Home Inspector To Do Appliance And Mechanicals Inspection

[Gregory Beck]

The lender will never pay for it (HOME INSPECTOR FEE) you just appraised for free. A home inspection is $500 FHA APPRAISAL $375

 

[Mr Rex]

Actually Home Inspections are typically less than an appraisal fee, dependent on the area and supply of Home Inspectors (sound familiar?) I price based on the age, size, and condition of the home and how long I think it will take me to do the inspection and write up the report (sound familiar?) Fees range from $250 for a small condo on a slab to +/-$1000 for a large historic home.

 

[Tejus]

PAGE 509 OF THE NEW 4000.1 FHA HANDBOOK STATES: The FHA Appraiser does not guarantee that the Property is free from defects. The appraisal establishes the value of the Property for mortgage insurance purposes only.

Some appraiser's are over thinking the new HUD handbook. If HUD wanted their panel to be home inspector's as well as appraiser's, they would have had this as a requirement for their panel.

The new Handbook also states things like (from p. 443):

"The Appraiser must notify the Mortgagee of the deficiency of MPR or MPS if mechanical
systems are not safe to operate; not protected from destructive elements; do not have
reasonable future utility, durability and economy; or do not have adequate capacity."

"The Appraiser must examine the heating system to determine if it is adequate for
healthful and comfortable living conditions, regardless of design, fuel or heat source.

The Appraiser must notify the Mortgagee of the deficiency of MPR or MPS if the
permanently installed heating system does not:
• automatically heat the living areas of the house to a minimum of 50 degrees
Fahrenheit in all GLAs, as well as in non-GLAs containing building or system
components subject to failure or damage due to freezing;
• provide healthful and comfortable heat or is not safe to operate;
• rely upon a fuel source that is readily obtainable within the subject’s geographic
area;
• have market acceptance within the subject’s marketplace; and
• operate without human intervention for extended periods of time."

The FHA staff response to Appraisers' inspection questions is to ignore the Handbook and use your best judgment.

The problem is the FHA Handbook 4000.1 and FHA staff provide conflicting requirements for the Appraiser's inspection requirements and liability. FHA needs to identify their actual appraisal requirements and ensure their documentation and staff responses are consistent with their actual appraisal requirements.

Until FHA clarifies their actual Appraisal requirements, I'm looking forward to Appraisers' explanations on how they comply with the FHA inspection requirements which far exceed their expertise. For anyone reviewing the FHA Appraiser's work, it'll be like shooting ducks in a barrel, or should I say Appraisers on an inspection. It'll be a blood bath for the Appraiser.

 

[ockyappraiser]

As noted above, around here home inspection fees are less then appraisal fees. Typically $200 for a home inspection on a ranch style home, up from there. The idea floated by the other appraiser was to raise his fees to $500 for a standard FHA appraisal, paying $200 to the home inspector to inspect the mechanicals, appliances, attic, crawl spaces, etc. I'd be curios what HUD thought of the idea.