Help! Home inspector and appraising issues.

farmingfisherman

farmingfisherman

Well-Known Member
So we are buying the home we have been renting for the last decade and need to have both a inspection and appraisal done on the home. I've got a tent setup in our spare bedroom with one light and plant in it. It's not a huge operation (less than 1000 watts) total for all fans and the light. Is this something that might jeopardize us being able to buy our house? Do lenders care? We live in a legal weed state but with how the wonderful Feds still feel about our hobby and growing it has me worried. Anyone ever dealt with this one?
 
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father nature

Well-Known Member
The inspector wont care. He's working for YOU. They are there for roof leaks and circuit breakers. Whats in your house is irrelevant.
Same with the appraisal. Whats in your house that your taking with you has no bearing on value.
They do however take pictures that they put in the report. If they seem cool tell them not to get the tent in the pic. I would throw something over it either way to hide it. No sense in advertising it
 
Johnny Lawrence

Johnny Lawrence

Well-Known Member
^ This

I'm in a legal state and recently had to have appraisals done on my two properties.

"Are these . . . ?"

"Grow rooms? Yeah."

"Oh, okay. Cool. Where's the panel?"

I had it happen to me as a renter about 15 years ago. Fucking nightmare having to shove everything into a Uhaul, just to rebuild the whole thing 2 days later.
 
xtsho

xtsho

Well-Known Member
What's more important? Getting the loan for the house or one plant. There are usually clauses in loans that state the loan can be called for illegal activity. Lenders still follow federal lending guidelines and regardless of being in a legal state cannabis is still illegal under federal law. And if you are getting an FHA loan then definitely it isn't going to fly.

The appraiser does not work for you they work for the bank to make sure that the house is worth what they're loaning you to make sure that the loan is collateralized. If they find that you are violating federal laws they may very well decline the loan.

It's up to you and apparently many think it's no big deal. I myself wouldn't take the chance. Most banks will not lend when there is an active grow operation on the property. It is also dependent on the appraiser. Some are Don't ask Don't tell while others will document everything in their appraisal they prepare for the lending institution.
 
Johnny Lawrence

Johnny Lawrence

Well-Known Member
xtsho said:
What's more important? Getting the loan for the house or one plant. There are usually clauses in loans that state the loan can be called for illegal activity. Lenders still follow federal lending guidelines and regardless of being in a legal state cannabis is still illegal under federal law. And if you are getting an FHA loan then definitely it isn't going to fly.

The appraiser does not work for you they work for the bank to make sure that the house is worth what they're loaning you to make sure that the loan is collateralized. If they find that you are violating federal laws they may very well decline the loan.

It's up to you and apparently many think it's no big deal. I myself wouldn't take the chance. Most banks will not lend when there is an active grow operation on the property. It is also dependent on the appraiser. Some are Don't ask Don't tell while others will document everything in their appraisal they prepare for the lending institution.
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I didn't have any issues.
 
farmingfisherman

farmingfisherman

Well-Known Member
father nature said:
The inspector wont care. He's working for YOU. They are there for roof leaks and circuit breakers. Whats in your house is irrelevant.
Same with the appraisal. Whats in your house that your taking with you has no bearing on value.
They do however take pictures that they put in the report. If they seem cool tell them not to get the tent in the pic. I would throw something over it either way to hide it. No sense in advertising it
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We are buying the house. It's the appraisal process and the loan which makes me nervous. Fanny and Freddy being Fed loan programs. Agree with you on the inspector, we hired them so should not be a issue.
 
Mrs. Weedstein

Mrs. Weedstein

Well-Known Member
There’s got to be a way to disguise it for the short period he’s there, even if that means turning off the fans for a little while so there’s no noise.
 
xtsho

xtsho

Well-Known Member
farmingfisherman said:
We are buying the house. It's the appraisal process and the loan which makes me nervous. Fanny and Freddy being Fed loan programs. Agree with you on the inspector, we hired them so should not be a issue.
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I'm not saying you'll have an issue but it is possible.

An inspector and appraiser are two different entities. An inspector inspects the house for any potential structural problems, electrical, plumbing, mold, etc... The appraiser determines whether the home is worth the purchase price.
 
farmingfisherman

farmingfisherman

Well-Known Member
xtsho said:
I'm not saying you'll have an issue but it is possible.

An inspector and appraiser are two different entities. An inspector inspects the house for any potential structural problems, electrical, plumbing, mold, etc... The appraiser determines whether the home is worth the purchase price.
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Thanks... Agreed it would be a stupid reason for us not to get our house. Guess I need to get busy and start pulling things down.
 
xtsho

xtsho

Well-Known Member
farmingfisherman said:
Thanks... Agreed it would be a stupid reason for us not to get our house. Guess I need to get busy and start pulling things down.
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It's a tough call but if it was me I wouldn't take the chance. You would probably be just fine but why take a chance for a plant? The appraiser will photograph every room. And with cannabis being illegal federally I don't see how it would not disqualify you for a federal loan if illegal activity was found.

But with Covid you might not even have a walk through appraisal.

www.forbes.com

Fannie Mae And Freddie Mac Adopt “Alternative” Home Appraisals Due To Coronavirus

The Federal Housing Finance Agency announced this morning that it is instructing Freddie Mac and Fannie Mae to use alternative home appraisal methods until May 17.
www.forbes.com www.forbes.com
 
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spek9

Well-Known Member
xtsho said:
It's a tough call but if it was me I wouldn't take the chance. You would probably be just fine but why take a chance for a plant?
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I agree with this. Most likely, nothing would come of it, but with it gone, there's no risk at all, and if things work out, you can grow all you like in your now-owned home.
 
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father nature

Well-Known Member
It's in a tent correct?
They cant open the tent just like they can't open your wifes panty drawer.
I'm going with non issue but I get the nerves.

And I wouldnt break anything down. You'll obviously have a scheduled time for them to come in the house. Stick the pant outside somewhere safe from sight while they;re there and move it back when they leave.... You're growing lettuce in the tent and who are they to question you...not that they ever would. They are there to look at your house not your garden
 
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