House #22: Inspection/Appraisal

March 7, 2011 · 0 comments

The buyers for The Trifecta House completed their inspections last week and we got the first appraisal (of two) back today…

As for the inspection, the inspector found about a dozen minor issues (broken window latches, disconnected hose on washing machine, miswired outlet, etc), two cosmetic issues (missing shelves in the master bedroom closet and two missing mini-blinds) and also noted two potential issues with the plumbing — a rusty water-heater and a malfunctioning pressure reduction valve (PRV).

The buyer requested that we fix all the issues, and we agreed to fix everything but the two cosmetic issues. The water heater likely didn’t need to be replaced, but the buyer was concerned, so we agreed to do it. The new water heater and PRV added about $900 to the budget, but the rest of the fixes were under $50, and the buyer should be very happy that pretty much everything noted by the inspector was repaired.

As for the first appraisal, this was a minor concern of ours. With The Lake House selling for just $99,500 right around the corner, I didn’t think we’d get an appraisal for the $107,000 contract price we have on The Trifecta House. And I was correct. The first appraisal came in at $105,000.

While I would have loved for the appraisal to come in at the sale price, I’m actually okay with this outcome. Assuming the second appraisal comes in at at least the same amount, we’ll just drop the purchase price by $2000; the buyer will get a better deal and we’ll still do okay on this project.

The mortgage broker will likely be ordering the second appraisal on Tuesday, so hopefully we’ll clear that hurdle by the end of the week, and if everything goes smoothly, we should be ready to close by the end of next week.






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