According to Fannie Mae To subject to? or not to subject to? According to Fannie Mae

Existing Minor Conditions Fannie Mae permits appraisals to be based on the “as is” condition of the property if there are minor conditions of normal wear and tear.

Examples of minor conditions and deferred maintenance include worn floor finishes or carpet minor plumbing leaks holes in window screens, or cracked window glass. * Always Supply Photos!

The appraisal report must identify and describe physical deficiencies that could affect a property’s safety, soundness, or structural integrity. Stop and call Class Appraisal for direction on how to proceed! The client may want to proceed and have the subject property appraised “subject to completion” of the specific repairs or alterations with appraised value based on the hypothetical condition that the repairs or alterations have been completed.

Examples of property’s safety, soundness, or structural integrity include, but not limited to: cracks or settlement in the foundation, water seepage, active roof leaks, curled or cupped roof shingles, or Inadequate electrical service or plumbing fixtures

Fannie Mae’s condition guidelines should not be confused with FHA minimum property requirements. Per Fannie Mae, appraisers’ may use extraordinary assumptions that not all deficiencies require repair.

Do you have any questions or concerns? Please, Stop and call Class Appraisal for direction on how to proceed! (866) 333-8311