When an appraiser is assigned a property, they are armed with more than just the offer price and the amount of any seller concessions. They are also told what kind of loan the buyer plans to utilize for the purchase. Each type of loan has their own set of property guidelines and the appraiser is trained to look for them.
With a recent listing, an agent presented an offer from a buyer who was pre-approved for an FHA loan. I mentioned to the agent that an FHA appraiser would report the fact that the property had no stove. No stove (or equivalent), no FHA loan.
We gave the buyers agent permission to install a temporary stove. The agent must have forgotten all about it because along came the appraiser and ... no stove, no FHA loan.
After a stove was "installed", the appraiser was called back for a second look. He didn't like what he found. To be honest, I don't know if appraisers go as far as testing a cooking device, but this gas stove obviously wasn't functional. The gas line was visible and capped.
The buyer has since removed all contingencies, and has committed to buying this property. He has purchased a new stove and it will be professionally installed this evening. The appraiser will need to be called back a third time.
Callbacks cost from $125 to $150. While this might not seem like a lot of money, it is a fortune to a young, first-time home buyer. Some callbacks, like the two with this property, could have and should have been avoided.
If you are considering buying a single family residence or condo, ask your REALTOR® what guidelines a property must pass in order for your loan to be funded. There is nothing worse than a call from your lender telling you that you have to pay more money to remedy a situation that could have been taken care of before the appraiser was called in.
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