2011 FHA Appraisal Checklist for Home Buyers & Sellers

ChecklistFHA loans are more popular than ever with Ann Arbor home buyers. They are a good choice for many, as they typically only require a 3% down payment, a minimum FICO Score of 580, or a 10% down payment for new borrowers with less than 580 FICO score.

Did you know that qualifying for an FHA home loan is just the first step in the process?  The FHA appraisal is the next step in the process and you’re wrong if you think this is just the problem of the home seller. If the home you plan on purchasing doesn't pass this rigorous inspection, your loan won't be approved! Before the FHA will even begin checking the loan requested by the buyer, there must be an approved inspection report.

The minimal appraisal guidelines require that the property must be free of hazards that affect the health and safety of the property’s occupants. Here is a general list of guidelines to help both buyers and sellers.

  • Heating & Cooling Systems. Must be in working order. Heating for cold areas and cooling for hot areas. An appraiser may require certification from a qualified contractor.
  • Electrical. Must be available and checked for safety and that it meets code.
  • Water & Sewage. Hot & cold, potable water must be available and connected to city or community systems. If well & septic, must conform to local requirements. There must be proper water pressure and flushing toilets.
  • Termites. Property will be inspected for termite damage, but a termite inspection is not required if there is no evidence of infestation.
  • Attics & Crawl Spaces. Must be properly ventilated and show no evidence of dampness or deterioration.
  • Grading and Soil. Property must be properly graded to allow water to drain away from the house and soil must be free from contaminants.
  • Lead Paint. If the home was constructed before 1978, the interior and exterior will be checked for defective, peeling, or chipped paint.
  • Bedroom Egress. Must be able to exit to the exterior in case of fire. Window bars must meet fire safety codes.
  • Smoke detectors must be installed and in working order.
  • Repair requirements will be necessary for health and safety issues for broken windows, blocked doorways, steps without handrails.

You can view the entire handbook here. and see all of the exact requirements the FHA appraiser must follow. While FHA appraisals may be a bit more stringent that conventional, the main goal is to provide the home buyer with a hazard free new residence. If an Ann Arbor area move is in your future, check out all of the neighborhoods on Subdivision Hotline and if an Ann Arbor condo is more you style, check out all communities at the Condo Hotline where you can get up-to-date active and sold listing information for all of Washtenaw County. Should you have any FHA loan or Ann Arbor real estate questions, just give us a call at 734-761-3060 or info@bouma.com!

 



Posted Thursday, July 21, 2011 by Martin Bouma
Tags: ann arbor real estate, Ann Arbor Home Buyer, ann arbor home seller, FHA Appraisal Guidelines, FHA Appraisal Checklist, Ann Arbor Subdivision Hotline

June 2011 Ann Arbor Condo Market Update

Comparing the end of May to the end of June, the overall Ann Arbor condo market continues to see a decrease in inventory, and is down 7%. It is still considered to be in a buyer's market with a 7.4 months supply of units, which decreased from 8 (8%) over last month. Also up from the end of May is the number of units under contract with a buyer, 34%, and units sold in the past 12 months have also slightly increased. These are all good signs that point the Ann Arbor condo market beginning to stabilize.

Ann Arbor Condo Statistics

Returning to a balanced market is the under $100k and $100k-200k markets. The $200k-$300k is still in a buyer's market with a 10 months supply of condos. The biggest change we're seeing is in the $300k-$400k price point where the months supply decreased to 6.8, down 18%. Things have remained basically unchanged in all price points over $400k, except for 1 condo going under contract and all price points are in a complete buyer’s market. The Ann Arbor rental market is very strong, as sellers are choosing to rent their units and are very successful with this. The month’s supply is at a very low 2.7.

In the real estate market, if there is less than a 5 months supply of homes on the market, you are in a seller's market. A 5-7 month supply of homes is a balanced market. Anything over 7 months is a buyer's market.

The summer market is here, inventory remains relatively low, and interest rates are still at historic levels – now is the perfect time to get your condo listed for sale or make that condo purchase! To find out more about the market and Ann Arbor condo values, contact us today at 734-761-3060 or info@bouma.com. We'd love to talk with you about your Ann Arbor condominium!

Posted Monday, July 11, 2011 by Martin Bouma
Tags: market update, Ann Arbor Condos, Ann Arbor Condominiums, Market Statistics, ann arbor condo sales, Ann Arbor Condo Statistics

June 2011 Ann Arbor Market Update

Ann Arbor Home Stats June 2011

When comparing the end of May to the end of June, the overall Ann Arbor school district real estate market remained virtually the same. The number of homes under contract rose by 2%, while the number of homes for sale decreased by 2%. 4 price points had a decrease in inventory, 1 stayed the same, and 5 had an increase in inventory. The $200k-$300k range had the most significant change, and saw a decrease in inventory of 8%. There were 789 homes for sale with 31% under contract at the end of May. Here at the end of June, that number went down to 773 homes for sale, but rose to 33% under contract, which shows there has been increased home sales in the past month. The number of homes sold will begin to rise as they close over the next 30-60 days.

The Ann Arbor real estate market as a whole is in a buyer's market with a 9.7 months supply of homes, which is unchanged when compared to last month. Half of the price points have seen an increase and half have seen a decrease. The under $100k market saw the biggest change, the month's supply rose by 28%, putting it into a balanced market for the first time this year. The $700k-$800k saw a large decrease in months supply and went from 11 in May to 8.6 in June, due to the increase in sold homes in the past 12 months. Over $1M, we have a 27 months supply which means it would take 27 months for the current inventory to sell. All price points are in a buyer's market, with the exception of the under $100k market. With a 2.2 months supply, the rental market remains strong as sellers are renting their homes and waiting for their market to fully recover.

Comparing the end of June to the end of January, there has been an increase in inventory of 48% and an increase of homes under contract of 108%. The number sales in the past 12 months has decreased by 6%, pushing the months supply of homes up to 9.7 and going from an overall balanced market to a buyer's market.

In the real estate market, if there is less than a 5 months supply of homes on the market, you are in a seller's market. A 5-7 month supply of homes is a balanced market. Anything over 7 months is a buyer's market. There are so many great deals out there in the Ann Arbor subdivisions and downtown Ann Arbor area. Are you thinking of making a move in Ann Arbor or Washtenaw County? Give us a call at 734-761-3060 or info@bouma.com, we'd love to give you a tour of our area!

Posted Friday, July 08, 2011 by Martin Bouma
Tags: Ann Arbor Homes, ann arbor subdivision, ann arbor school district, ann arbor real estate market update, ann arbor real estate trends