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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 sellerâs 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 buyerâs closing costs."
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