Appraisal Check List

Appraisal comes back, processors to review within 4 hours, and send appropriate email to client and realtor. The following is a list of things to look for in the appraisal…


1. Make sure the sales price and the seller concessions matches the purchase contract




1. Well? (If so, we need a water test. Make sure the realtor has ordered)

2. Septic? (If so, we need the statement that the “well is free of observable failures,” somewhere in the addendum pages)

3. Private Road? (If so request private road maintenance agreement)

4. Flood Zone? (If yes, we need to inform all parties that we need flood insurance and a Flood Certification needs to be ordered and potentially an Elevation Certificate)

5. PUD? (Look for any HOA charges and add to the 1003)



1. Ensure that there is no listed External or Functional Depreciation. Basically, look for any negative comments. You will also find items listed needed to be repaired here.

2. No and Yes, are the only way you want to see boxes marked. Otherwise, we have a problem.



1. In ground Pool? ( If yes, we must deduct the contributory value)

2. Is there a Barn /outbuildings? Sq Ft? (If too large or is a farm outbuilding, we may need to deduct the contributory value). Also, check the pictures for more info on the  outbuildings. Also, look for anything that could be considered ‘income producing’ such as a mother in law’s suite, etc.


1. Make sure value is ok, and adjust the 1003 accordingly.

2. Was the appraisal completed AS-IS? (If not we must send an email to all parties informing them of the deficiencies and then scheduling a reinspection-442 w/ photos-once complete. The reinspection cost will be $150 charged to the buyer.)



1. Ensure that the HUD handbook statement is listed

2. READ THIS ENTIRE SECTION to look for deficiencies such as the Utilities not being on as in this report.



1. The Opinion of Site Value cannot exceed 30% of the appraised value. (If so we need the appraiser to comment: Need to know if it is common for the area, if it affects marketability, and must comment whether the land can be subdivided.)

2. Remaining Economic Life Must be more than 30 Years


Before you finish with your appraisal review, make sure you review the following and make appropriate changes…

1. Check to ensure the appraisal invoice, HVCC certificate and appraisal license are present.

2. Make sure the EMD, Concessions, and Purchase Price are corrected and match the 1003

3. Get a new pre HUD with the correct loan amount (lenders require)

4. Update all title, credit, VOE, and appraisal charges

5. Put correct title charges on page 2 of 1003

6. Make sure funding fee is correct

7. Cross check the buyer and seller of record (top of first page) with the title commitment.