Screwed up big time. Need some advice.

[Manuel Sarabia]

I am selling a house to a relative. There was a reinspection that was needed to be done by the appraiser over small items such as water heater straps, and a CO2 detector. These items were corrected over 3 weeks ago and the lender notified me the buyers are ready for loan docs pending the final inspection by the appraiser. I let the lender know 3 weeks ago about the repairs but the appraiser hasn't even gone out yet.  The house is in the process of being renovated because I thought the reinspection cleared and a lot of things have been demo'd(closet doors our out, toilets, sinks, a wall was removed. Everyone in this deal screwed up including myself. The appraiser needs to go out and he will see a lot of exposed things about the house. Will he be noting these items as new repairs for another reinspection or will he sign off on the appraisal he already did for just the two items he listed?

[Jon Holdman]

What sort of a loan is the buyer getting?  If its hard money or a construction loan this shouldn't be a problem.  But, if the appraiser is worried about items like straps on the water heater and CO detectors, this sounds like conventional.  If so, yeah, you have a problem.  Conventional loans usually require the property to be habitable.  These extensive renovation should have waited for the loan to close.  They may well have to be completed before it can close now.