An empty pool might seem like no big deal, but it doesn’t do much to propel a loan forward because of the challenges it presents. What are the risks?
Someone can fall in and break a [fill in the blank].- Standing water is an invitation for mosquitos, which then increases the risk for mosquito-transmitted diseases such as West Nile Virus.
- The swimming pool could sustain damage from not being filled over time.
- Lastly, how can you really know if a pool is working properly if it’s empty?
I recommend talking with a trusted loan professional to understand specific lending guidelines, but I will say in light of the risks above, most lenders will want to see pools filled and functioning properly because of the health and safety risks associated with an empty pool. I’ve had a couple of instances lately for both FHA and conventional loans where my client wanted me to head back out to verify repairs were made to a pool (after I noted green water and/or missing pool equipment). I am not a pool specialist of course, so I am very careful about what I can and cannot verify as a real estate appraiser.
I’d be curious to hear your experience with pools and real estate, and also if you have any other risks to add to the list above.
If you have any real estate appraisal, consulting, or property tax appeal needs in the Greater Sacramento Region, contact me at 916.595.3735, by email, on our appraiser website or via Facebook.
Question from Buyer: Hello. I stumbled upon your video because I made an appointment to look at a house and the Realtor told me she hoped I had a conventional loan because an FHA loan has issues with the chipping paint on the outside. I have no idea if the paint is lead (the house was built in 1940 so there is a possibility). What are the options if the FHA loan is what I was approved for but don’t have the money to have the house painted? Could money be held in escrow to have the house painted or would the seller maybe pay to have it painted? Any help you could give me would be great! Great video!
that the issue needs to be cured – no matter how it gets done. Any paint surface that is defective (flaking, chipping or peeling paint) will have to be properly remedied and sealed. There won’t need to be any lead-base paint test. 3) A third option actually is to do an FHA 203K loan so you can get certain repairs like this taken care of without spending money out-of-pocket. You’d actually buy the property and then specific predetermined repairs would be made after the close of escrow from money bundled in your loan. Not all loan officers and brokers handle 203K loans or are good at doing them, so make sure you work with someone who knows about 203Ks. I’m glad to refer someone trustworthy to you.