May 19, 2022
We write a great deal about not using the FHA appraisal to determine the condition of the home you want to buy with an FHA mortgage.
But why do we say this? Why can’t you trust the appraisal alone? Why pay for the home inspection? There are important reasons for homebuyers to pay for a home inspection as well as the appraisal. Here are some things you should think about before you decide to skip a home inspection.
The Foundation of Your Potential New Home
Your FHA appraiser is not required to be an expert in areas such as the foundation of the home. Some foundation problems may not be apparent in the appraisal process. They may only be revealed during a home inspection depending on the problem.
The appraiser is required to view the basement, crawl space, and other areas to look for leaks, excess moisture, and visible problems with the foundation.
But issues that are not visible may not be spotted during the appraisal and that should be a cause for concern if you are trying to decide whether to skip the home inspection or not.
Do you really want to trust the appraisal in hopes that the FHA appraiser happens to notice something might be wrong with the foundation?
Electrical and HVAC Systems
Surprise, surprise, the FHA appraiser is not required to be an expert in electrical systems such as HVAC, solar, etc. FHA loan rules require a few basics for the appraisal–the HVAC system must be powerful enough to reasonably heat and/or cool the home it is installed in.
But will your appraiser be able to tell if the HVAC system is on its last years or months? Remember, they do not have to be an expert, and such details might pass the appraisal process undetected.
The Roof
One thing your appraiser is NOT required to do? Step onto the roof to inspect it. Does that sound like the sort of approach you can trust to tell you the true condition of the property?
If you think the answer is no, you are not alone. A home inspector will look at the condition of the roof, determine its remaining life, and make recommendations accordingly.
Plumbing
If you guessed that the appraiser does not have to be a plumbing expert either, you are correct. Any obvious or noticeable issues with the plumbing system may be spotted during an appraisal, but if there are hard-to-detect issues you may find the appraisal process falls short of giving you a fully informed look at the state of the home.
Does the home have a basement with a sump pump? If so, a defective pump may not be detectable during the appraisal unless it’s been raining or it has otherwise been in use. You’ll want a home inspector to give you an opinion about such systems in the home.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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