FHA cost to cure or not.

[joe lee]

I have a client that is demanding a cost to cure for mpr repairs on an FHA report.

HUD states to give a cost to cure. However, on page 844 - 845 of the 4000.1 they also state, "When examination of New or Existing Construction reveals noncompliance with MPR and
MPS, the Appraiser must report the repairs necessary to make the Property comply, provide an estimated cost to cure, provide descriptive photographs, and condition the appraisal for the
required repairs. If compliance can only be effected by major repairs or alterations, the Appraiser must report all readily observable property deficiencies, as well as any adverse conditions discovered
performing the research involved in completion of the appraisal, within the reporting form.Regardless of the Appraiser’s suggested repairs, the Mortgagee will determine which repairs are required."
"The Appraiser must notify the Mortgagee and make the appraisal subject to an inspection by a qualified individual or entity when the observation reveals evidence of a potential
safety, soundness, or security issue beyond the Appraiser’s ability to assess. The Appraiser must report and describe the indication of a particular problem when requiring
an inspection of any mechanical system, structural system, or other component requiring a repair."


Basically when an appraiser can reasonably estimate the cost to cure based on their knowledge and available resources, they should provide that estimate as required by HUD Handbook 4000.1.
If the appraiser is unable to confidently estimate the cost of a repair , the inspection by a qualified individual or entity will provide a more accurate assessment and cost estimate.

So if as an appraiser I feel applying cost to cure is beyond my expertise I believe FHA allows me to not provide.

I know FHA is never cut and dry but my interpretation of this rule allows me to refrain from giving a cost to cure and to rely on experts to determine costs to repair.
what do you guys feel?

 

[J Grant]

I have a client that is demanding a cost to cure for mpr repairs on an FHA report.

HUD states to give a cost to cure. However, on page 844 - 845 of the 4000.1 they also state, "When examination of New or Existing Construction reveals noncompliance with MPR and
MPS, the Appraiser must report the repairs necessary to make the Property comply, provide an estimated cost to cure, provide descriptive photographs, and condition the appraisal for the
required repairs. If compliance can only be effected by major repairs or alterations, the Appraiser must report all readily observable property deficiencies, as well as any adverse conditions discovered
performing the research involved in completion of the appraisal, within the reporting form.Regardless of the Appraiser’s suggested repairs, the Mortgagee will determine which repairs are required."
"The Appraiser must notify the Mortgagee and make the appraisal subject to an inspection by a qualified individual or entity when the observation reveals evidence of a potential
safety, soundness, or security issue beyond the Appraiser’s ability to assess. The Appraiser must report and describe the indication of a particular problem when requiring
an inspection of any mechanical system, structural system, or other component requiring a repair."


Basically when an appraiser can reasonably estimate the cost to cure based on their knowledge and available resources, they should provide that estimate as required by HUD Handbook 4000.1.
If the appraiser is unable to confidently estimate the cost of a repair , the inspection by a qualified individual or entity will provide a more accurate assessment and cost estimate.

So if as an appraiser I feel applying cost to cure is beyond my expertise I believe FHA allows me to not provide.

I know FHA is never cut and dry but my interpretation of this rule allows me to refrain from giving a cost to cure and to rely on experts to determine costs to repair.
what do you guys feel?

Most repair and replacements are pretty simple, one can look them up on the internet, call around, go to Home Depot - I always make a cost to cure a range , $8000-$10,000 estimate, and stress that the actual cost can be higher or lower.

If it is a very complex repair or something involving mold or a specialty, call for an inspection or state it is beyond your expertise. However, appraisers are expected to have some basic working knowledge of what it costs to repair or replace items, or a roof, etc. Now with info all over the internet or available from cost services.

 

[joe lee]

Most repair and replacements are pretty simple, one can look them up on the internet, call around, go to Home Depot - I always make a cost to cure a range , $8000-$10,000 estimate, and stress that the actual cost can be higher or lower.

If it is a very complex repair or something involving mold or a specialty, call for an inspection or state it is beyond your expertise. However, appraisers are expected to have some basic working knowledge of what it costs to repair or replace items, or a roof, etc. Now with info all over the internet or available from cost services.

Yes some are basic in fact most are but why would the appraiser expose any repair costs simply because the client is asking. FHA gives us an out and really any repair can be more extensive then first thought. Would it not be prudent to air on the side of caution and not give a cost to cure and let the client seek out those if they so choose? Either way, I feel we have the right to give repair costs or not.

 

[alebrewer]

Ask Claude, then just cite your source. Hey Claude, what's the estimated cost to replace a broken window on a home in Plano, Texas?
"
Based on my search results for window replacement costs in the Plano, Texas area, here's what you can expect to pay:


Typical Range: $326 to $436 per window How Much Does Window Replacement Cost in Plano, TX, though costs can vary significantly based on several factors.


Broader Price Range: The cost spectrum is quite wide depending on the window type and quality:

• Basic replacements: $150 to $400 per window How Much Does Window Replacement Cost in 2025? Calculate Your Costs
• General Texas range: $500-$1,700 per window How Much Do Replacement Windows Cost in Texas? | Brennan Enterprises
• Premium brands like Andersen: $750 to $1,250 per window 20 Best Window Replacement & Installers Near Me in Plano, TX (2025) - EcoWatch

Cost Factors:

• Window size and type (single-hung, double-hung, casement, etc.)
• Frame material (vinyl is most cost-effective)
• Glass type (single-pane, double-pane, energy-efficient)
• Installation complexity
• Number of windows being replaced (bulk discounts often apply)

For a standard residential window replacement in Plano, you're most likely looking at around $300-500 per window installed. I'd recommend getting quotes from multiple local contractors to get accurate pricing for your specific situation, as costs can vary based on your home's unique requirements."


In other words, hit the easy button.

 

[J Grant]

Yes some are basic in fact most are but why would the appraiser expose any repair costs simply because the client is asking. FHA gives us an out and really any repair can be more extensive then first thought. Would it not be prudent to air on the side of caution and not give a cost to cure and let the client seek out those if they so choose? Either way, I feel we have the right to give repair costs or not.

And the client has the right to dump you and find another appraiser who will provide the repair estimate, since the client NEEDS it , or they would not ask.
Again, state it as range and that actual cost can be higher or lower.

 

[joe lee]

And the client has the right to dump you and find another appraiser who will provide the repair estimate, since the client NEEDS it , or they would not ask.
Again, state it as range and that actual cost can be higher or lower.

see that fear is the issue with this profession. Its not what is correct, it is what we have to give up in order to make AMC's or lender happy regardless if it is right and wrong. Not a good look. We should be the experts and we should have the final say in OUR reports assuming our point is factual.... always remember, if anything bad happens and I mean anything that "great" client will dump you like a sack of bricks and throw you to the wolves.

 

[Terrel L. Shields]

some are basic in fact most are but why would the appraiser expose any repair costs simply because the client is asking.

Learn to use the book, learn to estimate the quantities to be repaired and provide an estimate based on the book. Craftsman books -

 

[Surf Cat]

For cost to cure estimates, I go to www.homewyse.com.

Enter the type of repair for example, a re-roof, enter a zip code and you get a nice clean print out for the cost to enter into your report and to your work file. After adding in your cost estimates, throw in some cya commentary " should cost estimates from a qualified contractor reveal significantly higher or lower costs than stated in this report, the appraiser has the right to revise their opinion of value". Boom, you're done.

But let's get to the real elephant in the room.

I feel applying cost to cure is beyond my expertise I believe FHA allows me to not provide.

You don't want to do it. Maybe it's because of the low fee the AMC is offering you, maybe you worked on this assignment way longer than you anticipated.... I don't know.

I don't work for AMC's currently. But when I did and it came to bucking the system, it always came down to what was in the engagement letter.... it is here where you have wiggle room to push back or have to comply. Some of those AMC engagement letters can be pretty long. They have a lot of "gotcha" clauses in there. Sometimes, you can find what they're asking you to do, is not included in the engagement. It is here where you can fight back and ask for a higher fee, Etc. Otherwise, your hands are tied and you have to comply.

Good luck....

 

[joe lee]

For cost to cure estimates, I go to www.homewyse.com.

Enter the type of repair for example, a re-roof, enter a zip code and you get a nice clean print out for the cost to enter into your report and to your work file. After adding in your cost estimates, throw in some cya commentary " should cost estimates from a qualified contractor reveal significantly higher or lower costs than stated in this report, the appraiser has the right to revise their opinion of value". Boom, you're done.

But let's get to the real elephant in the room.

You don't want to do it. Maybe it's because of the low fee the AMC is offering you, maybe you worked on this assignment way longer than you anticipated.... I don't know.

I don't work for AMC's currently. But when I did and it came to bucking the system, it always came down to what was in the engagement letter.... it is here where you have wiggle room to push back or have to comply. Some of those AMC engagement letters can be pretty long. They have a lot of "gotcha" clauses in there. Sometimes, you can find what they're asking you to do, is not included in the engagement. It is here where you can fight back and ask for a higher fee, Etc. Otherwise, your hands are tied and you have to comply.

Good luck.

Wanting to do it is not the issue but being demanded to do it, is. I have been an appraiser for 30 or so years and over all those years I have seen appraisers that simply "do whatever the client asks" and then there are those that do what is correct. We are not painters, not foundation repair contractors, not roofers - nor should we act like we are. The cost to cure question is flawed and for the most part so inconsistent and incorrect that in the end should never be asked of us.

 

[alebrewer]

The cost to cure question is flawed and for the most part so inconsistent and incorrect that in the end should never be asked of us.

But that doesn't change the requirement to know and follow the FHA regs, does it? I mean, if you knew the regs, and if you believe you can't comply with the regs, wouldn't you recuse yourself as soon as you knew the property had repairs you'd have to estimate a CTS for?

I think we all understand your concern - and I don't think anyone's trying to bust on ya, but come on... there's way bigger issues that estimating a CTC.