pass me that dead rat

By
Real Estate Appraiser with Sulamo Appraisal Service

            

 

Blogs and articles abound with tales of how appraisers are "killing" deals.  Interesting.  .  .  .  .  We do not hear how underwriting guidelines are steering the deals into the rocks.  Appraisers do not write the rules; just have to abide by them.  There are Federal, State and individual funder layers of "rules" that must be adhered to.  How familiar are you with them?

 

FHA requires the appraiser to do a "head and shoulders" inspection of the attic and crawl space.  Is this area clear so the appraiser can do their job?  FHA requires the appraiser to reschedule the appointment to do the appraisal if these areas are not accessible.  FHA rules state the appraisal cannot be made "subject to" re-inspection of these areas. The attic and crawl space (if there is one) must be inspected prior to writing the job.

 Today after clearing away the sellers clutter and heading to the attic access the seller cautioned "there are rat traps set just inside the access".  Lucky me it was "full".  The owner said "oh, can you pass me that rat while you're up there."

 Understanding the basics of what the requirements are for the appraiser will help you to insure the property is ready and available for inspection.  Working together with your fellow real estate professionals can clear the way of obstacles to a smooth close of your deals.

 Underwriting guidelines typically call for 2 closed sales in the past 90 days and one within the past 6 months and 2 pending or listings.  If you set your list price on older data realize there may or may not be current usable comparables for your appraiser.

 Better communication can result in a better experience for all.  Keeping up on current guidelines will allow for "deal breakers" to be corrected before they become an issue.  If you're located in the Sacramento area and have a question - call me!

 

Comments (5)

Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Two inspections today, one with rats the other without.  We're batting .500 this Thursday!

Mar 04, 2010 11:54 AM
Joseph Keech
Blue Atlantic Properties - Leland, NC

It's so much to keep up with! Everyone has to stay on top of their professional requirements, and then some.

Mar 04, 2010 11:57 AM
Brian L. Nelson
AllTrade Home Inspection - Lake Tapps, WA
Seattle WA - Tacoma WA Home Inspector

All this time I thought Home Inspectors were the dreaded deal Killers. The truth comes out!

Mar 04, 2010 03:42 PM
Michael J. O'Connor
Diamond Ridge Realty - Corona, CA
Eastvale - 951-847-4883

Thanks for a lesson about FHA appraisal.  I wasn't aware of the head & shoulders requirement so now I'll need to make sure to be prepared.

Catchy title - I just had to read!

Mar 06, 2010 03:09 AM
Bryan McDonald
Property Value Appraisals, Inc - Warner Robins, GA

What a crazy story, I can't believe they asked you to pass them the dead rats!  You are exactly right about appraisers not making the rules but having to abide by them.  Underwriting requirements have become unbelievable strict.

Mar 10, 2010 11:30 AM