Jbm, Home Seller in Multnomah County, OR

realtor is telling me to replace roof on house I am selling. He says appraisal people will require it. Is that correct?

Asked by Jbm, Multnomah County, OR Tue Oct 20, 2009

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For a FHA loan the roof has to be certified by a cLic. Contractor for at least 2 years for the apprasier to ok the roof for the loan so if the roof needs to be replaced it would be better to get it replaced it will sell quicker and the loan will go thru faster.
0 votes Thank Flag Link Wed Oct 21, 2009
We sold a property in Portland.
The UNDERWRITER for the buyer's loan said that they would deny the buyers financing unless the roof was replaced. We ended up having a second inspection as noted below, then arranged to have the funds for the new roof paid out of escrow and the buyers were able to select their own roof.
0 votes Thank Flag Link Wed Oct 21, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
Most of the previous responses give you good advice. Here's my $ .02 - have a licensed and bonded roofer inspect the roof and give you a roof certification and/or repair options. Also, some roofers will agree to take their payment out of escrow when your property sells and closes depending upon the situation. If your cash on-hand is tight, and the roof needs repairs/replacement, this might be an option.

Best of luck!

Chris Aldridge
RE/MAX Equity Group
Lake Oswego, OR

0 votes Thank Flag Link Tue Oct 20, 2009
Yes, that could very well be the case. How you deal with this issue depends on the circumstances.
Has this issue come up because of an inspection?
Do you have the money to do the repairs?
Do you have an estimate ( or 3) to do the repairs?
What are the ways that you can finance the repairs?
Does the whole roof need replacing or just spot repairs?
Do you want to just take the chance and go ahead and get a buyer under contract and see if it is an issue with their lender?
Do you want to get a roof inspection prior to putting your house up for sale?
These are all issues to discuss with your Realtor to formulate a strategy on how to proceed. Good Luck.
0 votes Thank Flag Link Tue Oct 20, 2009
If there is 3-5 years of life spam it is ok, also it depends on who is buying it, if you like to discuss this further please feel free to call me or e-mail me directly.
Tony 503-796-9158 tonyra@johnlscott.com
0 votes Thank Flag Link Tue Oct 20, 2009
It will depend on the type of financing the buyer is using and what an appraiser calls out. Sometimes they call out every little detail and other times they just give a price for the condition of the home.
0 votes Thank Flag Link Tue Oct 20, 2009
If it's that clear to the realtor that the roof is at the end of it's life, then replace it. Lenders care about RISK and the roof is the most important item for upkeep for the home, and right now, no matter what the amount of Loan to Value is, the roof in bad shape will need to be replaced. Even a roof certification that it will ok for 2 years is not allowed right now. Best to replace it now and put in the price. After a buyer is there it's too late, an you still will have to replace the roof.

Good luck.
0 votes Thank Flag Link Tue Oct 20, 2009
If most of the buyers in your area/price range are using FHA or VA financing to obtain mortgages, and if your roof is in poor condition? Yes, it could come up that an FHA appraiser might note the condition of the roof and then the underwriter for the buyer's lender would require that be done or decline to write the loan.

Even on some conventional loans with less than 20% down - I am finding if the roof is leaking, sagging or has other obvious issues the appraiser may note the same on his/her report, which could lead to the buyer not being able to get PMI (Private Mortgage Insurance) and thus, no deal.

You could decline to offer your home to buyers utilizing FHA or VA financing, or needing PMI, but in certain areas and price ranges, that could severely limit your buyer pool.

It could also arise as an issue with any buyer's home inspector - even a cash buyer.
0 votes Thank Flag Link Tue Oct 20, 2009
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