My daughter is buying a house with FHA financing. I went out with the inspector and she is OK with the items he noted. However, the appraiser has required a list of things that need to be accomplished by closing or no more than 14 days after closing. Things like peeling paint, deck stain, painting exposed wood, etc. The closing has been postponed twice because of the appraiser. His list postponed the closing once due to the requirement to get a contactor to provide estimate for his list. The first contractor "ghosted", and they had to find another.

Most of the list is really cosmetic items and the appraisal was $ 25,000 over the purchase price. Is this normal? How does the appraiser get involved in home repairs? It has been quite a while since I have been involved in purchasing a home, and this seems really odd. TIA....

It's an FHA thing I believe. Read your financing addendum but you are probably going to have to wait for repairs or renegotiate.

Also think it is an FHA/appraisal guidelines.

Fha asks the appraiser to also do some home inspection. So a more inclusive report. It's in your best interest to get the updates.

I'd find a repair solution and move on.

I've sold a house to a buyer who used FHA financing and there were similar small repairs that were required by FHA to close. I'd bet everything you listed above is something required to be handled before closing by FHA.

oh the joys of FHA/VA. I always chuckle when buyers agents try to tell me they're no different than conventional loans.

In my experience, the appraisers are sub-standard. Could just be bad luck though.

Thanks guys. This was something new to me, so I thought someone on here was familiar with it. I assumed FHA would be interested in health/safety issue, but the peeling paint and deck stain threw me for a loop. I think they are going to escrow the money and give her 14 days to make the repairs. She is already doing some of the minor things herself. She called the other day and advised me that she used my phone number at Lowe's to get my veteran's discount! She also ranted about the price of paint!

buzzardb267 said:

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My daughter is buying a house with FHA financing. I went out with the inspector and she is OK with the items he noted. However, the appraiser has required a list of things that need to be accomplished by closing or no more than 14 days after closing. Things like peeling paint, deck stain, painting exposed wood, etc. The closing has been postponed twice because of the appraiser. His list postponed the closing once due to the requirement to get a contactor to provide estimate for his list. The first contractor "ghosted", and they had to find another.

Most of the list is really cosmetic items and the appraisal was $ 25,000 over the purchase price. Is this normal? How does the appraiser get involved in home repairs? It has been quite a while since I have been involved in purchasing a home, and this seems really odd. TIA....

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The appraiser does not make the rules, we just follow them. The property condition caused the problem - not the appraiser.

These situations are a massive pain in the ass to everyone involved, including the appraiser. This is why I don't do any FHA appraisals on old houses. Even though the repair issues seems flippant and cosmetic, the peeling paint of a home built prior to 1978 poses a lead based paint poisoning issue. HUD demands that the paint be scraped and repainted and all of those scraped off paint chips cannot be left at the site.

HUD has an amazing amount of "property eligibility" rules that must be adhered to and if you don't call them out, you can lose your ability to do FHA work.

Most of the answers are on target. I was an appraiser a long time ago and now my wife and I are Res. agents. We come across appraisers most often with requirements on FHA but now and then get one even on Conv. The appraiser is representing the lender by making sure it meets the FHA guidelines. My understanding is the buyer OR seller can do these repairs prior to closing. Usually we tell the seller to be ready for this and that the seller MAY have to do some.... usually a seller understands and does it. The seller can say NO and the deal could just terminate. In your case if the seller balked on repairing, you could offer to compromise and pay half BEFORE closing though.

Honest question....does the appraisers ever go beyond the FHA guidelines? I don't want to pick a fight, or call anyone out, but seriously question how specific the guidelines are. One item that had to be addressed was his requirement that the barn, which needed lots of work, be painted the same color as the home. My daughter had already decided to demo the barn since the roof had been leaking for a while and there was extensive rotting. I have already called dibs on some of the lumber.

Edit:....to ask if the appraiser has much latitude in what he considers a requirement by FHA. This is her most recent response to me....

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They didn't say anything about lead or paint scrapings being removed. They presented it like it was straight cosmetic. The contractor I talked to on Monday is also an appraiser and he said he's never seen that before. So why does wood need to be stained? Why would the barn need to be repainted to match the house…

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buzzardb267 said:

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Honest question....does the appraisers ever go beyond the FHA guidelines? I don't want to pick a fight, or call anyone out, but seriously question how specific the guidelines are. One item that had to be addressed was his requirement that the barn, which needed lots of work, be painted the same color as the home. My daughter had already decided to demo the barn since the roof had been leaking for a while and there was extensive rotting. I have already called dibs on some of the lumber.

Edit:....to ask if the appraiser has much latitude in what he considers a requirement by FHA. This is her most recent response to me....

Quote:

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They didn't say anything about lead or paint scrapings being removed. They presented it like it was straight cosmetic. The contractor I talked to on Monday is also an appraiser and he said he's never seen that before. So why does wood need to be stained? Why would the barn need to be repainted to match the house…

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Any building on the lot has to have the defective paint issue rectified, I have no idea why they referenced color as that should be irrelevant. Here's a pretty good synopsis of the paint issue.

FHA defective paint

I am in the same boat currently, under contract selling my house and waiting for the appraisal which should happen within the next week.

I AM worried how picky they will be. I am handy and do my own renovations so finding someone is not an issue.

Anyone know what the inspectors tend to focus on? Or not focus on?

Our realtor who I have grown to dislike intensely said, "Oh, it is just a formality. Should be less than an hour. They will just see that there is a roof that doesn't leak, working doors and windows, clean water supply, and sewer/waste works. Absolute basics to make sure the house is habitable."

I will say that I gave my family home to my three kids. One bought it and I split the purchase price between them. So, one daughter had to finance 2/3 of the value of the home. It was an FHA loan also, and it had numerous issues being 30 years old. It had trim and facia that should be replaced, gutters that leaked, etc. The usual things that should be maintained but weren't because they were not critical to me.

The appraiser had zero issues. I was shocked. I guess it depends on which appraiser you draw. I realize some are more thorough than others, and I suspect some are just lazy, just like any other business.

Eh, you start to learn when you need to open your mouth and times when doing so will just be a PITA for literally everyone.

I'd say considerate is a more appropriate word than lazy.

The appraisers are never wrong

buzzardb267 said:

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My daughter is buying a house with FHA financing. I went out with the inspector and she is OK with the items he noted. However, the appraiser has required a list of things that need to be accomplished by closing or no more than 14 days after closing. Things like peeling paint, deck stain, painting exposed wood, etc. The closing has been postponed twice because of the appraiser. His list postponed the closing once due to the requirement to get a contactor to provide estimate for his list. The first contractor "ghosted", and they had to find another.

Most of the list is really cosmetic items and the appraisal was $ 25,000 over the purchase price. Is this normal? How does the appraiser get involved in home repairs? It has been quite a while since I have been involved in purchasing a home, and this seems really odd. TIA....

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This is straight from the FHA Handbook.

"Regardless of the Appraiser's suggested repairs, the Mortgagee will determine which repairs are required"

It is the appraiser's job to observe, analyze and report anything that may potentially fail to meet FHA Minimum Property Requirements or Standards, but its the lender that makes the determination for repairs.