Property condition
Look beyond the paint color.
An older kitchen is different from an active roof leak or exposed wiring. The concern is how condition affects value and the requirements of the assignment.
- Roof and moisture: active leaks, water damage or serious roof disrepair.
- Possible structural damage: foundation movement or sagging floors that may need a specialist’s assessment.
- Unsafe or nonworking systems: electrical hazards, heating or plumbing problems.
- Damage or unfinished work: significant pest damage, incomplete alterations or missing essential components.
These are reasons to investigate, not automatic failures. Requirements depend on the report, lender and loan program.
“Subject to repairs” means the appraisal relies on specified work being completed. The lender may require completion evidence or a follow-up inspection.
Fannie Mae distinguishes minor issues from safety, soundness or structural deficiencies. Its condition guidance and completion requirements apply to loans following its rules; other programs differ.
Value and financing
A low value is a different problem.
The agreed price is not a guarantee of appraised value. Recent comparable sales, the home’s size, location and condition all matter. A carefully maintained home can still appraise below the contract price.
A lower appraisal may affect the financing available. Ask your lender how the result changes your loan, then discuss any price or contract decisions with your real estate agent or attorney.
The Consumer Financial Protection Bureau explains what a value below the sale price can mean for a buyer.
Your next step
Find out what needs resolving.
Before spending money, ask whether the concern is value, a required repair or a specialist’s inspection.
- Before the visit: clear access, gather improvement records and share known leaks, damage or unfinished work. You do not need a showroom home.
- After a lender’s report: ask the lender how to submit factual corrections or additional sales information, and what evidence it needs for repairs. A separate private appraisal does not automatically replace its report.
- For an estate or family decision: explain the purpose, valuation date and deadline at the start. A private valuation is not automatically subject to mortgage requirements.
Repairs can address condition concerns; they do not guarantee a particular value.