- CHEAT SHEET- BE PREPARED
🧱 Appraisal Essentials — Required Repairs that Trigger “Subject To”
Even “as‑is” sales must meet minimum safety and soundness standards under Fannie Mae and Freddie Mac guidelines.
Here’s a sample of typical required repair before the appraisal can be completed “as is”:
🎨 1️⃣ Cracked or Peeling Paint — Built Before 1978
Any deterioration of paint on homes built prior to 1978 is presumed to contain lead‑based paint.
🔹 Must be repaired and repainted using lead‑safe methods before closing.
🔹 Applies to interior, exterior, garages, and accessory structures.
📖 Source: Fannie Mae Selling Guide B4‑1.3‑06; Freddie Mac 5601.12; EPA Lead Regulation 24 CFR 35 / 40 CFR 745
🪜 2️⃣ Missing Handrails to Basement or Stairs (3 or More Steps)
If stairs have three or more risers, or present fall potential, they need a secure handrail.
🔹 Missing or loose handrails = Safety Hazard
🔹 Appraisal should be “Subject To Installation.”
📖 Source: Fannie Mae B4‑1.3‑06 / Freddie Mac 5601.12; International Residential Code (IRC R311.7.😎
🛠 3️⃣ Missing Railings on Decks, Stoops, or Porches ≥ 28–30″ Above Grade
A guardrail is required for any walking surface elevated ≥ 30″ above ground.
🔹 “Subject To” completion if railing is missing or unstable.
📖 Source: IRC R312.1.1; Fannie Mae B4‑1.3‑06; Freddie Mac 5601.12
📌 Bottom Line:
Under GSE rules, anything affecting health, safety, or structural soundness is not eligible “as‑is.”
Appraise “Subject To” correction—protecting both borrower and lender.
💬 For Appraisers: Accuracy. For Realtors: Clarity. For Clients: Confidence.
#ArtOfAppraisal #shawnfoppeappraisal #realtor #valuation
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- CHEAT SHEET- BE PREPARED
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