OK, Fess' up

[Restrain]

The final inspection is for the lender to be able to close. This includes escrowing funds if the home isn't complete. Yes, I do 'final inspections' with the home not complete. Virtually every new home I inspect needs some work as they request the final before closing. That's why the lower part of the 442 is there. I itemize the problems and cost to cure. Everyone's happy.

 

[Ted Martin]

I do the final inspection that they want, I just don't give them the words they want. Some times I do three or four "final" inspections. It really use to bug me, now I figure it their dime and if they want to pay me to do four finals on the property then it's OK with me.

 

[Farm Gal]

As the collection department of the above poster I am here to tell you that he often forgets to send the second, third, or fourth bill :lol: :lol:

And (big softie that he is) it happens most often if the borrower is elderly or just plain clueless. :wink:

 

[Doug Smith SRA]

Tim:

Reference a copy of the new Fannie Mae selling guidelines available on All Regs.

This is a published highlight of guidelines that go into effect this week:

Buy that guy at the bank a cup of coffee. He is doing his homework..

From the highlights of Selling Guide:

"Postponed Improvements (See Chapter 2)

For new construction, we allow certain minor improvements that do not affect livability to be postponed. In the past, we did not specify a limit on the cost of such improvements and we required the property to be appraised subject to completion of the specific improvements. We now require that the cost of any incomplete improvements not represent more than 2 percent of the "as completed" appraised value of the property. The appraisal report must show both the cost of completing the postponed items and the "as completed" value of the property (after completion of the postponed items). Additionally, we require a completion escrow of 120 percent of estimated costs to be established unless the contractor or builder offers a guaranteed "fixed price" contract for completion of the improvements."

-30-

Regards

 

[David C. Johnson]

Nice work, Doug.

dcj

 

[Richard Carlsen]

Not me. I didn't do it.


There has to be a Cert of Occupancy issued and I have to have a copy of it before I'll even go to the house. How valuable is a house if you can't legally live in it. It would be hard to sell I'll bet.

If it is not fully done with such things as minor trim work or a few things here and there, no problem. But if the doors are not hung and the carpet is not laid or the central air is not installed, it is not finished and no Cert of Completion will be forthcoming.

 

[Mike Garrett RAA]

I never see the certificate of occupancy. I inspect the property...if it's finished, it's finished. An exception is landscaping which can sometimes take months to complete...especially here in snow country.

Every once in awhile, the lender will ask for an escrow and close..do I care? NOT!

Have made as many as 3 or 4 inspections before the property is finished. Each time I charge.

VA has changed it's policy here for new construction. The appraiser does not do the final inspection...they assign an inspector. I like that, takes me off the hook...besides $65 isn't enough money to make it worth while.