There has been much made recently about foreclosed homes and the conditions of them. People are looking constantly for a better deal and trying to purchase a home for well below market value. But what happens when your mortgage lender orders the appraisal? We all figure that if the house is priced well below market value then they should have no problem getting the house to appraise for more than they are looking to purchase the home.
However; today the appraisers are looking for more than just the value of the home. Certain guidelines with FHA and VA loans have made it more difficult to purchase homes in "as-is' conditions. Which in turn has led banks to sell their homes without those financing avenues availble to consumers.
Recently I had 2 cases where the appraiser placed the value of the home at or slightly greater than the agreed upon price. However; in both cases the apprasier stipulated repairs to be done to the house prior to them being able to clear the appraisal for the type of financing that was requested.
In some cases it can be minor repairs. In other cases the repairs can be quite costly. So, who pays for the repairs? Is it something that the seller can afford to repair or is the buyer going to have to pay to have the repairs done to the house? these are questions that need to be asked if you are purchasing a home in an "as-is" condition. It can make the difference between you being able to purchase the house and not being able to buy the house.
Make sure if you are purchasing a home in "as-is' condition that the home will qualify under the type of financing arrangemetns you are looking to get....otherwise you could be going through the process and making the arrangements for the move that may not happen on that home.....
Dave diCecco
Realtor/Broker
www.davedicecco.com
No comments:
Post a Comment