The Appraiser’s Survival Guide: How to Pass Your FHA Inspection Without Breaking a Sweat (or a Toilet)
Utilities: Ensure that all utilities are turned on during the inspection, including appliances, to confirm they’re in working order.
Appliances: All appliances should be functional.
Drainage: Proper drainage around the property is essential. Standing water near the foundation can cause major issues down the road, so make sure it’s directed away from the house.
Heating and Cooling: The heating system must be operational, and if there’s air conditioning, it should cool the space as intended.
Water Pressure: Water pressure must be adequate. Test faucets and toilets, ensuring both hot and cold water function at appropriate pressure. If the shower feels like a gentle mist, you may want to address it.
Water Heater: The water heater should be fully operational and properly strapped to local code standards.
Attics and Crawlspaces: The appraiser must be able to view attics and crawlspaces easily. Excessive clutter, damage, or poor access could prevent proper inspection. Ensure these areas are clear and safe to access.
Paint: For homes built before 1978, peeling, chipping, or flaking paint is a concern due to the risk of lead. For homes built after 1978, defective paint can affect the property’s long-term value. Address any areas where paint is damaged or peeling.
Electrical Outlets: All electrical outlets should be functional and have cover plates in place. Exposed outlets or faulty wiring will need attention.
Toilets: Toilets should flush correctly and be securely mounted.
Termite Infestation: If there is an active termite infestation, it must be treated and eradicated before the property is appraised.
Cosmetic Issues: Minor cosmetic issues, such as worn carpet or a need for interior painting, are generally acceptable. However, significant damage or deterioration that impacts the health, safety, or long-term value of the property must be addressed.
Windows: Windows should open and close properly. Minor cracks are acceptable as long as they do not pose a safety hazard or affect the security and structural integrity of the window.
Wiring: There should be no exposed or dangling wires from missing fixtures or other sources. Safety is key—ensure that all wiring is properly secured and functional.
Air Conditioning: FHA does not require air conditioning; however, if the system is present, it must function properly. The appraiser will verify its operational state.
Smoke and Carbon Monoxide Detectors: Smoke and carbon monoxide detectors are required where mandated by local codes. Ensure these are installed and operational to meet safety standards.
Garage Firewall: The firewall between the garage and the living space must be intact. Missing sheet rock, pet doors, or other modifications could compromise fire safety and will need to be addressed.
Roof Condition: The roof must not be leaking and should have at least two years of useful life remaining. A roof in poor condition will likely result in a failed appraisal.
Hazardous Site Conditions: The property must not be subject to environmental hazards, noxious odors, excessive noise, or anything else that could affect the safety or livability of the home.
Trip Hazards: While trip hazards are not always an automatic failure, any legitimate safety concern should be addressed to avoid unnecessary risks during the inspection process.
Appraiser Judgment: While FHA guidelines are specific, appraisers sometimes need to use their professional judgment. If an issue appears to be a minor oversight rather than a major safety concern, the appraiser will use discretion to make an informed decision.