Appraise This

Here are just a few quick reminders about FHA Appraisal requirements. 

The FHA home condition requirements have been reduced, but there are still certain criteria which must be met.  The emphasis of FHA is on the Safety, Security and Soundness of the property:

Safety - protect the health and safety of the occupants 

Security - protect the security of the property

Soundness - correct physical deficiencies or conditions affecting structural integrity

Here are a few things to remember:

1. All utilities must be turned on!!!  This is the number one reason that I have to go out twice on an FHA Purchase Appraisal.  FHA requires that the Appraiser test the electrical, plumbing, and mechanical elements of the property.  Often on Bank Owned properties the utilities have been turned off.  It is important to work with the Realtors to have those utilities turned on prior to inspection.

2. The attic space and crawl space must be inspected.  This means that the access points must be clear for the Appraiser to perform this inspection.  I bring my own ladder, but if you are a homeowner getting an FHA appraisal it is always nice to have that access point ready with your own ladder, or at least ready for me to bring my ladder in.  I know our attic access is in our closet over our clothes; we have to put a sheet over our clothes before opening the access or we get yucky insulation all over!

3. Due to past use of lead in paint, homes built prior to 1978 cannot have ANY peeling paint.  This includes interior and exterior.  It also includes any sheds, fences, outbuildings, and pretty much anything, anywhere on the property.  It does not matter when the other improvement was installed; if the house was built prior to 1978, there cannot be peeling paint.

4. There cannot be broken windows.  Seems obvious, but I have had to reinspect numerous properties after they replace a broken window...

This does not cover all the requirements of FHA, but these quick reminders may help your FHA Appraisal go smoothly!

For all the HUD documents regarding the valuation of single family homes, see:

http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4150.2/index.cfm