Don’t let an FHA appraisal kill your deal. FHA loans are federally funded mortgages and come with stricter underwriting and property condition requirements. While preparing to sell your home it can be easy to overlook some property conditions to get your house on the market fast.
When you accept an offer from a buyer with FHA financing keep in mind that in addition to their own inspections the appraiser may note repairs that the appraised value is dependent on. In this case the lender will require repairs before loan documents are released or the loan is funded.
Prepare your home for sale, don’t just clean the carpets and put our deodorizers. Get a home inspection and pest inspection!
Ask the inspector to go through the home with a fine tooth comb to point out any safety issues that could cause you to have to negotiate repairs and in some cases the purchase price of the home. Pest inspectors will point out areas where termites may be present causing damage and/or areas of dry rot that will need to be replaced. Providing a Section 1 & 2 clearance to your Realtor when you list your home will increase the perceived value of your home. Roof inspections are also vital.
Buyer agents will know the home is in tip top shape and encourage their clients to offer higher purchase prices. This also saves you time and frustration during the contract period not having to negotiate repairs and money you might have to spend to close the deal.
HUD approved appraisers are required to confirm property value and inspect health and safety inspections. Here are a few things HUD appraisers will be looking for…
- Chipped or peeling paint
- Exposed wood siding/trim
- Stucco cracks larger than the width of a quarter
- Evidence of arcing or smoke/burning in the main electrical service box
- Loose handrails
This list is not all inclusive of areas of concern may arise. Please refer to the HUD Inspection checklist at fhahandbook.com for more information.
Landscaping can even present an issue…there must be sufficient slope to allow water to drain away from the house. Standing water in your yard may be indicative that there is not enough slope to drain the water away from the home.
Attic spaces may also present a problem if a full attic inspection is required. Let’s be honest with ourselves, how many times do you go into your attic to make sure there are no leaks or undiscovered damage?
The competition for pricing your home to prepare you to receive multiple offers over your list price depends on how ready your home is to sell and whether buyers will have the confidence in the property’s condition.
For more information on selling your home and its market value contact me at firstname.lastname@example.org or call me at 916-600-1239.