What are common repairs that the buyer's lender will require? Home Seller Question of the Week

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by Brian Huie on 3/4/24

The three most common items I’ve seen while representing either side of transactions are missing handrails, missing water heater straps, and flaking paint.

We often look at the government-backed loan requirements (FHA, VA, USDA) in answering this question in order to ensure that we meet the most stringent appraisal standard. The list below shows the requirements of government back loans, which the appraiser uses during the appraisal.

  • Missing handrails

  • Missing water heater straps

  • Damaged interior doors

  • Cracked glass

  • Dripping faucet

  • Worn or missing floor/ finish coverings

  • Minor flaking paint if the year built is 1978+

  • Leaking/worn/mossy roof

  • Minor damaged sheetrock/ceilings

  • Missing freestanding appliances

  • Minor crawl space debris

  • Any items that affect the safety, soundness, sanitation & habitability

  • Structural issues & issues with dampness

  • Termites

Depending on the verbiage of the purchase and sale agreement, the seller or the buyer may need to pay for and hire trades to make the needed repairs in order to close. In our market, it is common for the buyer to complete the repairs with the written permission of the seller. However, if the buyer is unable or unwilling to complete the repairs, a common contingency allows the buyer back out of the transaction and get their earnest money back.

I have my seller’s homes inspected early in the listing preparation process so that we can strategize and determine what items should be addressed as priorities to prevent appraisal issues from arising once we are under contract with a buyer. My goal as your agent is to get you the safest offer possible, in part because this ensures that your home will sell for more, and close quickly.

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