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Fixing a “Fixer” Before The Appraiser Arrives

fixing a fixer before appraiserOne of our agent partners called me last night to discuss an “as is” contract for one of her listings, a clear “fixer” with some rotted siding and substantial debris in and around the home, among other things.

She asked me if she could include a comment in the addendum stating the “buyer will be responsible for all repairs called out by the appraiser.”

I told her that would likely trigger a request for deal-killing inspections by the underwriter, given the condition of the home.

More importantly, I reminded her that the appraiser has to “call out” all visible conditions and health and safety issues and that no transaction can close without having all called out issues repaired.

The seller does not want to do any repairs, so her only option for closing the transaction with conventional financing is to clean up the property and do enough improvements to appease the appraiser.

The repairs do not have to be perfect, but they do need to address all visible problems; more thorough repairs can (and often should) be done after close of escrow.

This is potentially risky b/c the listing agent (and often the pending buyer) are doing repairs to a home they don’t own.

But, I have seen this work numerous times, and we have handymen at the ready to help in these situations.

Let us know if you need a referral.

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646