Should This Home Pass An FHA Appraisal As C3?

[Joe Flacco]

It's obviously not C3 condition. The appraiser did a crappy job reporting the condition of the property. No argument there.

 

[RSW]

Well, quite honestly because the funds being given are only to cover the majors that MUST be completed to assure the roof stops leaking. And the photos you have seen are only a small sample from the inspection. And last and most importantly, because the appraisal and the inspection do not line up in my estimation. Thus the reason I posed it as a question, does this home truly meet a C3 standard?View attachment 31825 View attachment 31826 View attachment 31827 View attachment 31828 View attachment 31829

Based upon the appraiser's description of the updates made I would not have called that a C3 per the Fannie Mae definitions.House is 33 years old and not much updating has been done. I would speak with the Lender about that. If they won't do anything you could call and speak with someone at the Atlanta HOC. Just give them the FHA case # when you call. That will get things moving real quick.

 

[CindyR]

Good grief - i can't believe all the building components are listed in "G" condition? Surely the photos in the inspection report show a lot of things are not good. And that missing hand rail on the stairs is the quintessential FHA safety issue. How can you not catch a missing handrail as a Safety issue??? Appraisers like that are an embarrassment to us all. Someone should notify the HOC and get this guy some remedial training...

 

[EdinBama]

Good grief - i can't believe all the building components are listed in "G" condition? Surely the photos in the inspection report show a lot of things are not good. And that missing hand rail on the stairs is the quintessential FHA safety issue. How can you not catch a missing handrail as a Safety issue??? Appraisers like that are an embarrassment to us all. Someone should notify the HOC and get this guy some remedial training...

As the buyer, I agree. I just really don't want to delay closing on the home any further. I might contact the HOC in Atlanta with both the appraisal and independent inspection report, in the event they would like to discuss the appraisal with the appraiser and his competency level. My realtor has expressed that appraisers in Alabama are pretty much untouchable and it is what it is.

 

[BRCJR]

Effective Age 11---Holy Smokes Batman !!!!!

 

[techbiker]

Lol. Just had an appraisal completed and my 20 yr old house was given a "C4" due to one bit of stained carpet, moderate-quality refrigerator, and some scratched paint. No attention paid to the major improvement work done every couple years. Brand new trim in many places, new roof, all new HVAC, new pool, etc.

Based on this, my appraiser would have given your house a C6.

 

[EdinBama]

Lol. Just had an appraisal completed and my 20 yr old house was given a "C4" due to one bit of stained carpet, moderate-quality refrigerator, and some scratched paint. No attention paid to the major improvement work done every couple years. Brand new trim in many places, new roof, all new HVAC, new pool, etc.

Based on this, my appraiser would have given your house a C6.

Appraising is subjective that's for sure. It is sad when you KNOW you will have to perform all the deferred maintenance that the current owner feels were not issues to begin with. And this appraiser has instilled in the seller that he is correct, his home needs no repairs to be saleable.

 

[RSW]

Appraising is subjective that's for sure. It is sad when you KNOW you will have to perform all the deferred maintenance that the current owner feels were not issues to begin with. And this appraiser has instilled in the seller that he is correct, his home needs no repairs to be saleable.

I don't believe the condition rating is subjective. It should be based on the Fannie Mae UAD condition rating definitions which have been published by Fannie Mae. It doesn't matter what part of the country the subject is located in. The definitions are the same. That appraiser should be removed from the FHA panel of appraisers and reported to the State.

 

[TRESinc]

And this appraiser has instilled in the seller that he is correct, his home needs no repairs to be saleable.

the appraisal is for the intended user, the client who hired the appraisers, not for the seller, the buyer, the agents or anyone else involved in the transaction. it is not a home inspection and should not be relied upon one as such. if the seller wants to make assumptions based on a copy of a report performed for mortgage lending purposes they received from the buyer, because the client who hired the appraiser (intended user) will not give a copy to anyone but the borrower, then that is on the seller and by extension the buyer and no one else.

 

[techbiker]

Appraising is subjective that's for sure. It is sad when you KNOW you will have to perform all the deferred maintenance that the current owner feels were not issues to begin with. And this appraiser has instilled in the seller that he is correct, his home needs no repairs to be saleable.

I would consider yourself lucky in a sense. At least you know that your appraisal is garbage.

From reading the forum and my personal experience, it seems that some homes are borderline C3 and C4 condition. How much deferred maintenance drops a C3 to a C4? If some paint chips, a lower-quality fridge, and a 1' x 1' carpet stain are all it takes for a C4 rating, your home would need to be perfectly clean and freshly repaired to reach C3. Honestly though, I feel our appraiser was somewhat below market value. Yes, I agree that many appraisals involve some subjectivity. Fannie definitions can be vague.

Please note that I'm not an appraiser.