McKeever Real Estate

HUD has enacted significant changes in the appraisal process for an FHA loan. We have prepared a list of suggested preparations which can significantly reduce the amount of time an appraiser must spend in a home as well as to reduce the number of re-inspections necessary to comply with these HUD mandates. This is not intended to be a complete list, and there may be other conditions found upon inspection that could affect the reporting and require correction. However, being proactive in correcting obvious deficiencies will spare time and expense.

•The appraiser must check representative smoke detectors. Please ask sellers to be sure they are working and accessible.
•The appraiser must have access to the attic , via scuttle and/or drop stairs, as well as access to crawl spaces. Please ask sellers to clear the access to the scuttle. If the scuttle door is located in a closet, please clear the closet contents. Please leave the scuttle door open. The appraiser will not break the seal of a sealed scuttle, nor clear the area of personal belongings due to issues of liability. A return inspection will be required if these areas are not prepared.
•Please ask sellers to disengage computer settings on automatic thermostats (set back type). The appraiser must check the operation on heating and cooling systems and will not want to alter the system settings.
•Garage doors must be tested for function and reverse function. If the reverse does not work, please ask sellers to repair or adjust or inform the appraiser of the problem to avoid damage to garage doors during the testing process.
•The appraiser must test representative electrical outlets and switches. Please ask sellers to make sure all have operable light bulbs. In a vacant house, utilities must be restored to the building. The appraiser must disclose whether utilities are on/off.
•For properties which include a well and/or septic, please ask sellers to indicate the location of the well head and/or septic drain field, if known.
•The appraiser must test windows for proper operation. If windows are painted shut, please ask sellers to free them and make sure they are operating properly. In addition, security bars must have inside safety release latches allowing ingress/egress in the event of an emergency.
•Homes built prior to 1978 which have peeling or flaking paint on any surface (exterior & interior) will be called for repair. If these areas are scraped, primed and painted prior to the appraisal, time and expense will be spared. At a minimum, exposed deficiencies must be sealed with paint.
•Special Note on Appliances: The Valuation Protocol (page D-26 of Appendix D, Handbook 4150.2) requires the appraiser to note the appliances that are present in the home at the time of inspection and whether the appliance is considered personal property or part of the real estate. The protocol further directs the appraiser to treat non-functioning appliances/equipment as deferred maintenance in the valuation process.

The manner in which an appliance is attached to the dwelling would determine whether or not an appliance should be considered part of the real estate. In some real estate markets, it may be typical and customary for certain appliances to convey with the real estate. In these situations, those appliances should be considered real estate and treated as such in the valuation of the property.

In some cases, such as that of REO properties, all or some of the appliances may be missing and there may be damage to the floor, wall or ceiling finish as a result of the removal. Depending upon the magnitude of the damage, the appraiser is expected to treat the damage to the home as deferred maintenance and reflect such in the conclusion of value. Missing appliances must be addressed by the appraiser in the valuation process, particularly when the comparable sales included a full complement of working appliances