HUD appraisal rules clarification good news for realtors

The National Association of Realtors says a new clarification of certain rules for home appraisal is good news for both appraisers and real estate agents

HUD appraisal rules clarification good news for realtors
Real estate agents were concerned earlier this year when the Federal Housing Administration’s “Single Family Housing Policy Handbook” included new requirements that appraisers operate and physically observe appliances during an appraisal. Realtors were concerned that the requirements overstepped the traditional role of the appraiser – and had the potential to make appraisals longer and more expensive.

But a new update to the handbook clarifies the requirement, according to the National Association of Realtors. The new guidance specifies that appraisers simply have to make sure certain appliances that contribute to a property’s market value are physically present.

That’s good news for real estate agents and appraisers, according to NAR President Tom Salomone.

“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,” Salomone said. “Requiring appraisers to perform duties that are better left to a home inspector only slows the process while potentially adding unnecessary costs.

“FHA did appraisers and consumers a big favor by clarifying appraiser duties and specifically listing the appliances to which this new guidance applies,” he added. “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.”