There are many issues that may cause problems when having a FHA appraisal completed. However, there are some that typically appear more frequently than others. You should be aware these typical issues because most sellers or realtors will face at least one of these issues. It is a good idea to be prepared and make corrections ahead of time by having an idea of what the appraiser will be looking for.
During the appraisal inspection the FHA appraiser is particularly interested in checking for the three S’s – safety, structure, and soundness. Everything on the appraiser’s checklist is meant to make sure the property is safe and habitable. Sometimes the items found can seem a bit nit-picky but it is better to know any possible issues that may turn out to be a terrible surprise when the roof caves in or the structure in the basement rots away.
1. Roof condition — Regulations state that the roof must not leak or allow for any moisture to enter the home. The roof should appear to be physically function-able for a minimum of two additional years. When this is not the case the appraiser must note whether the roof needs repair or requires re-roofing.
2. Wet basement or cracking — The main thing when inspecting the basement is to see if it is structurally sound and to make sure it is dry. Dampness could indicate possible mold or structural problems. Visible signs that raise red flags are cracking, mold and dampness.
3. Damaged or exposed electrical wiring — This may seem to be an obvious issue, but you would be surprised by how many homes may have visible electrical issue. Older homes and homes that were bought to be remodel do-it-yourself projects often have frayed or exposed electrical wiring and this will be an FHA issue. Also, don’t forget to check your attic as quite often open electrical boxes are found that need to be covered or enclosed.
4. Chipped/Peeling paint on pre-1978 homes/structures— A lead paint issue may exist if the a structure was built prior to 1978. Homes that have been in a family for a typically more than a decade or more may have this issue and the homeowners never even realized there was an issue. Any chipped or peeling paint found on homes prior to 1978 must be scraped, re-painted, and sealed including removing any subsequent paint chips from the premises that may have been laying along the ground.
5. Termites – A termite inspection is typically not required unless the appraiser observes signs of active wood destroying insects. If signs are of wood destroying insects are observed the appraiser must call for a termite inspection to be completed.
Last half of the top 10 items include:
6. Non-functioning or improperly wired outlets
7. Not able to access all areas of dwelling or property including the crawl space, attic area and garage
8. Utilities (water, electricity, and/or gas) not turned on
9. No safety quick release feature on bedroom window security bars
10. No smoke alarms and/or carbon monoxide detectors outside bedroom areas. This typically is based on state or local guidelines/code.
Getting any of these items fixed/repaired before the appraisal inspection may not be possible but being aware of the most common repair items that appraisers are looking for may help you understand the process and help make for a smoother purchase/loan transaction.
I hope you found this helpful – if you have any other questions about anything related to the appraisal process please comment below or contact us directly be phone or email – we look forward to serving you!
California Home Appraisals specializes in appraisals for divorce, bankruptcy, estate, date of death, tax appeals, pre-listings, and more throughout the greater Sacramento, Roseville, Rocklin & Lincoln areas. For more info contact us at (916) 521-5949, visit our website at CalHomeAppraisals.com, or email us @ gary@calhomeappraisals.com.
