What the Heck is going on with Appraisers?

[Rob Knoles]

Has anyone else noticed a dramatic increase in their scope of work and powers? I am having to bend over backwards to finish their "punch list" of issues on my property before we can close....this is after I have already jumped through the inspectors list from the buyer.

I am having to install handrails, carbon monoxide detectors, repair minor foundation cracks, and more.

What the heck is going on?

Thank you for any insight.

[Phillip Dwyer]

FHA has minimum property standards that must be met before the loan can be done. They charge the appraiser with the task of checking to make sure the property meets these standards during the appraisal inspection. If the property doesn't meet the standards, the appraisal is completed subject-to the property meeting those requirements. Once the repairs have been completed, the appraiser goes back out to the house to verify. This has been the case for several years in all states. That said, part of the requirements is that the property must meet local/state building codes. I've been seeing clauses on appraisal orders referencing carbon monoxide detector requirements for properties located in California. Also, lenders can add more stringent requirements (overlays) on top of the FHA minimum standards.
Fannie Mae and Freddie Mac also have requirements, but these tend to be less stringent than FHA.