Shillam Homes


Considering selling, open up your home to the largest possible buying pool and include FHA, VA and other government back products. These are some of the issues you’ll need to repair prior to listing. If your looking at making a purchase and using a government-backed product the same will apply.

Top issues that cause a home to fail an appraisal.

There can be no peeling or missing paint on the house, outbuilding, barns, shop detached garage, railings, decks, patios porches, etc. if the home is prior to 1978, in addition to the peeling paint needing to be scraped, those scrapings must be removed from the property. The number 1 reason appraisers need to do a completion certificate is due to paint issues. Stained or treated wood does not need to be painted nor does a metal surface.

Must have a permanent heat source

Warped flooring, a small 3 x 3 area is fine, more than that, it must be fixed

No sinking foundation

There must be floor covering, vinyl, tile, hardwoods, etc. no bare floors

Cracked window panes are fine. If the pane has a hole in it that a finger can fit, the pane must be replaced

The roof must have at least two years left. If not, it must be replaced

Needs gutters

Stair railings for interior or exterior must meet city jurisdictional code. If the city says they are not needed, then they are not. However, if the appraiser deems it to be a safety concern, they could condition it to be repaired. Of course, the lender has the right to over-ride that condition

If the kitchen is built for a built-in stove, the home must be sold with a stove installed. If the stove is a push-in stove, it is not required

Water, electric, heat, A/C must all work

Hot water heaters must be double strapped

No frayed or exposed wiring

Water in the basement must be corrected so it does not continue

Dry rot must be corrected

This is not only FHA, but any loan. The CO detector must be installed; they can’t simply be sitting on the floor or counter. Number 2 reason must appraisers have to go back to a property!