USDA Rural Housing Appraisal

[takenangel]

We are looking at a home that was built in 1970. We had an inspector tell us three things he thought should be fixed before the appraisal. They are a washer draining into the floor of the basement instead of in the septic, the well pump wiring is joined in the basement without a junction box with exposed wiring from the well wiring to the shut-off box. There is some mold on the floor joist in the basement. The mold is where the basement leaked after the owner died 2 years ago and no one has lived there.The home is in good shape otherwise and is an as-is sale. My question is should these three things be taken care of before the appraisal is done or should we wait til after. They are relatively low cost items, but do not want to spend money unnecessarily until we know it is ours. But if fixing these will help the appraisal we are willing to have these repairs taken care of..Is there a website I can go to find out what this type of loan requires in a home and what may be considered in the appraisal?
Thank you for any help.

 

[hglenbetts]

We are looking at a home that was built in 1970. We had an inspector tell us three things he thought should be fixed before the appraisal. They are a washer draining into the floor of the basement instead of in the septic, the well pump wiring is joined in the basement without a junction box with exposed wiring from the well wiring to the shut-off box. There is some mold on the floor joist in the basement. The mold is where the basement leaked after the owner died 2 years ago and no one has lived there.The home is in good shape otherwise and is an as-is sale. My question is should these three things be taken care of before the appraisal is done or should we wait til after. They are relatively low cost items, but do not want to spend money unnecessarily until we know it is ours. But if fixing these will help the appraisal we are willing to have these repairs taken care of..Is there a website I can go to find out what this type of loan requires in a home and what may be considered in the appraisal?
Thank you for any help.

Do I understand that you are the purchaser, and you wish to make repairs to the property prior to ownership?

Is this a bank property? Will the owners provide written permission for you to provide repairs. What about a hold harmless for unforeseen damages?

What if you make the repairs and the property doesn't close?

If you're applying for an RD mortgage, why not include the repairs into your costs and perform them after close?

I've been selling real estate for 19 years, and have never advised, or permitted a buyer to make repairs prior to close. The seller states "As Is" but try making the repairs by the seller a condition of the purchase. That. I've done a lot.

 

[takenangel]

Purchaser Yes

We are the buyer and have never bought a home before. The seller has signed for the repairs but we were going to pay for them only if they would help the appraisal. We are buying from the owners directly. We have been told the home must be move in ready for the loan to get approved. We fully understand if it does not appraise that our money is gone. That is why I post the question since it is AS-Is Home. They have told us they will not fix any problems, just want it sold. So will these things hurt the appraisal?

 

[berniek]

The appraiser might or might not recommend any or all items to be fixed prior to closing. I'd suggest you ask the seller to pay for any of the items that could stop the closing and you will re-imburse the seller at closing for the items they paid for.

 

[Mr Rex]

Did you have to get a Home Inspection for USDA? If so, USDA will require the repairs to be made prior to closing.

 

[Doug Meyer]

We are the buyer and have never bought a home before. The seller has signed for the repairs but we were going to pay for them only if they would help the appraisal. We are buying from the owners directly. We have been told the home must be move in ready for the loan to get approved. We fully understand if it does not appraise that our money is gone. That is why I post the question since it is AS-Is Home. They have told us they will not fix any problems, just want it sold. So will these things hurt the appraisal?

If you are a first time buyer, I would recommend you see a Realtor or a licensed professional to help you. I am a professional with over 34+ years in the business and I would always work with a Realtor or other professional when I by houses. When folks that are new try to do these things for themselves, they typically get "stung". Since the owner is trying to save the "commission" then he should pitch in for the repairs. I would also NEVER sign a deal that I would loose my money if the home did not close.....

 

[takenangel]

Going a different way.

We did an inspection and we know what he recommends. We have not signed a contract yet and the contract is going to be contingent upon the appraisal and if it appraises then we will meet the lender requirements on the repairs. We already know the cost of repairs. I don't know what we thinking , but at least we got somewhat smart before to late. I hope this is correct and we need to save the realtor fees as well. If there is anything anyone can add to help with advice it is all appreciated. :new_newbie:

 

[Doug Meyer]

We did an inspection and we know what he recommends. We have not signed a contract yet and the contract is going to be contingent upon the appraisal and if it appraises then we will meet the lender requirements on the repairs. We already know the cost of repairs. I don't know what we thinking , but at least we got somewhat smart before to late. I hope this is correct and we need to save the realtor fees as well. If there is anything anyone can add to help with advice it is all appreciated. :new_newbie:

Everyone want to save the Realtor fee. Realtors earn their fees (the good ones) and you "takenangel" have much to learn. Hire yourself a Realtor as a buyers agent to guide you through this transaction.