Homes In Poor Condition Revisited – Reports & Visible Repair Needs

We currently have an escrow that is stalled b/c the property has significant condition issues that we were not aware of until the appraiser inspected the property. There is conspicuous dry rot, a sagging rear deck, and an adverse pest report that is referenced on MLS.

In situations like this, the appraiser has to disclose all the issues in his appraisal report b/c his license is on the line. He cannot turn a blind eye to obvious repair and health and safety issues (like dry rot, peeling paint, falling-down deck, leaky roof, etc.). He also cannot ignore a reference to a pest report.

Now, a significant amount of work will have to be done prior to close of escrow.

To avoid such expenses and escrow delays, there should be no references to reports in the contract or on MLS. In addition, all major repairs (like deck removal) should be done before the appraiser inspects, and he will then often turn a blind eye to the minor items.

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