WASHINGTON – Oct. 10, 2016 – The National Association of Realtors® (NAR) raised concerns earlier this year when the Federal Housing Administration’s (FHA) “Single Family Housing Policy Handbook” included a new requirement for appraisers. Under the guidelines, appraisers had to operate and physically observe a home’s appliances during the completion of an appraisal.
According to NAR, this new inspector-type role far exceeded previously understood appraiser duties and had the potential to make appraisals longer and more costly for consumers.
In response to those concerns, HUD recently announced updates to their Single Family Housing Policy Handbook. According to the latest guidance, appraisers must simply note that certain appliances contributing to the market value of the property are physically present – they no longer have to take the time to make sure all types of appliances actually work.
“Appraisers have a lot on their plate, and their work is important to ensuring buyers, sellers, lenders and everyone else involved in a transaction has a credible source to turn to when determining the value of a property,” says NAR President Tom Salomone. “Requiring appraisers to perform duties that are better left to a home inspector only slows the process while potentially adding unnecessary costs.
NAR issued a statement saying it appreciated the way HUD handles the FHA appraiser issue.
“FHA did appraisers and consumers a big favor by clarifying appraiser duties and specifically listing the appliances to which this new guidance applies,” adds Salomone. “While there are still improvements to be made, FHA’s announcement provides our Realtor members with additional certainty as they continue playing a critical role in the home buying and selling process.”
© 2016 Florida Realtors®
Source: Florida Realtors Feed