When you sell your home, the mortgage lender who is financing the property for the buyer will require an Appraisal. An Appraisal determines the market value of the property and ensures that the property meets the lender’s guidelines.
The mortgage lender orders the appraisal through a third-party Appraisal Management Company. No one involved in the home sale is permitted to select the appraiser. This includes the buyer, seller, lender, real estate agents, and title agents. Instead, the Appraisal Management Company will randomly assign an appraiser to the appraisal.
If the person purchasing your home is using a government loan, such as FHA, USDA, or VA, the property must meet HUD Property Guidelines. The Appraisal Management Company will assign a HUD-certified appraiser to complete the HUD appraisal. In addition to determining the market value of the property, the HUD-certified appraiser will review the condition of the home to ensure that HUD guidelines are met.
If the HUD appraiser is unable access all areas of the home, or is unable to test utilities, electric, water, etc., it will slow down the loan closing process and cause delays for both buyers and sellers!
Double check these areas BEFORE your HUD appraisal to avoid delays!
This is not a comprehensive list of HUD guidelines, rather, it is an overview of the issues we see most frequently. We recommend checking to make sure that your property is compliant in these areas BEFORE your appraisal. This will help to streamline the appraisal process and get you to the closing table faster!
Attics
- Must be easily accessible.
- If anything is blocking or restricting access to the attic it must be moved prior to the appraisal.
- Stairs or ladders must be sturdy and safe – no missing rungs, etc.
Crawlspaces and Basements
- Must be easily accessible.
- If anything is blocking or restricting access, it must be removed prior to the appraisal.
Electrical
- Must be on and in working order.
- All light fixtures and outlets work.
- Any outlets within 6 ft. of a water source are GFI outlets.
Heating and A/C Units
- Must be in working order.
Hot Water Heater
- Must be ON and must have pressure relief valve with extender pipe.
Paint
- There can be NO chipping or peeling paint on the interior or exterior of the home.
Plumbing
- Must be in working order.
- All Toilets flush.
- All Faucets turn on with hot and cold water.
Appraisers typically will NOT:
- Flip Electrical Breakers
- Light Pilot Lights to Test Furnace and Hot Water Heaters
- Move furniture to access crawlspaces, attics, or basements
- Open or close shutoff valves to test plumbing systems
- Climb stairs or ladders that appear to be unsafe
As a home seller, hopefully this article has given you some tips that you can use to be proactive with the condition and accessibility of your property. Everyone wins when we make it to the closing table faster!
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