current condition.

The lender and underwriter will make the call; you may be getting a stipulation that the loan approval must have a satisfactory inspection as called out by the appraiser. The appraiser will be required to perform a satisfactory completion report by the lender to see if all was done and the results are satisfactory so that this condition of the loan can be cleared.

Sometimes it is better to cooperate. Now, your seller will have to pay for a home inspection report or, if the buyer's home inspection report can be used, the buyer can supply that.

Raising the red flag of suspicion brings consequences.

 

[residentialguy]

Good post, Randolph