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Why an FHA appraisal matters to buyers of a home, not just the sellers! Helpful tips for Macomb County MI home buyers and sellers

April 5th, 2012 · No Comments · Appraisals in Macomb County MI, fha mortgages and first time home buyers, tips for home buyers, tips for home sellers

A point of confusion for home buyers in my area, as well as home sellers, is the role of an FHA appraiser.   The FHA appraiser not only determines fair market value for the home but he/she will also take a peek to determine if there are any issues to what FHA refers to as the 3 S’s: Safety, Soundness and Security.

I came across a blog written by an appraiser in Minnesota, and the same standards would apply here in the Metro Detroit area.  Here is a link to the appraisers blog.

There is a HUGE difference though to your own home inspection (please don’t skip this important step when you are purchasing a home) and the FHA appraisal. A home inspector that you hire to represent YOU will typically spend 2-3 hours in the home working their way from top to bottom inside and outside the home.  An FHA appraiser has a checklist of the items within the Safety, Soundess and Security that he/she looks for, and will spend approximately 30 minutes or so in the home.

When I am with home buyers and I know they are using an FHA mortgage to purchase their home, I am looking at the homes with a different set of eyes:  I am looking for flaking, peeling paint in a home built before 1978, large trip hazards in cement outside or carpeting /tiling inside, a roof that appears to be on it’s last years, etc.   Here’s an example of what I know by experience will be flagged by an FHA appraiser and the lenders underwriter:

Flaking & peeling paint and FHA mortgages in Macomb County MI

If you look at the bottom of the window panes you will see flaking & peeling paint. The FHA appraiser assigned to perform the appraisal took a photo of it, and included it in his report.  The buyers lender required that the flaking paint be scraped off and the window re-painted.  This took very little time to do and when we were finished the appraiser came back out to take photos and verify that the work was done.

If the whole garage was flaking and peeling, then the whole garage would have had to have been scraped and painted.  **If the home and garage were built prior to 1978.

Ask your buyers agent what to look out for while you are viewing homes if you are using an FHA mortgage to purchase your home.  Also remember that the FHA appraisal is much different than your own home inspection!

Kris Wales –  A partner for your real estate needs in Macomb County MI
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Important copyright information: All photos were taken by Kris Wales. Do not copy and use photos for your own use, whether it be for personal or commercial purpose. All articles were written by Kris Wales. Once again, do not copy and use for your own purposes. Important disclaimer: Views expressed on the blog by the author and commenters do not express the views of Keller Williams Realty. All information contained is deemed to be reliable at the time of posting but not guaranteed.