04-27-2011 06:26 PM
How tough is it to deal with FHA appraisals if you're a seller?
Must one meet more stringent requirements? Is there also a home inspection on top of that? As a seller, I'm curious about other people's experiences. Thanks!
04-27-2011 08:51 PM
The FHA appraiser does an inspection as well as appraise. This does not take the place of a home inspection that the buyer will have done.
I've only seen this on the buying side with my young relatives. While I attended the home inspections I wasn't present for the appraisal. In retrospect I should have and will do so the next time it comes up. The FHA appraiser noted things that need to be done in order for the loan to fund. Mostly it was health and safety issues. Things like the water heater vent wasn't connected correctly, the stove didn't turn on, glass door to the garage (supposed to be a fire wall) and bathroom vent fans that vented to the attic and not outside. All the things plus more were on the homebuyers inspection report. With each of the homes it was under $500 for the repairs.
Some realtors have a bias about FHA which is too bad. A good realtor who understands FHA requirements can give you a general idea what the inspector will call out. Most are things that a seller should take care of. Sometimes the inspector goes overboard and a good agent with FHA experience knows how to deal with it.
Inspections can be crazy even with conventional financing. Good agents help their buyers understand what the items on the inspection report means. This is why I tag along with my young relatives. I'm more concerned with dry rot and structural issues than with the cabinets knobs and old appliances.
We sold a home to first time buyers who freaked out over the home inspection report which was overboard and incorrect at times. The buyers agent met with us to discuss things. I had my chimney sweep document that the fireplaces were indeed operational and the chimney was not made of wood as the inspection report stated. The fixes were altogether under $100 and that included hiring out one project.
04-29-2011 01:44 PM
I'm in the process of purchasing a home using an FHA loan and just had my appraisal done a couple of weeks ago. Overall, it wasn't a bad experience. I was so nervous about the whole thing, but in retrospect, there really wasn't much to be worried about. Really, the biggest difference between an FHA appraiser and regular appraiser is that the FHA appraiser can recommend to the lender that the loan must be contigent on certain things being fixed before approving the loan and those things are ALWAYS safety related. If the carpet is dirty or the closets are missing doors or other "non safety" related issues exist, it may affect the value of the house, but that would be true for any appraiser. Those kinds of issues are not as concerning for FHA appraisers. As long as your home is in good condition overall, there really isn't too much to worry about. If there are any safety related issues, the seller & buyer are probably already planning to have them fixed before closing anyway (at least if the buyer is smart). We had our inspection done before the appraisal so we caught any possible issues ahead of time and resolved them before the appraisal, so fortunately, there were no hiccups. Hope this helps!