For many couples, the marital residence is the largest asset obtained during the marriage. Whether you or your spouse wishes to retain the marital residence after the divorce, it is important that an accurate value is obtained for purposes of property division. There are typically two options regarding the home.
- The property can be sold and the proceeds divided.
- If either party wants to remain in the home, they can pay a settlement to their spouse.
In either case, an appraisal is needed. In scenario #1, an appraisal should be obtained to help determine a listing price in an effort to limit the time the house will be listed for sale and maximize the selling price. In scenario #2, the judge will not make a ruling on the settlement or division of property without an appraisal by a certified real estate appraiser. As to who is responsible for the appraisal fee remains at the discretion of an agreement between both parties or court ordered by the judge.
It can be very frustrating for a homeowner or real estate agent when you get feedback from the lender that there are certain items that must be repaired before closing. That’s why it is important be aware of minimum FHA appraisal standards before a real estate appraiser visits your home. The following are the most common repairs I encounter in the Chicago area for which you should be prepared. Many of these could be corrected prior to the appraisal inspection for relatively little time and cost. This will insure that additional inspections are not required and prevent any re-inspection related delays.
Chipped/Peeling Paint: As per FHA, any chipped or peeling paint in homes built prior to 1978 must be corrected. That means the defective paint must be scraped, sanded and repainted to comply. Also, all of the paint chips must be picked up off the ground and disposed of properly. With all of the Cape Cod, Bungalow style homes in the Chicago area, this is one of the issue I come across most. 87% of homes built prior to 1940 contain Lead-Based Paint. See the this link to the EPA website for more information on Lead-Based Paint.