Foreclosure in Denver>Question Details

Managod1, Home Buyer in Denver, CO

FHA Appraisal The utilities were not on. Am I able to this appraisal with a Hypo Assum that the utilities are in working order?

Asked by Managod1, Denver, CO Wed Aug 28, 2013

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8
Managod,

Are you referring to an inspection or an appraisal. Either way, you need to make arrangements for the utilities to be turned on to get the information you need. An FHA appraiser will require that the utilities are on so he can appraise the property according to FHA guidelines.

Robert McGuire
Broker/Consultant
Your Castle Real Estate
http://about.me/robertmcguire33
0 votes Thank Flag Link Sat Aug 31, 2013
Generally speaking water and utilities need to be on at time of inspection
0 votes Thank Flag Link Thu Aug 29, 2013
You can have the utilities turned on for a day or so to have the appraisal and the inspection done.

Ethan Besser
Keller Williams DTC
realestatecoloradonow.com
0 votes Thank Flag Link Wed Aug 28, 2013
Since the utilities are off, this might be a HUD or similar post-foreclosure. If that is the case, best to double check there is an electric meter. Frequently those are removed by Xcel on long vacant foreclosed properties. You will want to get all utilities turned on for inspection and appraisal. There are fees for this and to re-winterize the property.
0 votes Thank Flag Link Wed Aug 28, 2013
Yes definitely. Conventional is also the same when it comes to this same issue.

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Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Wed Aug 28, 2013
And just so you know - there is an additional fee for the appraiser to go out a second time.
0 votes Thank Flag Link Wed Aug 28, 2013
Javier is correct. An appraiser will have to verify the utilities are on and operational, if the Buyer moves ahead with FHA financing. This serves to protect the Buyer, ensuring the property is habitable, and to prevent unexpected repairs after purchase. I am seeing more and more lenders, in the case of conventional loans, issuing the same requirement.
0 votes Thank Flag Link Wed Aug 28, 2013
Absolutely not. Appraiser's supposed to attest to the fact that ulitilies are in working condition by actually turning on lights, etc. If utilities are not on at the time of appraisal inspection, the appraiser supposed to make it an appraisal condition for the utilities to be turned on and in working condition, and the appraiser supposed to then go back to the property and re-inspect and issue an update appraisal.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Wed Aug 28, 2013
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