Property Valuation
A Washington appraiser is preparing an appraisal for a buyer getting an FHA loan. The appraiser notices missing handrails, a broken window, and peeling paint. The appraiser will:
AValue the property as-is and let the lender deal with any property conditions
BNote the deficiencies as 'required repairs' because FHA has minimum property standards that must be met✓ Correct
CAppraise as-is and deduct the repair costs from the value
DRefuse to complete the appraisal because of the property conditions
Explanation
FHA appraisals must meet FHA Minimum Property Standards (MPS). Missing handrails, broken windows, and peeling paint (in older homes with potential lead paint) are typical FHA repair requirements. The appraiser will note them as required repairs, typically making the appraisal 'subject to' their completion.
Related Washington Property Valuation Questions
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- In Washington, an appraiser who develops a restricted use appraisal report (formerly 'restricted appraisal report') must include a notice that:
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