Thursday, July 12, 2012

Property Appraised Above Loan Amount!

Great news, the duplex property I am purchasing appraised $30,000 above my loan amount! This means that I have equity and that I'm getting a killer deal! I am really excited everything is moving smoothly and that I might be closing a week before the scheduled date.

The appraisal didn't act like an inspector like so many people said they act. My appraiser did call out repairs that need to be done in order for the property to meet FHA/HUD standards. I'm glad I have a 203k loan because I will be able to do these repairs AFTER I close escrow and not BEFORE. These repairs are nothing insane compared to what other blogs have said inspectors look for.

The following repairs were called out by the appraiser.

1) Replace all broken windows
2) Any peeling paint needs to be scraped and removed from the site entirely. Area will need to be treated and repainted
3) Light fixtures missing (electricity wire exposure)
4) Termite damage eaves
5) Repair missing or torn crawl space screens
6) Holes in walls (drywall repair)
7) Missing door knobs
8) Repair missing or chipped wood siding

I read a lot of places online that the appraiser will want updated electricity, plumbing, functional heaters, and so much more! This was NOT my experience!

The following were NOT called out by my appraiser:
1) Broken security bars
2) Stove (read that stove is a "must" for property to be habitable)
3) Kitchen cabinet doors that are missing
4) Floor heater
5) Broken tile around the house
6) Laundry room floor sinking

Reading into something so much can really make you go crazy and stress you out for no reason! I was so afraid the appraiser was going to request a lead inspector, have roof repaired (not in good condition), and replace floor heaters. Don't let this process stress you out, just look into the future and believe everything is going to turn out great, and if it doesn't, there will be a solution for you!

I thank God for my experience thus far!

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