What are the most common reasons an appraisal would be completed “subject to?”

“Does the appraiser need to go back out?”

“Do I have to get a professional to do the work or can the borrower?”

The most common reasons to complete an appraisal “subject to” are when there are existing conditions that affect the safety, soundness or structural integrity of the property. Examples of items that would require repair are cracks in the foundation, an active leaking roof, exposed electric wires, peeling or chipping paint on properties built prior to 1978. Minor conditions or deferred maintenance, cosmetic items…won’t require the appraisal to be “subject to”. FHA has stricter requirements than Fannie Mae, so when ordering FHA appraisals, be prepared.

The appraiser will almost always have to go back out to complete a final inspection once the repairs have been completed. Some items the UW can approve without a final inspection, like reviewing a roof certification. Some items will require a professional, such as a plumber or roofer. Sometimes a survey is needed to determine distances between a well and septic. Other items a borrower can complete if they’re capable, like putting a railing on a porch, or scraping and re-painting areas with chipping paint.

ABOUT NATIONWIDE APPRAISAL NETWORK- NAN is an industry leader in appraisal management, providing a unique approach to appraisal management through customization, innovation, and quality. NAN website – 888.760.8899