Can FHA Appraisals Double As Home Inspections? -
[Cached Version]
Published on: 8/1/2000
Last Visited: 4/30/2001
Barry Wilson , vice president for quality control with Market Value Systems in Renton , WA and the Puget Sound area , says brokers have been overheard telling consumers that The FHA appraisal is as thorough as a regular home inspection , so you don't really need to spend that additional money..
Wilson , a member of the Expert Review Appraiser Panel for the Washington Department of Licensing , says the cost for FHA valuations has risen 12.5 percent since the rules went into effect because of the extra time required to complete the report , greater liability , and more paperwork.
Francois ( Frank ) K. Gregoire , with Gregoire & Gregoire , Inc. , a Florida appraiser active in St. Petersburg and Pinellas County , says the HUD ads suggest that appraisers are offering services which consumers might see as a home inspection..
Nowhere in the television ad is a home inspection mentioned , says Gregoire.The impression given the viewer , in my opinion , is the appraiser is looking out for the homebuyer and will make sure the improvements are in GOOD Condition..
HUD guidelines , says Gregoire , specifically state that , Appraisals performed for HUD/FHA are not intended to protect the buyer : they protect HUD.