Cover Those Shoes or Boots Before Entering
Home can be both near dilapidated or a thing of modern beauty. This speaks to the several industries of service people that enter another person's home. No one that enters your home should disrespect you by leaving their shoes or boots on. This doesn't pertain to vacant homes on the verge of falling down, but this is speaking to the homeowner who is refinancing or getting a home equity loan and require an appraisal. Pilgrim Colonial appraisers will almost always wear shoe covers. Especially during the winter time its important for us to ensure your home is the way we left it. In a day where service is seemly becoming more cursory, we take a moment to "take our shoes off" so-to-speak and value our time with you.
The Brevity of An Appraiser’s Inspection – Just the Beginning
Pilgrim Colonial Appraisers take pride in chatting with the home owner or realtor to get to learn more about the property. Building rapport goes a long way with us. Often times we hear how we spent longer than any prior appraiser. Appraisers do appear to be brief because their inspection isn't exhaustive. Its misconception to compare an appraiser to a home inspector. Although an appraiser tends to review similar traits about the home, the appraiser is focusing on quality and condition of the home while verifying what public data is listed on a home. Home inspectors get into specifics such as looking into your walls for the type of insulation. It is also a misconception to think that the appraiser only spent 1 hour or less on the job. That inspection time is only the beginning. Typically an appraiser does prior field work on a home gathering several sources of data about the home and location. After an inspection is done, the appraiser has to go to work finding suitable comparables to compare your home to. Some superior and some inferior. An exact match would be ideal, but in the real world appraisers do what is called bracketing. By bracketing, they gather both a high and a low (particular) aspect of your home. Adjustments are made to formulate an opinion of value. Alongside with some macro and micro market data, the appraiser considers all these sources to create a report that is sent to your lender. Some appraisers can spend an entire workday on one appraisal. Give them the benefit of the doubt. Although they were not in your home for several hours, a detailed report is crafted for your lender.
Selling or Refinancing with FHA?
FHA is a wonderful program for first-time home owners. Essentially, they are really in the home owner's corner when it comes to your home. The U.S. Department of Housing and Urban Development uses the FHA Single Family Housing Policy Handbook 4000.1(latest edition to date) and sets guidelines as to what is required for a home to be eligible for an FHA transaction (whether sale or refinancing). Here are somethings to be mindful of when working with FHA. Ex1. I am selling my house and one offer is from a buyer that has FHA financing and another is conventional. Is one better than the other? The only real difference from your buyers is the FHA requirements. Both means of financing (assumed they are pre-qualified) are going to be able to process the transaction. The concerns may be with FHA though, if for say you have peeling paint, missing hand railings, No GFI electrical outlets in the bathrooms or kitchens, or broken windows. That is not an exhaustive list but it illustrates some items an appraiser will have to ensure are up to "FHA code" before financing eligibility. If your home is older and you want to avoid these things, remember that FHA just wants to confirm the house is safe. You may want to bring your home up to their standard anyhow as it will allow for more buyers to compete for your home. Ex2. The appraiser who came out to my house for my appraisal sent the lender a list of a few items that needed to be fixed. Now my lending is delayed. Is there anyway to expedite this? When you are working with FHA financing, you do need your home to adhere to the policy handbook. It is very often hind-sight that we wish we remedied the damages/repairs prior… Continue Reading
The Knee Wall – The measurement that works.
What is a Knee Wall? A knee wall is simply any wall that slants down from the ceiling to 4 ft or even to the ground. These are often found in Cape-cod, Gambrel Colonials, and Bungalow style homes. This wall tends to report differences in your gross living area. An appraiser may measure only where the wall is greater than 7 feet tall. This often the discrepancy when it comes to reporting GLA in comparison to what is on public record. As of April 2022, Real Estate Appraisers must adhere to ANSI (American National Standard Institute) measuring guidelines for all Fannie Mae loans issued. When inspecting the subject property, real estate appraisers are looking to find the area that has a ceiling height of 5' or more. There are some more catches to this as well. Ceiling Height To be included in the finished square footage calculations, finished areas must have a ceiling height of at least 7 feet except under beams, ducts and other obstructions where the height may be 6 feet 4 inches; under stairs where there is no specified height requirement; or where the ceiling is sloped. If a room's ceiling is sloped, at least one-half of the finished square footage in that room must have a vertical ceiling height of at least 7 feet; no portion of the finished area that has a height of less than 5 feet may be included in finished square footage. Living Area Discrepancies Between Public Records and Appraiser Values This is generally more common for homeowners who have multi-level properties where the 2nd or 3rd floor do not match the base level. Local assessors typically do not measure upper levels of living space within residential properties. Instead they commonly approximate. An example would be that you may find your local assessor approximating… Continue Reading
