Top 10 Reasons Properties Fail FHA Appraisal Inspections

By
Real Estate Appraiser with Appraisals Guaranteed

Top 10 Reasons Properties Fail FHA Appraisal Inspections

 

It's that time again: the top ten at ten!

Or maybe I'm on my second cup of coffee.

Either way, you benefit.

 

Here they are in no particular order:

 

10 - The home, which was built before 1978, has peeling paint on the exterior.

9 - The house was built prior to 1978, and it suffers from paint flaking or peeling off the walls.

8 - Paint is peeling on a home older than 32 years (Note: this post is in 2010).

7 - A shed that was built in 1999 has paint peeling off it, but the house was built in 1977.

6 - A deck that was built last year is peeling because of a severe storm season. It's attached to a house built int he early 70s.

5 - A door or window jam was replaced on an older home (pre-1978), and it has not been painted at all. It is simply bare wood.

4 - The house was built in 1955; then it was torn down and rebuilt in 2008. The tax records still show it was built in 1955. Paint is peeling off the fascia board or gutter or some small area.

3 - Interior doors, molding, walls, ceilings, etc., suffer from peeling paint, and the house was built before 1978.

2 - The house is being sold "strictly as-is," and the owner will make no repairs. It's up to the buyer to fix anything afterward. However, the home has peeling paint, inside, outside, anywhere, and it was built before 1978.

1 - By now, I think you realize I'm going to mention the words "paint" and "1978" somewhere on this line.

House Built < 1978 + Peeling Paint = Fail

 

Listing agents: Do yourselves a favor. The next time you accept an offer on a house that was built before 1978 that is for an FHA contract, walk around the house with your contractor. Paint any peeling surfaces. It doesn't have to be pretty.

The rule is that you must either test for lead (a very time-consuming and expensive prospect) or paint. Nine of the last ten homes I failed for one of these top ten reasons above involved a fix that required less than a gallon of paint and maybe an hour of work.

 

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Rainmaker
790,066
Susan Laxson CRS
Palm Properties - La Quinta, CA
Local Knowledge & Global Network

Definitely important advice for those of us who sell homes that were built prior to 1978 - thanks for sharing this list with us!

May 26, 2010 04:07 AM #1
Rainer
278,267
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

Great post for listings built before 1978...and for buyer agents who have a client who is going to use FHA financing.

May 26, 2010 05:21 AM #2
Rainer
225,444
Dave Sullivan
Real Estate One - Birmingham, MI
Michigan Realtor with an investor viewpoint
 

Excellent information I will forward it if that is ok? thank you!!!

Nov 23, 2012 12:13 AM #3
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Rainmaker
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Rick Phillips

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