House #6: Appraisal, Inspection

April 22, 2009 · 5 comments

The buyers for The Red Garage House had their appraiser and inspector come out to the house this evening, and they said they’d love for us to be there with them during the appraisal and inspection. Of course, we were happy to attend…

The appraiser came by first, spent about 15 minutes at the property, and asked me to send him an itemized list of the work we did on the property. Hopefully, we won’t have too much trouble appraising this one, though who really knows in this weird market.

Then the inspector came by. He spent about 90 minutes at the property, and found absolutely nothing serious to note. There were a few little things — like switches that didn’t seem to control anything, exposed wires where the garbage disposal used to be, etc. We’ll have our guys out there in the next few days to fix some of the things that were important to the buyer, and then hopefully we can have a smooth closing, without any major roadblocks.

I’m still a bit concerned about the who FHA process given that we’re not yet at 90 days, and that the Warranty Deed only got recorded last week. But, again, I’m hoping the lender deals with these issues without ever having to get either the buyer or us involved.






5 responses to “House #6: Appraisal, Inspection”

  1. Bilgefisher says:

    Wow, the appraiser actually spent a decent amount of time there. I hold appraisers just above lawyers and journalists.

    Good luck on this one, I hope they are willing to work with you on the 90 day rule.

  2. hakrjak says:

    You’ll know as soon as your title company gets figures back 😉 At that point, there is usually no turning back, and you’re ready to close ‘er out. I would almost guarentee it’s 90 days from the purchase and not the recording anyway, but we shall see.

    -C

  3. J Scott says:

    Hak –

    After talking to a number of FHA lenders/brokers, it appears the decision whether to base the 90 days on the purchase or the recording lies in the hand of the lender. Generally, the lender will take guidance directly from his investors (the guys that actually buy the loans), and if those guys say, “90 from purchase,” the lender will do that. If, on the other hand, the investors say, “90 days from recording,” the lender goes that way.

    My main lender says his investors won’t do the purchase date, so I can’t work with him on this one…

  4. Jingle says:

    J Scott,

    I’ve learned to always leave 3 items for the inspector to find. I’ve found that they feel like they have to find something to justify themselves. If I give them their deficiencies, they won’t start digging or making stuff up.

    Jingle

  5. Bilgefisher says:

    Thats pretty funny. We use to do that in the service, leave a few minor items for the inspection team to nibble on.

Leave a Reply

Your email address will not be published. Required fields are marked *

WANT FREE HOUSE FLIPPING STUFF???
Sign up for our Newsletter and get immediate access to our FREE 150+ Page eBook on New Construction, plus all of our business tools: Single-Family and Multi-Family Business Plans, Rehabbing and Buy-and-Hold Spreadsheets, Contract Templates, and more!
We respect your privacy. No Spam...EVER!