When people think of peeling and chipping paint being a problem, they tend to associate it with only FHA properties. These pictures are from a recent appraisal of an early 1900’s duplex that had a ton of peeling and chipping paint around the entire house and garage.
This appraisal was for a conventional refinance, which lenders don’t typically require the owner to repair. However, they did want to know the cost to cure, and have the appraisal adjusted accordingly. In this case it was about $20,000 to $30,000 to repair.
If this appraisal would have been for a sale, the lender may or may not have required the property to be repaired. So keep in mind that if a property needs extensive repairs, that the sales price should reflect those repairs, because the appraisal most likely will.
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$20k – $30k paint job?? Was that an actual quote or is that an appraisal formula?
With the new lead based paint laws, I suppose lead abatement could turn a $1,000 paint job into $20,000 to $30,000…
Craig, The home owner actually had estimates as high as $40,000. All the new rules and regs have turned a regular paint job into a career.
The article does not list the reason for the expensive painting cost. There is the issue of hiring an EPA RRP certified contractor if that exterior comes up positive for Lead based paint and odds are it will. Exterior LBP containment during repair is not cheap due to all the regualtions.
That’s a great point David, people forget about all of the added costs of meeting all of the new regs.
Paint jobs are always more expensive on older houses with more character too. There is so much more work to do as opposed to simply spraying stucco. $20-30K hurts the wallet though for a paint job. I’d rather buy a car. 🙂
Ryan, I couldn’t agree more. This particular homeowner was thinking of spending 40-50K on maintenace free siding. That’s a lot of ching for siding.