I am doing a little DIY work by replacing my cheap window trim with something nicer but forgot my appraiser is coming next week because I'm wanting to drop my PMI (I have way more equity now than I need). Definitely don't have time to finish this before the appraisal walkthrough so they'll see my walls with gaps exposed between the drywall and windows. But everything's fine, it's not like my home can fall apart right now. Will they flag me or something?
Will an Appraiser Be Upset if I don't have my window trim on my walls yet when they review my home's interior?
byu/Stuart517 inRealEstate
Posted by Stuart517
2 Comments
Really depends. Safety, security, and structure is what most lenders require. If you are talking about one window with trim on the interior. It would be noted and move on. If you are talking about the entire house and no trim. Not really a structure issue but would most likely require an adjustment for marketability.
No professional appraiser is going to be upset because you haven’t finished something. However, he may subtract the cost that you would incur to hire someone to do that work from his final value conclusion. For example, if your house is worth $200,000 and he thinks it’s going to cost $2000 for the work that remains the value he is going to report will be $198,000. If there is extensive work, you may end up in a situation where the value that is reported is less than what you need for your PMI.
Alternately, the appraisal report can be done “subject to” completion of the repairs. In this instance, he would report a value of $200,000 and include a list of the items that need to be repaired. This typically requires that the appraiser come out for a second visit to take pictures of the completed work.
Which way the report is done is based on what the lender wants.
Source: Appraise for over 40 years.