What Does It Mean When an Appraisal Is Subject to Repairs?

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• You typically must get a home appraisal done when you're borrowing to buy a home.
• An appraiser may make the appraisal subject to repairs.
• This would mean that the repairs must be made prior to closing or money must be held back in escrow for them.

When you get a mortgage to buy a home, you typically need to have the house appraised. Your mortgage lender will mandate an appraisal to find the fair market value of the house. Lenders want to know this because the home guarantees or serves as collateral for the loan, so they need it to be worth enough that they could sell it and get back their money.

In some cases, your home appraisal will come back "subject to repair." If this happens, what exactly does it mean for you?