Something that a lot of sellers forget is that there are a bunch of new lending rules out there that could affect the closing of their home.
Sellers are used to the fact that inspections can be a real pain in the neck, what they might not know is that appraisals are becoming just as painful. Appraisers are under increased scrutiny these days. Therefore it is increasingly more difficult to justify values. On top of that, appraisers are requiring repairs at a higher level than in the old days. This means that they are scrutinizing properties like never before. Roofs and windows are definitely on the radar of all appraisers. If there is any visible damage to the home in any way, you can bet that the appraisal value will be subject to those repairs being made. Sellers be aware, this means that the seller will be required to make those repairs prior to the loan being fully approved. Sellers will have the option to negate the contract and not follow through with the sale, but if the deal is to close, these items have to be addressed.
When you list your home for sale, ask your listing agent which items they are seeing as appraisal conditions in your area and get ready to face that challenge during the loan approval process. And remember to give yourself time, contractually, to be able to make the decision as to whether you want to fix the items or walk away. Your agent should be able to coach you along and help you understand the new world of lending, if not, find one that can!
Something to consider for today’s “Homework”
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