Are Repairs Required to Sell a Property?

April 13, 2010

If the buyer of a property is purchasing a property with the assistance of a lender (getting a loan), it is possible that the appraiser will list repairs that will be a condition of obtaining financing. Usually this is less the case with conventional financing as the appraiser will make the judgement as to the value of the property based on the present condition. However, if the buyer is using FHA insured financing, it has been historically typical that there could be repair requirements that must be completed prior to the loan being funded.

Some of the most frequently FHA required repairs include the following:

Broken windows

Extensive drywall damage (Large holes, severe water damage)

Defective heat source

Gas leak

No hot water heater

Water heater must be properly strapped to the wall (Top and bottom wrapped and bolted)

Missing plumbing fixtures

Missing or exposed electrical

Chipping and peeling paint (interior and exterior)

Missing exterior doors

Security Bars on windows must have quick release

Leaking or just worn out roofs (will need a roof certification)

Any evidence of structural problems (excessive cracks, slanted foundation)

When selling a home it would be wise to make sure that it will not have any of these red flags. When purchasing a home, you might want to include a list of required repairs in your offer so that the seller knows that these costs will be incurred and could affect the bottom line.