{"id":7926,"date":"2016-05-21T13:21:36","date_gmt":"2016-05-21T20:21:36","guid":{"rendered":"https:\/\/therealdaily.com\/?p=7926"},"modified":"2016-05-21T13:24:38","modified_gmt":"2016-05-21T20:24:38","slug":"home-inspection-home-appraisal-question","status":"publish","type":"post","link":"https:\/\/theamericangenius.com\/housing\/homeownership\/home-inspection-home-appraisal-question\/","title":{"rendered":"Confusion spreading over home appraisals, Realtors speak up"},"content":{"rendered":"

You\u2019re gearing up to sell your home. Do you get a home appraisal or a home inspection (or both)? That\u2019s the question many agents are asking based on the Federal Housing Administration’s overhaul of its\u00a0Single-Family Housing Policy Handbook<\/em>\u00a0which was supposed<\/em> to offer loan originators more clarity on lending policies\u00a0and\u00a0loan underwriting\u00a0standards. As is often the case, some changes made to the property valuation policies are causing confusion and delays.<\/p>\n

<\/i> Read also: Top 5 most common MLS violations: Are you guilty?<\/a><\/strong><\/div>\n

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So what are they really trying to say?<\/h2>\n

There is growing confusion among consumers about whether they also need a home inspection. An appraisal makes sure a home meets FHA minimum standard requirements; it is different from a home inspection and does not replace it. Buyers should still get an inspection, and it’s often required by the lender.<\/p>\n

Consider: All properties bought or refinanced with an FHA loan have to be appraised by a HUD-approved home appraiser.<\/p><\/blockquote>\n

When purchasing a property with a conventional loan product, the appraiser focuses on determining the market value of the home; however, with an FHA-insured loan, the appraiser not only determines market value but also\u00a0inspects the home to ensure it meets certain minimum property standards.<\/p>\n

It appears that requiring appraisers to take on home inspection-type duties to ensure standards are met appears to blur the line between appraisals and home inspections.<\/p>\n

The chicken or the egg?<\/h2>\n

A\u00a0statement from the National Association of Realtors (NAR) points\u00a0out that \u201cBuyers, sellers and Realtors\u00a0are free to ask appraisers or lenders to consider additional property information, documentation and comparisons.\u201d They may also discuss the unique conditions of a home and its neighborhood with appraisers.<\/p>\n

Once an appraisal has been completed, explains NAR, \u201cAny communications about errors or offers of additional information must be with the client who ordered the appraisal, generally the lender.\u201d<\/p>\n

NAR President Tom Salamone, in an effort to help ensure the FHA home buying process functions smoothly and without delay, recently sent a letter\u00a0<\/a>to the Department of Housing and Urban Development concerning FHA’s handbook. NAR asked the agency to reconsider some of the language, especially that which requires appraisers\u00a0take on additional\u00a0home inspection-type duties that were not previously mandatory.<\/p>\n

Additional resources for agents about appraisals can be found at\u00a0realtor.org\/appraisal.<\/a><\/p>\n

#AppraisalvsInspection<\/h3>\n","protected":false},"excerpt":{"rendered":"

Some changes made to the property valuation policies are causing confusion and delays among realtors and home owners alike. Appraisals are a critical part of the real estate equation we must all tend to.<\/p>\n","protected":false},"author":337420,"featured_media":6946,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"wds_primary_category":0,"footnotes":"","jetpack_post_was_ever_published":false,"_links_to":"","_links_to_target":""},"categories":[602],"tags":[427,1012,1013,1014],"class_list":["post-7926","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-homeownership","tag-fha","tag-home-appraisal","tag-home-inspection","tag-policy"],"jetpack_featured_media_url":"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2016\/02\/woman-working.png","jetpack_sharing_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/7926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/users\/337420"}],"replies":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/comments?post=7926"}],"version-history":[{"count":3,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/7926\/revisions"}],"predecessor-version":[{"id":7948,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/7926\/revisions\/7948"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media\/6946"}],"wp:attachment":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media?parent=7926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/categories?post=7926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/tags?post=7926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}