Home appraisals often strike a bit of fear into the hearts of home buyers and home sellers alike. For buyers, appraisal results determine the amount of loan a lender will offer them. For sellers, appraisal results mean making difficult decisions about which repairs are worth the expense, time, and effort involved.
For both, the appraisal can be a deal-breaker. Read on to learn about the most common appraisal required repairs.
Appraisal Issue 1: Roof Repair
One of the most common appraisal issues is also one of the most expensive: Roof repairs. The average cost to replace a roof runs between $4,700 and $10,400, or about $405 per square foot.
Home appraisers will look for tell-tale signs of damage, such as:
- Light shining through from inside the attic
- Leaking, water damage, dark spots, or trails
- Sagging areas
- Pieces of shingles in rain gutters
- Excessive wear and tear around vents and chimneys
Asphalt shingle roofs generally last up to 30 years, while tile roofs may last up to 100 years. However, mortgage lenders often require that a roof has at least three years of life expectancy in order to approve a loan.
Appraisal Issue 2: Paint Problems
Peeling paint may be unattractive, but that’s not the only reason an appraiser may cite it.
Did you know that paint can also be a health hazard? Homes built before 1978 may contain lead paint, which has been linked to a number of human health issues.
Many mortgage lenders won’t issue a loan until paint issues are repaired. This includes government loans such as FHA and USDA. What if the home was built after 1978? Many appraisers will still cite peeling paint, as bare wood can hasten decay. That’s not good for a home’s long-term value.
Appraisal Issue 3: Hazardous Handrails
If your home has missing or broken handrails, be prepared for the appraiser to cite them.
Most mortgage lenders require any set of three steps or more to have a handrail. A broken or missing railing is considered a safety hazard. Porches, balconies, and decks may also be required to have a handrail, in order for lenders to issue a loan.
Appraisal Issue 4: Wonky Wiring
Of course, electrical system problems send up red flags. But what are appraisers looking for when they inspect a home’s electrical system?
One common issue lies in a home’s amperage. If the house has a 60 amp electrical system, many lenders won’t issue a mortgage. Most bank appraisals will require a system upgrade before approving a loan.
Appraisal Issue 5: Haywire HVAC
Before rubber-stamping a loan, a traditional mortgage lender needs to know that a home has a functioning heating and cooling system.
The appraiser will check to see that the home’s HVAC system is working properly, including the furnace, air conditioning unit, venting, and duct ways.
Like roof work, HVAC repair and replacement isn’t cheap. A new unit costs between $2,000 and $5,000, while a system replacement can run up to $10,000.
So what happens if your appraisal comes in packed with repair issues? For many homebuyers, their loan is on hold until the problems have been resolved. For many home sellers, the cost of completing all those repairs is simply too high. All too often, it means the end of the deal.
Fortunately, home sellers have a better option: Sell to HomeGo. In most cases, you’ll receive an immediate cash offer. Your sale will close in a matter of weeks, rather than months. You won’t have to worry about making a single repair because HomeGo buys homes as-is in any condition. No appraisal or inspections required!