FHA Appraisal - Dishwasher Missing

[Tumbuktu]

FHA Handbook 4000.1 (Issued 01/18/2023) . . . Page 594
d. Appliances (09/14/2015)
Definition
Appliances refer to refrigerators, ranges/ovens, dishwashers, disposals, microwaves, and washers/dryers.
Standard
Appliances that are to remain and that contribute to the market value opinion must be operational.
Required Analysis and Reporting
The Appraiser must note all appliances that remain and contribute to the Market Value

Would there be a problem (besides contributory value) with FHA Appraisal, if the property does not have 'Dishwasher' at all.

 

[Terrel L. Shields]

I would think not.

 

[Overimprovement]

No. I have done many FHA appraisals, quite a few with no appliances at all.

And if appraiser determines an appliance is personal property, then it does not need to be functional either.
It is kind of dumb rule--if something doesn't work, then it does not contribute to market value, so I shouldn't have to condition a report on it working, since we do as-is.

FHA frequently puts the cart before the horse. I did one years back that had added a bathroom, but did not have baseboard trim. They would not fund until that trim was added.
Had another where they were going to add a bathroom, but changed their mind, but the toilet and sink were already plumbed. FHA would not fund until the bathroom was complete, not even allowing it to just be called a closet by boarding up the openings and putting a rug in.

 

[alebrewer]

No dishwasher is ok. If there IS a dishwasher, it has to be functional.

 

[shrubberyvaluation]

No. I have done many FHA appraisals, quite a few with no appliances at all.

And if appraiser determines an appliance is personal property, then it does not need to be functional either.
It is kind of dumb rule--if something doesn't work, then it does not contribute to market value, so I shouldn't have to condition a report on it working, since we do as-is.

FHA frequently puts the cart before the horse. I did one years back that had added a bathroom, but did not have baseboard trim. They would not fund until that trim was added.
Had another where they were going to add a bathroom, but changed their mind, but the toilet and sink were already plumbed. FHA would not fund until the bathroom was complete, not even allowing it to just be called a closet by boarding up the openings and putting a rug in.

Yes, I agree in principle, I have a feeling when push comes to shove FHA won't take that as a defense (personal property)...but I don't know personally. In any case I don't want to flood a kitchen from operating a dishwasher, and I have a feeling FHA won't pay for it.

 

[Overimprovement]

It can come down to what is customary in your market. If most homes don't have a particular appliance, it is more easily considered personal property. Fridges are the best example there I think. Dishwashers are probably the least likely to easily be called PP just because they are the hardest to install though. Fridge and electric stove? Takes longer to position them than to actually install them (simple plug).

The contract can also help/hurt the cause--if something is specifically listed as PP, it is more reasonable to call it that.

Since the original OP question has been answered, lets derail the thread--this discussion brings up the interesting point of whether appraisers adjust in the SCA for appliances/lack of, and if so, what criteria is used to determine if one is PP or RE? I am not sure I have ever viewed an SCA that had a line item for appliance differences--their actual presence or not, not differences in quality. Anyone do this?

 

[alebrewer]

Since the original OP question has been answered, lets derail the thread--this discussion brings up the interesting point of whether appraisers adjust in the SCA for appliances/lack of, and if so, what criteria is used to determine if one is PP or RE? I am not sure I have ever viewed an SCA that had a line item for appliance differences--their actual presence or not, not differences in quality. Anyone do this?

IF I can extract, quantitatively, market reaction to an appliance set (or lack thereof), then I wouldn't hesitate to do so. In general, I think the data is probably not granular enough to be making $300 to $500 adjustments. Pretty sure a non-functional dishwasher isn't going to play heavily into a purchase decision on a $400k property. A kitchen stripped of all appliances, OTOH.... maybe so.

 

[Tumbuktu]

Is it enough to 'Uncheck Dishwasher in 1004 Improvements Section' or FHA expects 'Dishwasher (or any appliance) not present' to be written in 'FHA Comments' along with 'Property meeting MPR, Head & Shoulder Attic Inspection . . . .'

 

[glenn walker]

Yes, I agree in principle, I have a feeling when push comes to shove FHA won't take that as a defense (personal property)...but I don't know personally. In any case I don't want to flood a kitchen from operating a dishwasher, and I have a feeling FHA won't pay for

Again a Non-Existant dishwasher cannot flood. IF buyer wants one its like $1,500 bucks at Home Depot installed. LMAO

 

[Tom4value]

FHA Handbook 4000.1 (Issued 01/18/2023) . . . Page 594
d. Appliances (09/14/2015)
Definition
Appliances refer to refrigerators, ranges/ovens, dishwashers, disposals, microwaves, and washers/dryers.
Standard
Appliances that are to remain and that contribute to the market value opinion must be operational.
Required Analysis and Reporting
The Appraiser must note all appliances that remain and contribute to the Market Value

Would there be a problem (besides contributory value) with FHA Appraisal, if the property does not have 'Dishwasher' at all.

A dishwasher is not a mandatory appliance. Many kitchens don't have one. Now, if it is supposed to be there (noted in the contract), there is a problem.