VA and FHA Appraisals
Home appraisal inspections on FHA and VA loans are a little more detailed than on conventional loans (and more expensive). The appraisers are required to perform certain minimum inspections as well as evaluate the market value of the property. Although these inspections are not as detailed as a professional home inspection and should not be considered a substitute, sometimes repairs are required.
These are additional costs the seller would not be obligated to pay for someone obtaining conventional financing, so your offer should include a maximum figure for these repairs. Otherwise the seller is signing the equivalent of a blank check, and they do not want to do that.
At the same time, whatever figure you put in will most likely affect the sellers willingness to negotiate on price. If you put $500 as an estimate, the seller may be $500 less negotiable on their price. If no repairs are required, you may have been able to get the house for $500 less than what you and the seller agreed on as the price. The solution is to add a clause to your offer that goes something like this. "If required repairs cost less than the maximum amount allowed, the excess will be credited toward buyers closing costs."
Next You and the Seller Must Agree
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| Benefits of Owning Your Own Home |
|---|
| Important Things To Avoid Before Buying a Home |
| Don't Buy a Car - or Did You Already Buy One? |
| The Business Cycle and Buying a Home |
| Comparable Sales and Your Offer Price |
| Major Factors Influencing your Offer Price |
| Offering to Purchase Real Estate- the Basics |
| Writing an Offer - Safeguards Regarding the Property |
| How Financing Details Affect Your Offer |
| How FHA and VA Financing Affects Your Offer |
| Selecting Service Providers |
