Full home inspection required

[Katie Cosner]

I have heard of lenders asking for copies of home inspections & various other certs not only for FHA & VA, but also for Conv loans, but never Appraisers. Unlike say, a well & septic, or WDI, a Gen HI is not mandatory for any lender/underwriting requirement i've ever come across.

You also seem to be aware of the fact that it is not your report to supply to the Appraiser, or anyone else for that matter, without your Buyer's permission. If the HI did not recommend anything to be done such as repairs, or getting a foundation guy out for an additional insp, and neither did the Appraiser, apparently, try following up with the Buyer's lender on this.

 

[Michigan CG]

The appraiser overstepped his power. He cannot require a home inspection.

However what I find troubling is that you, representing the buyer, are hesitant to send the inspection. Is it not your job to act in the best interest of your client? If there is nothing bad in the inspection then there is nothing to hide.

If there is something bad in the inspection then don't you think it is in the best interest of YOUR CLIENT to have the appraiser privy to the information?

 

[Michigan CG]

AND, If I know there is a home inspection I request a copy of it for my file. If someone does not provide it I state in the report:

A home inspection was completed although I was not provided with that inspection report after requesting it.

All I am doing is telling the truth. It is called CYA. In the last few years there is a new sport, it is called suing appraisers. Might be an Olympic sport in 2016 since it is becoming so popular.

 

[OSU Beavers]

Realtors BS me all of the time while I am inspecting "Oh don't worry about that crack, the seller has a Professional Structural Engineers Report that states everything is fine". Ok great, send me a copy. Three days and four requests later and still nothing from the Realtor, so my report gets issued "subject to" the above mentioned report.

The next thing I hear is ranting from the Realtor "OMG how can the appraiser call for that?" What type of inspection did the seller really have? A standard Pest & Dryrot inspection! Was she puffing, ignorant or just plain lying to me? We will never know.

The moral for Realtors: Don't say something unless you are prepared to back it up.

 

[SANDY]

Realtors BS me all of the time while I am inspecting "Oh don't worry about that crack, the seller has a Professional Structural Engineers Report that states everything is fine". Ok great, send me a copy. Three days and four requests later and still nothing from the Realtor, so my report gets issued "subject to" the above mentioned report.

The next thing I hear is ranting from the Realtor "OMG how can the appraiser call for that?" What type of inspection did the seller really have? A standard Pest & Dryrot inspection! Was she puffing, ignorant or just plain lying to me? We will never know.

The moral for Realtors: Don't say something unless you are prepared to back it up.

Now there is a good post!!!!

 

[FL REBroker]

Remember everyone - this is not mine to give. I am sure the lender will ask for an inspection.

My question is more of a general - are FHA appraisers asking for general home inspection reports to do the appraisal. This one said he wants it on all transactions.

The reason this is so concerning to me is I have had many cases over the years where a buyer accidentally will send the full inspection report to the insurance company. In every case the insurance company denied coverage. They had to go with another agent. They say too much information. It makes me wonder what will happen if this becomes the standard in appraising. And will the appraiser send the inspection into the lender or is he just reviewing it for his personal knowledge? Will a lender lend with any one deficency - lets say -weatherstripping is torn on door. Common here in Fl - or will they require it to be fixed.
If this is the case, then the only home a buyer has a chance at is a traditional sale since Shortsales and REO's will not fix one single item.
Again, in all my years I have never even had a traditional sale report come back perfect.
I can see an underwriter at the lender requiring everything to be fixed. They are not a professional in home construction so the will not know what needs to be done.
My point in all of this is, if there is a concern that an appraiser has I would think he could condition for an expert in that area to eliminate concern - not a general home inspector who makes everyone sign a waiver that they are not lic'd in plumbing,electrical,construction,etc.
As I said in my original post I am just trying to get some thoughts.

 

[Calvin the Airedale]

The FHA appraiser has the authority to order inspections for a variety of purposes. A general home inspection though? No.

Still, if one exists, I ask for it and if denied me for any reason I note as much in the report.

I asked for one not long ago (to avoid ordering a more extensive structural inspection) and the report I received had been redacted in just the sections in which I was interested.

The result: a $500 report was required of a structural engineer to determine the cause, integrity and cost to cure of a structural defect.

I may not have ordered the engineer's report had the home inspector provided a sufficiently detailed summary of the problem. (Which apparently he had but someone didn't want me to see, as I came to find after the fact.)

 

[ctapraser]

AND, If I know there is a home inspection I request a copy of it for my file. If someone does not provide it I state in the report:

A home inspection was completed although I was not provided with that inspection report after requesting it.

All I am doing is telling the truth. It is called CYA. In the last few years there is a new sport, it is called suing appraisers. Might be an Olympic sport in 2016 since it is becoming so popular.

I think any appraiser would do this, if I know it was done and you will not let me see it.........kind of makes me wonder whats behind the gobs of caulking the appraiser noted...?

 

[SANDY]

Remember everyone - this is not mine to give. I am sure the lender will ask for an inspection.

My question is more of a general - are FHA appraisers asking for general home inspection reports to do the appraisal. This one said he wants it on all transactions.

The reason this is so concerning to me is I have had many cases over the years where a buyer accidentally will send the full inspection report to the insurance company. In every case the insurance company denied coverage. They had to go with another agent. They say too much information. It makes me wonder what will happen if this becomes the standard in appraising. And will the appraiser send the inspection into the lender or is he just reviewing it for his personal knowledge? Will a lender lend with any one deficency - lets say -weatherstripping is torn on door. Common here in Fl - or will they require it to be fixed.
If this is the case, then the only home a buyer has a chance at is a traditional sale since Shortsales and REO's will not fix one single item.
Again, in all my years I have never even had a traditional sale report come back perfect.
I can see an underwriter at the lender requiring everything to be fixed. They are not a professional in home construction so the will not know what needs to be done.
My point in all of this is, if there is a concern that an appraiser has I would think he could condition for an expert in that area to eliminate concern - not a general home inspector who makes everyone sign a waiver that they are not lic'd in plumbing,electrical,construction,etc.
As I said in my original post I am just trying to get some thoughts.

Think of it this way for a minute. If it was your money being lent would you want the appraiser to have access to the inspection report?
You are overly focused on what some guvnmnt agency requires or doesn't require instead of what the right thing to do is. All of your comments are concerns about how or why the deal might not close if all the information about the condition of the property is revealed.
Nice ethics!

 

[FL REBroker]

Again guys and gals - I am agreeing with you - if there is an issue or concern it should absolutely be evaluated. By the individual professional that can honestly answer the question. ex: request a roof inspection, engineers report, wdo/termite ... any of these type of reports.

Sandy please - don't attack me - I really care about the buyers ( all of them ) more than you think. I am not about closing a deal to make a check. I sit and tell clients the good the bad and the ugly about every thing I know of to make sure they know what buying a home these days can be like. You would not believe how many times I have talked a buyer out of making an offer on a home because of the repair issues I can spot with my uneducated/untrained eye. Most people are so tight on money they need to know all the pitfalls ahead of them. They don't have $1000 to spend between inspections and appraisals on a home.
This is why I brought this question up in the first place - not to be attacked, but to inform my future buyers of what they can expect. Please take this question away from the original deal - what is meant to be is meant to be with that one. I cant force the buyer to do anything and at this point we will just sit back and wait on underwriting.

A question for you Sandy- if you were buying a home and had a full inspection report done would you send it to your insurance agent ? Yes or no ? why?