Are appraisers being too picky about calling out for repairs on FHA loans? I cannot speak for all appraisers by any means, but from an appraiser’s standpoint I’ll say that FHA has strict guidelines they expect their appraisers to follow. As a Certified Real Estate Appraiser in the Sacramento area, I have a HUD checklist that I go through while at a property, and if there are items HUD won’t accept, I have to call them out. Things like chipping paint, an inoperable heat system, a shattered window, or even a broken garbage disposal, can all hold up an FHA loan if not properly cured.
It can be frustrating to think such a minor repair can be a deal killer for a loan, but at the same time, a good loan officer, solid lender, and superstar real estate agent will be able to cooperatively deal with issues like this. FHA repairs are normative in the course of business, and when you work with knowledgeable professionals, these things can be anticipated, maybe negotiated with the seller, and hopefully remedied (of course this might be difficult if the property is bank-owned, and the bank is unwilling to put even one cent back into the foreclosed property). See a video below that I shot during an FHA appraisal inspection (recorded with myTouch 4G cell phone):
Let me know if you have questions, insight, or any real estate appraisal or valuation consulting needs. If you are a local real estate or loan office in the Sacramento area, I’m happy to come and give my FHA presentation. Contact me at 916.595.3735, on my company website, or on Facebook.