Utilities During Inspection

[brightside]

On a conventional loan, do the utilities need to be turned on during the inspection? A home that I am appraising for a conventional loan has private gas (propane tank) that fuels the water heater, stove and central heat. The propane tank was empty and therefore these systems could not be checked. With HUD, I would have conditioned the appraisal. Would the same apply for Fannie Mae? Also, community gas is available at the street, but the home predates the availabilty of the community gas and never converted.

 

[Mountain Man]

On a conventional loan, do the utilities need to be turned on during the inspection?

In general no. But, it could be an additional requirement of the lender added to the appraisal scope of work to verify the utilities are on and working as normal.

 

[Lloyd Bonafide]

It never used to happen to me with a conventional loan, but some clients today do want to know if the utilities are on in a vacant house.

 

[Kenneth Chase]

It never used to happen to me with a conventional loan, but some clients today do want to know if the utilities are on in a vacant house.

I just got conditioned (the review appraiser AL needed something to find) on a conventional loan refinance in an 8 year old high end development to state: "ALL utilities have been checked and are functioning" I guess I must have missed it in the 6 page scope of work, engagement letter. (Wish they would bold and date the changes they make to the SOW and engagement letter).

I expect sooner than later we will have to describe each seperate utilities overall operational condition at time of inspection. i.e. water pressure in upper level bathroom tends to be lower than ground floor, no discernable effect on overall value.

Oh, and get this...the instructions indicate that the appraiser should make sure the borrower will ensure the utilities will be on and functioning at time of inspection.

Please have the CAC/FAU/Lights and attic fans on full blast when I arrive.

 

[Noreen]

On a conventional loan, do the utilities need to be turned on during the inspection? A home that I am appraising for a conventional loan has private gas (propane tank) that fuels the water heater, stove and central heat. The propane tank was empty and therefore these systems could not be checked. With HUD, I would have conditioned the appraisal. Would the same apply for Fannie Mae? Also, community gas is available at the street, but the home predates the availabilty of the community gas and never converted.

How about this little twist, in New England, if I have to certify that the subject structure is "safe, sound and habitable" it must be heated (in order to meet habitability standard, or freeze your behind off). Therefore, yes, even on a conventional loan, I condition for it.

 

[Kenneth Chase]

How about this little twist, in New England, if I have to certify that the subject structure is "safe, sound and habitable" it must be heated (in order to meet habitability standard, or freeze your behind off). Therefore, yes, even on a conventional loan, I condition for it.

Here in San Diego the average temp is about 68 degrees, and most people live in moderate temperature zones (with exceptions of low lying or high elevation areas) and tend not to use the heat. On FHA's I always condition for utilities that cannot be engaged at time of inspection. On more than one occassion having the FAU turned on resulted in smelling up the entire house with blow out from the vents after years of non-use. On older homes asking for the FAU to be up and running can lead to some interesting surprises in this area.

 

[Tom Woolford]

Like the house that had been vacant for a while and there just happened to be a dead mouse trapped in the heating coils when they engaged. What a stink.

 

[Couch Potato]

I just got conditioned (the review appraiser AL needed something to find) on a conventional loan refinance in an 8 year old high end development to state: "ALL utilities have been checked and are functioning" I guess I must have missed it in the 6 page scope of work, engagement letter. (Wish they would bold and date the changes they make to the SOW and engagement letter).

I expect sooner than later we will have to describe each seperate utilities overall operational condition at time of inspection. i.e. water pressure in upper level bathroom tends to be lower than ground floor, no discernable effect on overall value.

Oh, and get this...the instructions indicate that the appraiser should make sure the borrower will ensure the utilities will be on and functioning at time of inspection.

Please have the CAC/FAU/Lights and attic fans on full blast when I arrive.

We wish clients would read the report, and they wish we would read the order. I don't see were you have any room to complain. If you didn't read what you agreed to provide and/or didn't negotiate an appropriate fee, the only person at fault is the one you see in the mirror.

On a conventional loan, do the utilities need to be turned on during the inspection? A home that I am appraising for a conventional loan has private gas (propane tank) that fuels the water heater, stove and central heat. The propane tank was empty and therefore these systems could not be checked. With HUD, I would have conditioned the appraisal. Would the same apply for Fannie Mae? Also, community gas is available at the street, but the home predates the availabilty of the community gas and never converted.

The best thing to do is ask your client about their needs. If the utilities are not on, you need to make sure you make it clear in your report. Don't make any unsupported claims about the condition of any systems.

 

[Patricia Sturick]

I call the bank after the inspection and ask what they want. No matter what they decide, I always comment if they are not on.

 

[Cob]

It never used to happen to me with a conventional loan, but some clients today do want to know if the utilities are on in a vacant house.

I have a couple of clients that ask for it on a refinance and the people have lived at the property fro 20+ years.:Eyecrazy::Eyecrazy: