Appraisal Blog

Many homeowners (and some realtors) don't realize that when doing an FHA appraisal inspection, the appraiser is required to check certain things that are not typically required for non-FHA transactions. Below are a list of basic things that you as a homeowner or realtor can do to avoid delays and 2nd trips by the appraiser.

1. Electricity and water utilities must be turned on. (It is not the appraisers responsibility to deal with breaker boxes or water utility valves. These utilities should be up and running when the appraiser walks in) 

2. Heating / Cooling must be functioning.

3. Plumbing and electrical fixtures should be functioning properly.

4. Attic must be accessed.

5. Security bars on all bedrooms should be removed, or emergency release latches installed.

Also, if there are any cracks in the foundation or any observable problems with the structure (foundation, roof, wall separation, etc.), it would be helpful to have documentation from a professional to identify and provide opinion on the needed remedy for the issue.

When all of these items are address beforehand, the possiblility of delay is greatly minimized.

It is amazing that some clients still put estimated values on the appraisal orders. One of the reasons HVCC went into effect and now FHA adopting some of HVCC standards, is to give appraiser's more independence and have greater objectivity in completing assignments.

If you are a financial institution and still doing this, please know that you are not "helping" the appraiser by giving us a value to "shoot for". Let us do our job objectively and ethically. Please let your loan officers know that HVCC and FHA strictly forbids any communication about value or any other aspect of the appraisal with the appraiser. We are now told to report any of these incidents to the respective authorities. This may result in cancellation of the order and in extreme cases an investigation.