There is nothing unethical about what the appraiser is asking to be done. He is doing his job, covering his bases. Now the lender can override the appraiser but they are not likely to do that since it could affect the selling of the loan.

Aaron Mtuanwi This is a common occurrence where an appraisal will stipulate the value based on completed repairs. The remedy is to fix the issues and make the repairs.

there is not time limit for the appraiser to finish the appraisal...

the remedies are to fix it; negotiate the price; say no....

I don't see a ethics issue here.  Is the lender requiring these repairs be made?

Is it an FHA or VA appraisal. If so, they are fully in their rights to insist on certain work being completed. Appraiser has every right to report what he/she sees. I believe it's really the lender who is now insisting that work be done to approve the loan.

It depends what type of mortgage the buyer is getting, if FHA, VA or USDA than it is common. This is why i like attending appraisals on my listings to head off surprise issues. I have noticed though appraisers over stepping on conventional loans

No not that I know of. It would be a problem if the house did not have water running as I've seen appraisers take pictures of water running at the sink to prove habitability.

The house has to be habitable in order to get a loan.

Aaron,

I think all the answers are here.  We wish you success with this transaction.  A

Sounds like an inspector's job. Need to fix.

Sounds like you need to get the sellers attny involved.

Or they can just say NO to the list.

If the seller is a Bank, then I must assume that it's a foreclosed property. There are always addendums that banks required buyers to sign off stating that they are buying "AS IS". If the appraiser is requesting repairs, then it becomes lender required repairs. Appraiser should have known this was a foreclosure. 203K, rehab loan maybe a solution if it's an FHA loan. Bank might only want to deal with a CASH deal instead of conventional financing.

The others have answered.

Depends on the type of loan.  Also, if the bank is asking them to also do an inspection then it should be done, but that should be dtipulated before the appraisal is done

There is nothing unethical. No lender or appraiser will sign off on a property without a hot water system.

Depends on the financing.

On a VA or FHA loan, they are very particular about the condition of the property.  If you're going conventional, not so much.  In this instance, I'd side with the appraiser here since I doubt a bank would want to loan on something that has foundation issues.

A review of the code(s) of ethics or similar that the appraiser is bound to would be required in order to answer this question, at least in part.

Lots of answers already - best of luck with this one

I think it's within his scope of work.