FHA Outbuildings-no value

[ClemsonCatfish]

We are working on an FHA appraisal on a SFR with a couple sheds and an old barn. The opinion is that the outbuildings contribute no value, they are in rough shape. If an outbuilding does not contribute value, does it still need to meet the FHA peeling paint and safety requirements? We believe so, but have been told otherwise by another appraiser. Thanks in advance for your help!

 

[The Bob]

YES. Any improvements within the property have to meet MPR's for existing housing. Doesn't matter if it's a fence, a shed, whatever. I confirmed with the Philly HOC years ago.
You can call. Who knows, maybe they have changed it....

https://www.HUD.gov/program_offices/housing/sfh/sfhhocs/phi_hoc

 

[CGinMN]

For improvements built before 1978, the HUD Handbook states "Exterior surfaces include those surfaces on fences, detached garages, storage sheds, and other outbuildings and appurtenant Structures." There is no mention of the improvements needing to contribute value. As far as I know, that only applies to appliances, "The Mortgagee must ensure that appliances that are to remain and that contribute to the market value opinion are operational."

 

[Artemis Fowl]

Just throw a coat of paint on it...no problem

 

[Dublin ohio]

You mention that the outbuildings are in "rough shape". If they are so depreciated that they add no value. Are they safe to use. If not could be considered safety hazard.

 

[glenn walker]

We are working on an FHA appraisal on a SFR with a couple sheds and an old barn. The opinion is that the outbuildings contribute no value, they are in rough shape. If an outbuilding does not contribute value, does it still need to meet the FHA peeling paint and safety requirements? We believe so, but have been told otherwise by another appraiser. Thanks in advance for your help!

You won't know for sure until appraisal is done.

 

[shrubberyvaluation]

If im unsure I ask FHA and get it in writing. If I'm 100% sure and think I may get pushback I ask FHA and get it in writing,.

 

[Overimprovement]

What matters is if the improvements in question were built prior to 1978, not the main house.

Is it a pain? Yes. Just don't rush to judgment. It is HUD's world and we are merely players. Performers and portrayers.

 

[shrubberyvaluation]

What matters is if the improvements in question were built prior to 1978, not the main house.

Is it a pain? Yes. Just don't rush to judgment. It is HUD's world and we are merely players. Performers and portrayers.

And how can we tell that? Sure sometime you might be able to tell if its newer but you cant in many circumstances.

 

[Overimprovement]

And how can we tell that? Sure sometime you might be able to tell if its newer but you cant in many circumstances.

There may be something that tells the year built, if not and it could go either way, it is best to err on the side of caution. I have made judgment calls just based upon the condition of the materials (like a fence).