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Want to buy this house. There is a small amount of water in basement caused by condensation from air conditioning. There is a sub pump and it works. Had house appraised. Appraiser tells seller he has to fix this. I am glad the seller has to fix this problem but I did not know the appraiser could do this. I thought all the appraiser did was determine the value of a home. How much power dose an appraiser have?

2006-08-11 01:09:32 · 4 answers · asked by make the momma crazy 2 in Business & Finance Renting & Real Estate

4 answers

An appraiser is a person who estimates the value of a home based on facts and trends. The appraiser is an expert in valuing your property based on closed sales in the immediate area, current listings and the conditions of the home. All appraiser's have different backgrounds, some in construction, plumbing etc. An appraiser is the eyes and ears of the bank and their underwriters. All appraisers know their clients' (banks) requirements for a loan. If the leak in the basement or any other repairs necessary, are substantial ones that affects the livability of the home, then the appraiser can complete the report subject to the repairs. This means that the valuation of the property is contingent upon repairing the damages. With a simple leak, the appraiser can make note of it, penalize the subject and recommend that a plumber should inspect the situation.

This is for the first responder: The underwriter cannot change the value of your home based on the findings, only an appraiser can adjust your value. The underwriter can change your loan amount or any other factors based on the appraiser's findings. In refinance situations, the appraiser works for the bank and it is the appraiser's responsibility to let the bank know the conditions of the house. Even if he/she did not put the picture in, a diligent appraiser will note it somewhere in the report. An unfinished room affects the value of your house because at the time of the appraisal the room is not in livable condition.

Sam

2006-08-11 02:45:27 · answer #1 · answered by Sam 2 · 3 0

I've seen two ways that an item of deferred maintenance (which is what the water and water damage would be categorized) is handled:

1) The seller fixes the problem, or

2) The seller deducts the cost to cure from the sale price of the home.

My guess is that the appraiser made note of the problem in the report and that it affected the value of the property. The appraiser doesn't really have the power to make the seller fix anything. They *can* recommend they remedy the problem or else they won't likely get their full asking price.

In transactions where financing is involved, it the lender who has the most power in the sale. They seriously can make or break the sale if they see anything in the appraisal that doesn't meet their underwriting standards.

Although everyone loves to blame the appraiser, they really have no role in the decision-making process. It's kinda like how credit reporting agencies have no role in a credit card company's decision to accept or deny an application. Like the credit reporting agency, appraisers can only report (to the best of their ability) the relevent facts about the property and the trends in the market. Unlike a credit reporting agency, the appraiser uses these facts and trends to give an opinion of value of a property. :)

P.S. Fantastic answer Sam! It's a relief to see an appraiser out here giving some intelligent answers to appraisal related questions!

2006-08-11 13:00:23 · answer #2 · answered by ? 3 · 0 0

In our case the appraiser has more power than we would like him to have. We just had our house appraised for a refinance. Because the appraiser took pictures of an unfinished room (which was part of the reason to get the refi.--so we could finish the room) the appraisal was lower than it would have been if he did not take the picture. This means it is harder to get it past the Underwriter--as we were told that Underwriters do not like unfinished rooms.

2006-08-11 01:20:54 · answer #3 · answered by Terry K 2 · 0 1

each and every residing house that's being foreclosed on needs to be appraised. So, there continues to be call for for the provider. regardless of if, maximum appraisers are self sufficient contractors, they have been on the interest for a protracted time, and that they are not going everywhere any time quickly. additionally, maximum lenders and private loan brokers have their well-known, prevalent appraisers that they use on a persevering with foundation. So, getting your foot interior the appraisal door could be puzzling. this would not look like the form of factor you may in simple terms leap superb suited into, noticeably section time. i think of that the only way you need to get an outstanding answer to regardless of if to pursue this highway could be to talk to a pair of prevalent appraisers approximately it.

2016-10-01 22:45:31 · answer #4 · answered by ? 4 · 0 0

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