Here’s the scenario: Your property has just been leased and the buyer is financing with a VA loan. Soon after, hopefully, the appraiser visits your property to complete the interior / exterior view. That’s right, it’s a visualization, not an inspection. The home inspector is a different person, but we’ll save that topic for another article. Okay, let’s get back on track. So the appraiser takes a few measurements, takes notes, lots of photos, turns a few lights on and off, turns on a faucet or two, flushes the toilet, asks you a few questions about recent improvements, thanks you, and speeds to the next appointment. Now, a few days or weeks later, you receive a call from your real estate agent and are informed that your property does not meet the minimum VA property requirements due to faulty paint. You are informed that since your home was built before 1978, the faulty paint must be repaired for the buyer’s loan to continue. What does that mean? Well first, let’s tackle what faulty paint is and why it is such a major problem.
Defective paint is any previously painted surface that is now chipping, peeling, scaling, bubbling, or chipping. Before 1978, lead was added to paint. You’ve heard of lead poisoning, right? Lead poisoning can cause many health problems, including mental problems, seizures, coma, and even death. Children were at higher risk, as they are more likely to put things in their mouths; however, lead could become airborne (dust) or contaminate water sources.
Okay, now you know lead is bad, but you might be thinking, “Hey! I repainted my house just a few years ago. The paint I used was made lead-free, so this shouldn’t be a problem.” It’s a good try, but since there is a chance that lead was initially used in your home, no one is going to take that risk. Defective paint will need to be repaired. So, go get a brush and apply some paint over the bad areas, right? Wait, not so fast! It must be done correctly, or the appraiser may still reject the repairs.
There are several ways to fix the problem of bad paint. First, you can have a lead-based paint test completed, which is unprofitable so rarely done on 1-4 unit residential real estate transactions. In fact, in over 20 years working in this industry, I have not seen a single case where this has been done in lieu of remedying faulty paint. The next option is to hire a professional painter who specializes in the repair of lead-based paints. The last option is to repair the faulty paint yourself. In any of the repair options, the faulty paint must be properly removed from the surface and all debris must be thoroughly cleaned without leaving a trace on the floor. The surface must then be repainted.
If the problem of defective paint is widespread, it is recommended that you hire a professional company that specializes in lead-based paint removal to complete the remediation project. If done incorrectly, lead could contaminate the surrounding air or water and expose others to this poisonous substance. If you are working with a real estate agent, they should have the knowledge and experience to advise you on your action plan.