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Full Video Transcript

Wynn:

Good morning, everybody. We are talking appraisals today appraisals something that most of the time we don’t have to worry about. We have to know what to deal with. It’s you know, the bank’s going to send their appraiser out. They’re gonna take care of it and it’s gonna come back and they’re gonna say, Hey, you’re good. And that’s all we care about. 95% of the time, 99% of the time. That’s all we care about is, Hey, we have a good, good appraisal and you never see this appraisal report. You never do anything. Everybody should have a copy of the appraisal report. Yep. If you haven’t had an opportunity or a reason to look at one, you’ve probably never wanted to. And I would recommend if you never have to, never look at one of these things, right? So the full report is normally 30 to 40 pages.

Wynn:

I just printed out the first 10 pages because that’s where all the good stuff is. The last, last two thirds of it are all pictures. They’ll show, here’s a picture of the house here are the neighboring houses, if there are any deficiencies they’ll show pictures of what you need to fix. So like for VA or FHA, if there are lender-required repairs, they will note them on the report and they’ll show pictures on the report. So you would then know, Hey, I gotta fix this siding. I gotta fix this window. I gotta fix this door. And there’ll be actual pictures there. If there aren’t pictures there, always call the lender or call the appraiser because when we’re representing our sellers, we don’t wanna be writing blank checks to say, Hey, you have one that said, what’s that? Well, the windows replace fogged windows. Well, yeah, no, not all of that. Like tell me specifically what ones, same thing here with, with the repairs. Anything that needs to be, has to be specific. So we’re not gonna get into the last part, but we do want to delve into the first part.

Sam:

And, and like, for example, if it’s a VA, especially if it’s VA appraisal, those have to be fixed before closing.

Wynn:

Those have to be fixed before loan will get approved. Correct, yep.

Sam:

All right. Is there, I mean, because does that ever happen with FHA or conventional?

Wynn:

What FHA maybe does, does what happen with FHA conventional

Sam:

Where things are specified in the appraisal? Like this has to be fixed before the loan?

Wynn:

Well, it it’s all, so if there is an appraisal and all, so if you want to, we’ll, we’ll stay at this topic if you wanna switch to,

Wynn:

To reconciliation. Okay. right in that last little bottom section, you’ll see on this report here, which is one of my properties says this appraisal is made either as is, subject completion of plants and specifications on the basis condition of the improvements that have been completed or subject to the following repairs or alterations on the, for the repair. So, so in this case, we don’t need to do anything to the house, but if you need repairs, it’ll say, you know, it’s subject to the following repairs needing to be done. And then right, if you look so it’s three. So at the very bottom says there are two lines, it’s all caps, right? Assumes all systems function properly, blah, blah, blah. This will state where these caps are down in the bottom of page two, it’ll say rotten woods, fix, fix sodding, fix this, fix that, or it’ll say see pictures, page 12, 15, 18, or whatever.

Wynn:

It’ll specify. If you don’t have specification, you don’t know what you’re fixing, but we gotta gotta clarify, but it will say subject to. So yeah, if it does, you gotta handle it immediately. A lot of times, we’re so busy that, you know, we’re not necessarily Johnny on the spot with repairs. So couple notes with repairs, never do any repairs until due diligence or other contingencies are over with. Right? Because if you do a repair the house terminates under due diligence and the seller just paid a thousand dollars for repairs, it goes back on the market. And then the new buyer doesn’t give a crap about the repairs you just did. And you’re out a thousand bucks. So always wait until due diligence ends to do any repairs at all. I like to wait until all the contingencies are over that they can’t back out for any reason.

Wynn:

Then if they do, we would at least have the earnest money to compensate us for the repairs that were done. Now, in this case, some of these repairs may be extensive or lengthy and it might take a little bit of time. So you might need to schedule them up front. So as soon as you get these things back, call ’em immediately and get on the counter, say, Hey, if you need a roof repaired, right, don’t wait until the day before closing to say, Hey, can I get a roofer to repair a roof? So you can schedule the repairs, but I would recommend waiting until – what’s that?

Kelly:

You can get your quotes.

Wynn:

Yeah, you can get your quotes, get it on the calendar, get it all set to go. Because typically you’ll have, you know, 10 days or so between all the contingencies that end and the closing date to do all the, you know, spend all the money. But some of these things will, will need, you know, some wood siding, painting, exterior, replacing some roof shingles, things like that. For VA and FHA and that’s not necessarily a next day project. Unless you have a Tucker

Kelly:

Sam mentioned conventional but that does not include conventional.

Wynn:

Thank you by the way, say again,

Kelly:

Conventional appraisals

Wynn:

Do not conventional appraisals typically do not. I have seen one conventional appraisal in all my years that actually had repairs needed for a conventional loan. So it is possible. I was floored. I don’t even remember. I just remember it. I was like, it’s a conventional loan. I’ve never had a, never had a problem with that. But it can’t happen on any, anything. So let’s, let’s go ahead and delve into what a appraisal report looks like. I I said if you’ve seen them before, great, if you haven’t and this is the first time we’ll kind of break it down, I’ll go quickly. Because the purpose of this training is to what do you do if you have a low appraisal, right? How do you fight an appraisal? So the top part is the subject property got like part, top part of our top part of our purchase and sale contract.

Wynn:

And it has the contract price in the second. So they know what the contract price is, right. They know the answers to the test when they go out and look at this thing, they have all this information, they know the neighborhood, the site, all these things are there, you know, they gotta check the box for all these various, you know, if it says public, private, well, all these various things on the top part then you move down here to improvements. So the bottom part, the bottom third of page one talks about the improvements. In this case, this was a townhome you know, has heating, has a slab, all the various siding and walls. The interior exterior, you can see how this is all kind of broken down of what the subject property looks like. All the way down to the bottom of the first page.

Wynn:

So this is all, a lot of work goes into an appraisal. So like we, we love our appraisers. And they do a lot work and they’re doing all these all the time. So it’s not like we’re the, they’re the only ones that are doing the appraisal. I mean, they got 10 of these things to do 20 of them sometimes. So they knock them out, but it it’s it’s time. It’s very time consuming to do an appraisal and do it well. Well. what we’re normally typically concerned about is page two. So for, for realtors, page two is the comps, right? So first part talks about the property itself. Second part talks about the comps. So in this, in this case, there are three comparable sales. They can do more, you need at least three. Now in this case there were actually nine, nine comparable sales.

Wynn:

You need a minimum of three. Typically they do four to five. They’ll throw a couple extra in because if, as long as there is a nice bulk of houses, you know, they’ll throw a couple extras in just to make sure that they’re good. But what we’re gonna, we’re gonna look at here top of page two. The first column is our subject property. So underneath the subject, it shows sales price, price per square foot down below 1400 square feet it’s a townhome, quality of construction. Age is 12 years old, condition. There are various condition levels, C one C two C three number of bed rooms, number of rooms total, gross square footage of the unit. And then down additional features, patio, fence, updates, renovations, good insulated windows. So all these things are big bulk items that the appraisal looks at. Everybody tracking and following?

Wynn:

And then he looks at three other sales that are comparables in, in their mind. So in this case, you see the addresses up top and we’ll compare them all right here. So the first one here was, it sold for one, for $152k, right? Go on down. It has date/time of sale. So let’s circle this. Now this contract we had was done, this appraisal was done in March, right? March was when this contract was done. Date, time of sale. It says S for sale 05/21. All right. So in May of ’21, this house sold and because it sold so far in the past, they’re giving a credit of $15,061 in the credit plus column for that. Right. moving down a little bit more. It’s a townhome. So it’s comparable quality is the same quality, same condition, baths and bedrooms, right?

Wynn:

6, 3, 6, 3, 2 and a half square footage is 1740. So it’s a little bigger, so the detract $7,600 because it’s a bigger, and they’re saying you have to take value away from yours because that one is bigger. Okay. all the way down here, garage that has a two car garage that has a two car driveway. We have a one car garage drive-in garage. So they’re giving us a $5,000 credit because we have a garage and this subject number one did not have a garage. So we get a $5,000 credit and then the updates and renovations, we were good, they were average. And so we got a $6,000 credit. So they add and subtract up and say, that’s a net net adjustment of $18,461. So they throw that eight. They throw that on top of the $152k that they sold it for. And they say in today’s present value, it’s worth $174,610 is their adjusted sales comp.

Wynn:

Okay. And then we can do the same thing on two and three. So we’ll just kind of go through number 2, $155k sales price that one sold is 6/21. So June of ’21. So the first one was 10 months old. The second one is nine months old, right? They’re giving us a credit of $13,000 subtracting a little bit for square footage, giving us a credit for the driveway or for the garage and giving us a credit of $14,000 total after all the pluses and minuses, same size, everything else saying it comes in at $169k. And then lastly, the last one here sold in 8 of ’21, which was seven months old doing the same thing. Now this condition says C2, it’s a better condition. So they’re subtracting $5,000. It’s bigger, they’re subtracting square footage, this one has a covered patio, subtracting that. And at the end of the day, they’re saying it’s $183k. So those are the first three comparables. So the comparables on the first sheet are weighed slightly heavier. Not all comparables are comparable. So comparable number one, two and three, there is a slight weight difference to them as far as what’s, what’s most comparable.

Kelly:

Is there a difference when it’s a covered patio, Wynn? That you typically see, it’s not like screened in or anything. I’m just trying to remember the differences in value difference in value.

Wynn:

That, I’d have to look to see OP/CV patio. Yeah.

Kelly:

I didn’t know, what, screen – I would assume they could say maybe screen or something open. I would think open.

Wynn:

OP/CV patio, I’d say cover open, covered patio. I would say so. Just covered no screen. And so based on that, right, we’re just gonna keep going down. So based on those three comparables and the various weights that they have on one, two and three, you’re gonna come down to just above the reconciliation. And it has a right above that thickly line that says indicated value by sales comparison approach $175,000, right? Bad news. Huh? That’s bad news. Because we have a contract for $206k, $206,000. That’s a $31,000 difference. That’s a problem. That’s a problem. So what do you do when this happens? Right. First thing is after you get done crying, right? So the order of the order of things all goes back to the contract. What’s the contract say if an appraisal comes in low, the contract will say what has to happen.

Wynn:

That agent needs to notify us within a certain amount of time and provide us this information. And then we have a certain amount of time per the contract to renegotiate out what we want to do, right? So the four things that can happen, 1) we can drop our sales price to $175k. 2) They can come out of pocket $31k and meet us at $206k, because that’s what the contract price is. 3) We can work something out and negotiate, meet in the middle 50/50, or 4) if we can’t in this case, it was just too far. We came down, they came up, we just couldn’t make it meet, contract terminated. So if you get to a point where you need to fight an appraisal, right, there’s a process for fighting the appraisal, which we’re gonna go over here in a second. So then the next couple pages, I’ll just look real quick.

Wynn:

So that was the comparison approach. The, there are a couple different kinds of, there’s a comparison approach appraisal, which is used a majority of the time looking at past sales, what they’ve sold for and what, you know, what yours is worth based on sales comparative, right? The other is an income approach, right? They look at rents. So sometimes where we do a lot of stuff you will have rentals, maybe in a bad part of town that the sales, you renovate a house, the sales aren’t there, because everything else is a hundred thousand dollars, but yours is where $200,000. You just renovated it. If you can justify that price based on rentals, based on an income approach, sometimes they use that. So a lot of the business that we do income approach is used versus comparables because when you’re in some of these neighborhoods, you can’t, there are no comps, right?

Wynn:

So you do income. And from the income approach they do a gross, a gross rent multiplier. They take average rents that are typical in the area and then they multiply it by a factor that factor kind of fluctuates. But typically it’s somewhere between 1.3 and 1.5 times the rental amount of typical rents. Now the negative with that is when you are in a lower income, when you’re in a turning neighborhood, that’s getting gentrified, the rents are typically low around the whole area. So like it doesn’t help you out when you are trying to rent it out for $1500 a month because that’s what market rent is. But everything else in the neighborhood is $800 a month because they’ve had 10-years tenants. And that’s what the leases are. So I ran into that with one of my units here that I renovated where great renovation, I know what market rents are, but we got, we got dinged on the appraisal because even with the income approach, it still came in low because everybody in the neighborhood rented it under market. Right.

Sean:

You have like like my property has this situation. There’s no comps around it. And it has an amazing amount of rent. And has like five or six years of history. You can’t use that?

Wynn:

Well, they will take your, they will take your rents into account. So if you can provide your rents and your documented rents that weighs heavily because you can show, this is what is worth. The higher, the, the, the, in an appraiser’s mind, the higher, the rent, the nicer, the house, which makes sense. Right. So if you can rent something out for $2,000 a month, that’s gotta be a better house than renting it out for $600 a month. Right? Absolutely. So if you have documented rent yourself, that can go a long way, but if you’re flipping a house or buying it to rent it out and you don’t have documented rents, you need to go outside, you’re still gonna need to go outside to get enough sample size, to, to justify all these things. But that’s definitely one way that you can do it, the income approach. And then the last one is the cost approach. How much is it could do to cost? How much would it cost to build this whole thing up? Brand new construction, right. Based on all the various factors now, unfortunately there’s a lag with what appraisers have on their sheet. Like the cost of lumber is tremendous. Right. That’s not necessarily reflected. So it’s not up to date when they look at their data sheet, $90

Speaker 5:

$90 a square foot to build a brand new

Wynn:

Yeah. And that’s why that’s that just not the case. Yeah, I mean, years ago, so that’s so the cost approach, I’ve never seen used income approach. I’ve used, I’ve seen used a couple times with some of the business that we do, but more times than not, it’s the comparable approach. They look at sales and that’s what it is. Right. So back to page seven and eight. So the next couple pages are just his signature. So page one page. So it’s a six page page. One through six is quote on quote, you know, the, the business part of the appraisal page one through six, you got your three, three comps, everything else. Boom, boom, boom. And it says with $175k,uif they, after page six, they start adding on other comparables, the pictures, all that stuff. So here he actually added on three more comparables – comparables 4, 5, 6, 7, 8, and 9 on the next two pages. And you can see once again, there’s always the same subject property. So you know what you’re up against and then comparables, right? So here’s one, $213,000. Great. That’s better. Right? Let’s see. It’s better shape. So we’re subtracting $5,000 we’re we’re on page seven right now,usubtracting $5,000. It’s bigger subtracting $6,300 at the end of the day, it says, Hey, it’s worth $201,700, but that one closed October. So that was only a five month old. Right. U

Speaker 6:

I guess that was under the impression that he had to be within 6 months.

Wynn:

Ah, very good. Exactly. Six months is the standard. So when I’m looking at this and I’m real, wait a second. Our top two were 10 months, 9 months and 7 months old. Where are the houses within six months? Because in today’s market, 6 months ago to today is years, right? I mean that’s it’s night and day with the difference. So you want the closest sales in the closest amount of time. So we’ll transition to, how do you fight an appraisal report? What do you do? So you’ve been notified. The appraisal came in low. You say, what can we do? Try and work it out first, Hey, I’ll come outta pocket. I’ll drop the price, whatever, whatever, whatever. If that doesn’t work out, your first call is to the lender. Whoever the lender is, give them a call and ask them what the process is to fight an appraisal. Everyone lender has different protocols. Every lender has different procedures. With a VA loan, it’s called a Tidewater. You have three days. If a VA appraisal comes in low, the government gives you three days to justify why you need a reappraisal. Not a business business days,

Kelly:

Correct?

Wynn:

Business days, correct? Three business days. Um so it’s called Tidewater for a VA loan for conventional and other type loans. There’s not necessarily a name for it that I’m aware of.

Kelly:

From the time the lender’s notified that the appraisal is low? Or from the time I’m notified?

Wynn:

From the, from the time, from the time. That’s a great question. I think it’s from the time that the appraisal comes in and the lender gets it. Okay. Which is once again, I’ll just keep talking about the importance of a good team, having a good team that calls you immediately like Rhett, as soon as that comes in, he’s on the phone and he tells me it’s good or it’s bad. It’s good. It’s bad. Hey, what do we need to do? Because once you’re outta your time window, you may not be able to fight it. So if you are in your time window which is another reason of staying on top of timelines, right? When the appraisals do, you know, be talking to the other side, be talking to the other agent, constantly Hey, is the appraisal back yet.

Wynn:

How we looking, all these things. I got an email from a lender out of the blue yesterday. Hey, the appraisals back. I’m like, great. I gave them a call. Are we good? Are we not? He said, came in at value. I’m like perfect. The other agent did not send me anything, but they don’t need to. It’s good. It’s good. But don’t expect, never expect somebody to do our job. So like a lot of times we’re having to do both sides, keep an eye on the appraisal, even though we’re the seller, let’s keep an eye on the appraisal. Keep an eye on the lender, make sure all this stuff’s going.

Kelly:

I don’t mean to interrupt, but just for Sam’s knowledge, what I do Sam is when we get through due diligence, I reach out to the buyer’s agent, find out if it’s been ordered and when’s a date when it’s due back and I just mark it on my calendar. So because a lot of times it’s like you said, you only hear it if it’s bad, but it’s you good to like be in the know of what’s going on.

Wynn:

Yeah. Cause a lot of times your seller will ask, Hey, did the appraisal come back? And we always wanna have a

Kelly:

Most sellers obsess about the appraisal, especially in today’s today’s market.

Wynn:

Especially in today’s market. Um and of course we wanna have those answers when they call, we don’t wanna have to say, Hey, let find out and call you back. You know, we want be proactive. So when the appraisal comes in be let’s reach out to the client say, Hey, guess what? Appraisals good. One less thing we need to worry about on the way to closing. But if we need to fight it, here’s what we need to do. So call the lender, explain the situation and say, what do we need to do? And they will tell you what their process is. Every lender’s different, right? In this case they say type up an email, provide me with comps that you feel are good, right? You, you, and that’s where we need to do our digging to come up with comps that justify the sales price, right?

Wynn:

So you go into you do your comps, just like you normally do when you are doing anything else. And you need to find things within six months is the window. I mean it’s the same process of trying to find comps from the neighborhood, if not, zoom out, try and see same types and everything. Because we are not trained to do you know, one has a two car garage. One has a one car garage. You’re gonna get a $2500 credit. Like we’re not, we’re not at that level. Right? We just need sales, comparable houses to do it. When I looked in this case, there were 22 sales, 22 townhouses that sold in, within the last six months. Out of these nine properties that were on this report. Only four of them were on that report because the other five were longer than six months out.

Kelly:

Why would you do that?

Wynn:

I have no idea, but the

Sean:

One with the 10 and nine month sales.

Wynn:

Yep. Oh, better yet. Here’s another one. This one here was a two bedroom. So mine’s a three bedroom, two bath. One of these comps here that sold for $140k, by the way. So $140k was a two bedroom, two bath. Why he added a nonconforming house? Did the appraise report? I have no idea, but it’s on there. So once I got away from all the, all the old ones I went and I saw 22 houses, townhouses that sold within the, the area. I took away all the two bedrooms. I took away all the four bedrooms and I was left with 11. So I was left with 11 houses left that I could use to justify. Now here we are on the selling side. So we are trying to get the most amount of money for our seller.

Wynn:

So we want to pick out the best properties we can to justify why it would be. And so I followed the instructions. I typed up an email. Here are the comps I gave them the listings, I gave them the comps, I gave them the stats, all the, everything. I also gave my justification as to why I felt that these were not appropriate with a nice long soliloquy of boom, boom, boom, boom, boom. Got it all set up, sent it over there. She sent it up to the, they say, okay, well this is a two step process. One. They send it up to the board, to the appraisal board and then it goes back to the appraiser. So a couple days later, get an email back saying, yep, I reviewed everything. But I stand with my $175k value because basically you’re telling me how to do my job, which very, very few times you get to fight an appraisal and win. Very very few times because you’re telling somebody that they don’t know how to do what they’re doing.

Wynn:

But it’s our job to do everything we can for our client, our job to go down swinging. And if we get a low appraisal, we need to follow that quickly follow that process and do everything we can to get to, to, to come to a resolution. Now, would they go from $175k up to $206k? Probably not, but could we maybe get something right? Something’s better than nothing, right? Even if you can get something, maybe we can meet in the middle. This, this deal ended up falling apart over about $10,000. I, okay. We came down 10, they came up 10. There was about a $10,000 gap that, had this appraisal, maybe not gone all the way up, but say it goes from $175k to $185k. That’s maybe the difference is all you need.

Kelly:

And this was what kind of loan?

Wynn:

Keeping this. This was an FHA,uto keep this deal going. So,uyou don’t necessarily need perfect but better. And our job is to our clients and their client, our client’s best interest. So,uyeah, it’s a, it’s, it’s, it’s a lot of extra work. Ubut that’s what we, that’s what we do. I mean, that’s what we that’s our job. Ubut if you do get a low appraisal call immediately to the lender, see what the process is to fight it, follow to the T what they want. Some people want it emailed. Some people want a form. Sometimes there’s forms. You fill out this form. Sometimes you go online. Some, sometimes there’s like a portal. You go online and upload all your stuff. Uit all depends, but get it quickly, do everything you can, justify with not just a listing, don’t just send listings and nothing. I mean, right out of big paragraph. Here’s why, here’s why I don’t think this and this, and this was fair. This is why this and this and is better. Uyou know, and, and do the best we can to, to try and better

Sean:

Isn’t there a 3rd party who can, like, it sounded like you had six months comparables to better comparables. And this guy was using incomparable properties that were,

Wynn:

In my opinion, in my opinion, it was, they were old properties. One of them, wasn’t not a compare. Now I understand like if there were only three sales around, that’s one thing, but there were plenty of sales that he could have chosen.

Sean:

But there’s not a third party who can over cause the guy can just blow it off as like a

Wynn:

No, I mean, there, there is an adjudication process. I’m sure. To do that, but is that going to be within the time timeline of this deal? No. So like we could, we could I’m sure. Send a, send a you know, a strongly worded letter to the board and, and say, Hey, and in 6 to 9 months, when they get around to it, they may pull this up and say, Hey, you did it. But I mean, it doesn’t help us out now. And so I, I don’t wanna say we can’t do that, but like, it doesn’t, it it’ll serve a purpose in the long run. It just doesn’t serve a purpose now to try and help our client. But to your point though, you don’t want the same appraiser doing the same thing again and again, and again, if you have a bad you know, a bad appraiser, bad realtor, bad lender, if you have somebody that’s, that’s not doing what they should be doing.

Kelly:

Yeah. This would make me mad because you have 111 Birch circle at $217k.

Wynn:

Oh yeah. So you want the purpose of a profession versus a job is self-policing right. Military medical. We are in a profession, right? A lot of people don’t think of us as in a profession, but we self-police our own kind. And if there are bad apples, we need to make sure that we’re you know, helping everybody rise up with the sea level, whether it be other training. I mean, nobody’s trying to get anybody fired, but we wanna make sure this doesn’t happen again. And the justification, but yeah, there, and then my next question was this – of all of these you’ve chose nine. Why, why didn’t you choose this one here on page one? Why is this one on page seven? So 111 Birch sold for $217k. The comparable value is $220k. 20 Ashley Lane. So for $197k

Kelly:

So those not on these front 2 pages, it’s not weighted as heavily, correct?

Wynn:

It’s not it’s weigh as heavily, correct? It’s the back pages are more of a justification to back up the first page. Sorry. So cost of repairs. So the cost of the repair that’s gonna be on this report may not be actual cost of in real, in real. So Kelly had a question of going over just basic cost of repairing the basic typical repair list. So like

Kelly:

A window,

Wynn:

A window. So if you have to replace a window, windows have gone up. So a window replacement. It is, if you need to replace a whole window, you’re probably looking about $600, right? So every window you need to replace, now that’s a whole window. That’s the frame in everything. $600. because the window itself is gonna be $300, $350, and then it’s gonna be another couple hundred bucks to have somebody install it. So a typical window is about $600. Now if you only have to replace glass, so you have a foggy glass, a blown seal, right? Call a glass company. Rick’s glass. J is it J and L yeah. J and L they’ll come measure. And those are typically about $300 to, to they’ll come on site, take out the old or

Kelly:

Like three, $400, Big pane

Wynn:

That was a big I’m I’m saying your typical your typical 36 by 30. I mean your typical windows are on average about $300. Right? Somewhere in that ballpark. So these are rough estimates. Now they’re gonna come out and they’ll measure. And if it’s a weird size, they have to cut it. It might be a little bit more, but

Kelly:

This is a dumb girl question when, but what, when you’re looking at something like that and it says repair and or replace window and or glass, when, when, you know when you have to, what, what causes you to replace a whole damn window versus just the glass?

Wynn:

So for me it’s functionality. Okay. Right. So there’s nothing wrong with the window and it works. It opens, it stays open. You know, it locks, it has, I mean, it’s a good window.

Kelly:

Because those lock like the, what do you call ’em that keep the window up? The stoppers?

Wynn:

Yep. Yep.

Kelly:

You, you can’t replace those. It’s pain in the ass is what I’ve ran into a million times.

Wynn:

Like the, like when you open up window and it slams shut. Yeah. No, actually so Jesse there are, they tear apart people who know how to do windows, make you look like an idiot, cuz they’re like, oh da da da and it’s done. And it’s like, wait a second. What? those, there are adjustments in there and it’s spring loaded and a lot of times it Springs will break and they can just replace the spring. And then it works. So now, and the older windows are counterbalance. Right. You’ll see some of the old wood windows with like a pulley. Those are a little trickier because

Kelly:

Or and old one that’s like maybe rotted out or something.

Wynn:

Yeah. Yeah. If it’s, if, if it’s got the pulley on it, normally the pull, like it’s not worth break

Speaker 7:

Yeah the whole thing collapses. The window breaks. Pulley’s stuck.

Wynn:

It’s painted shut. Like it’s, it just, it’s not worth it. I would replace the window or if it’s rotten, like a lot of the on the exterior, you’ll see like rotten, the bottom part, kinda rotted out, just replace the whole thing. Some people Bondo and paint depending on the severity of the window, once again, it’s, if it says repair or replace, you can repair a window with Bondo and paint. Absolutely. Just have to make it functional. Right. You need to make it, make it look good, make it functional. Because if I’m buying a house for hundreds of thousands of dollars, I want a window that’s functional. And I’d be upset with a seller. And with a seller’s agent, if you know, they just put lipstick on a pig. So windows replacing the double pane glass about $300 a pop ish, replacing a window about $600 on average ish repairing wood rot behind underneath a you know, the the door door jam.

Wynn:

That’s typically about a hundred bucks on average to replace that. Somebody’s gonna come cut out some wood, put it in, caulk it, fill it, paint it typically about a hundred bucks to replace that. What are, what are some other repairs that are typical on amendments to address concerns? Chipping paint. So chipping paint paint is typically well when it’s, when it’s paint repaired depending on the patch. You can normally get away with a couple hundred bucks for chipping paint. If you need to paint like soffits if you’re going around in the soffit fascia are, are, you know, you know, to, to paint, repaint, that paint to match is typically $300-$400 to, to repaint that. Some wood repair, a lot of times you have some rotten wood around soffits and fascia or on siding typically repairing siding to replace about 30 linear feet of siding is about $600 to replace and repaint. Some of these older wood houses

Speaker 8:

Now are these Wynn Martin painter prices?

Wynn:

No, these are, these are contractor prices,

Sean:

30 linear like

Wynn:

Yep.

Sean:

The entire wall? Or,

Wynn:

Well, I’m just saying 30 linear feet per board. Not 30, not, not 30 linear feet. I’m saying if you get a, if you get the board and you need to patch in stuff, about 30 linear feet of patching. Not, not of, not of side. Yes, no, no, not a side. Let’s see, let’s talk blown-in insulation because I have the answer to that. We’re doing that right now. So blown in insulation in an attic an attic that is 600 square feet is probably gonna be about $800 to have a company come out and do blown-in insulation in an attic is about $800. Square feet, 600, 600 square foot attic, about 800 square, about $800. Leaks. A lot of times you have leaks under the sinks under the house. More times than not, it’s a leaky gasket. It’s, you know, parts, you know, those typically would run

Wynn:

$150, $200 for a plumber to come out, licensed plumber to come out and just kind of fix a couple things up. They have all the supplies on the, on their truck, so they don’t need to run to Home Depot. They don’t need to do all that. So it’s a service call, which is a hundred bucks and then, you know, an hour worth of their time. So $200 ballpark would have them fix the leaks around a house. If you need to repair a water line running a main water line is about $900, $800-$900 to have somebody come out and run a new water line from the meter into the house. Let’s see. What are some other things that we’ve had to repair? Paint. yeah, so I mean your, your typical amendment to address concerns, the bill is gonna be $1500 to $2,000 on average, right. To, to kind of do these things. Hey, how are you?

Speaker 9:

Good! I’m Dave with Ameris Bank Mortgage.

Wynn:

Hey, come on in, come on in. We’re finishing up here. Okay. So something to the things that I always, the way that I phrase this to my sellers is this, when you’re buying your next house, do you want that to be move-in ready? And they’re almost always like, of course I do. Yeah. Okay. Well, if you’re expecting that at, on that end, you’re gonna need to expect to sell yours in that same condition. Because everybody doesn’t want to pay a dime to sell their house yet. They’re gonna want them to do all their money before I buy that house. Now, if you don’t care and I’m gonna buy it as is and sell it as is, that’s cool. Or if I’m gonna fix it and fix it, but you can’t have an inequity of whatever and setting an expectation for the sellers to say, Hey, no matter how nice your house is, they’re probably gonna ask for some repairs, just know that it might cost, you know, on, on average $1500 plus or minus, maybe $2000.

Kelly:

What about lifted siding or lifted shingles? Can that get flagged on the appraisal?

Wynn:

Typical. Typically not typically, not.

Kelly:

Okay I thought it was weird that they didn’t ask for that.

Wynn:

Typically not no

Kelly:

On the front they’re all lifted. They didn’t

Wynn:

Ask typically not. Yep.

Kelly:

Like, like they’re lifted like bowed off the house where water intrusion. Like if I was a buyer’s agent, I would be like, you need to fix that because water can get in.

Wynn:

Is that a conventional loan? Yeah. That’s why see now if it’s a VA, it was a VA. They might flag it. If it’s a VA or an FHA,

Kelly:

Sometimes agents will do that. They’ll get all their little finicky repairs and the due diligence because they know an appraisal, and if the seller, if the contract says, oh, the seller’s gonna do $5000 or $6000 work, they’d be like, well I’ll just get her around the back end. Yeah.

Wynn:

I had a contract fall out when inspection report came, fell out. I was privy to some of the repairs that needed to happen. And before we took the next contract with there doing the home inspection right now I got with the seller. I was like, Hey, here’s some things that they found that are gonna be significant that anybody’s gonna find. So let’s fix th,em now before we take another contract and make sure the home is ready because we didn’t know before what some of these issues were, now we do. And so we wanna make sure that the home home’s good. Because once again, we wanna sell a good home. We’re not, we’re not in the business of selling bad homes to people. We want to, we wanna do what’s right? Yeah.
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