Help with FHA

[London]

My boss is doing a FHA appraisal on a purchase for a property, and is vacant and owned by a bank. The heater is not in working order, and the buyer's agent gave a copy of a purchase order recommending repair or replacement. The lender wants him to proceed, and condition the appraisal subject to repairs or alterations. The electricity is on, but the water is not. The listing agent is not cooperating and won't turn on the water. Also part of the drywall in one of the bedrooms is removed, exposing some plumbing. The lender still wants him to proceed. Would this be one of those cases where you would mark both boxes: subject to repairs or alterations (for the heating unit) & subject to a required inspection (for the water not being on - to meet FHA minimum property requirements)?

 

[Mark to market]

If vacant, the appraiser should note, in the “Improvements” section under “condition of the property,” whether the utilities were on or off at the time of the appraisal. If off, condition the appraisal on a satisfactory re-inspection that the utility that was off at the time of the appraisal does not require alteration, repair or further inspection

 

[London]

That covers the water not being on (the water was the only utility not on), but does that cover the heater that is not in working order. Appendix D does state: more than one box may be marked in the reconciliation section depending on the assignment and property conditions. That's why I was wondering would this be a case of checking both boxes.

 

[Mark to market]

London,

It appears I did not read your 1st post well enough.

I would vote for marking both boxes.

 

[RSW]

I often check both boxes when there are mpr repairs and required inspections too.

 

[London]

Thank you all for confirming that! Now the anxiety attack will end!

 

[Greg Bell]

Kindly explain the the water , gas and the electricity must be on.The heater and hot water must be functional.Exposed wall would be MPR.I usually tell them this BEFORE I inspect.If they can't do that then it's no deal.You can inspect "Subject to" all of those nifty required MPR repairs...