Criteria to gain a completed appraisal? Light rehab needed on a duplex

Criteria to gain a completed appraisal? Light rehab needed on a duplex

Boise, ID · Member since 2013 · 45 posts · 18 votes

Mods- I'm not sure where this post should go. Please move it to where ever it needs to be. ====basically its questions regarding minimum criteria needed for a completed appraisal.

All,

I'm in the process of offering on an upstairs/downstairs duplex with sfh. House is currently rented, upstairs also occupied. BUT, one unit needs a small amount of work(carpet was ripped out- hardwood needs sanded/finished), new paint, etc... Not a lot of work(unit is not trashed)--- it just looks bad.

I'm new to this- I don't know what is "appraisable" and not. I'm trying to avoid paying for an appraisal I can't use. Aren't necessarily looking for a million-gajillion dollar appraisal, just a completed appraisal to make my lender happy.

Any thoughts? Also- is there somewhere I can find the guidelines for appraisals? My internet and BP searches aren't turning up anything that covers this specific dilemma.

-Is this something that I may have to do a construction loan or something similar? Still learning about those forms of financing...

-also, I have a general email out to an appraiser==== posting here to get more input while waiting for a response...

thanks,

Jimmy

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  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    12y

    An appraisal can be done based on "as is condition" or based on "subject to improvements". Or have both values done at the same time.

  • J. MartinPro Member
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    Generally, as long as there are no health or safety hazards, no repairs will be needed before the close of escrow. You may get a lower price on an "as-is" appraisal. But you shouldn't have any issues getting the loan as long as the LTV clears.

    They will still finish the appraisal either way. It depends what the bank will accept.. If there's a health and safety hazard, they may want someone to address it before close of escrow.. If it's cheap, you may even want to provide the estimate from a contractor to the appraiser, then show the Bank you have plent of money to get it to liveable condition to get rents going .. (if they are using that to qualify).. Depends on your loan type too..

  • Boise, ID · Member since 2013 · 45 posts · 18 votes
    12y

    Thanks guys!

    That helps immensely.

    Another example of how awesome and helpful people here at BP are.

    thanks again,

    Jimmy

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