Birmingham Appraisal Blog » Photos From The Field

How NOT to dispose of peeling paint for an FHA appraisal

Tom Horn — Wed, 09 May 2012 14:36:47 +0000

I wanted to share a photo with you that I took recently of a home I was appraising. It was for an FHA appraisal of an older house built prior to 1978. You may wonder why the year 1978 is so important, so I will tell you. It was in 1978 that lead paint was discontinued. Up until then paint had lead which is poisonous and can cause serious side effects and even death.

If a home was built prior to 1978 and it has peeling or chipping paint, the paint must be removed per HUD guidelines. Take a look at this picture and try to guess what is wrong.

Paint chips have been removed and left on the porch. These can be picked up by children and eaten, which can poison them. HUD states that the chips have to be removed from the house and disposed of so this cannot happen. Have you ever purchased a home with peeling paint that had FHA financing? What did you do to solve this problem? Leave me a message below to tell me what happened.

If you have any real estate appraisal related questions you can call me at 205.243.9304, email me, or connect with me on Facebook., Twitter, or Youtube.

Photos from the field- FHA repair item or not?

Tom Horn — Mon, 27 Feb 2012 15:57:59 +0000

On one of my inspections recently I came across this empty pool. The house I was appraising was not using FHA financing, however because FHA typically has more stringent requirements about the condition of a property I thought I might share the picture with you and ask a couple of questions: Do you think this would be an FHA required repair? If you are a Realtor listing this home, should you be concerned with getting it fixed before showing and selling it?

FHA has very specific guidelines relating to the safety, soundness, and security of a property that they are financing. Items that fall under the safety category relate to the health, sanitary condition, and habitability of the property. An empty pool would fall under this category. If the pool is empty there are numerous problems that can occur. Besides the fact that someone could fall in and get hurt, the functioning of the pool equipment cannot be verified. This can be expensive to repair or replace and FHA does not want the buyer to face future excessive costs. This is a vinyl liner pool and as you can see it is missing. The vinyl liner would need to be replaced and the pool filled with water. When this is done the functioning of the pool equipment can be verified.

In addition to the safety concerns, the security category would also be questionable. From past discussions we know security in this situation has to do with the property being used as security for a loan. FHA does not want to loan money on a home with a pool if the pool is not functioning and is not contributing value to the real estate, especially if the sales price includes a functioning pool. This would also effect the homes marketability. Of course we have already been discussing the soundness aspect because it is unsafe in its current condition. If you want to learn more about MPR items you can read my post titled- “Birmingham, Alabama Real Estate Agent Tips: What is an MPR?”

If you have any real estate appraisal related questions you can call me at 205.243.9304, email me, or connect with me on Facebook., Twitter, or Youtube.

The Chelsea Park Clock Tower

Tom Horn — Wed, 25 Jan 2012 22:43:37 +0000

I like to see landmarks. They help me locate places that I’m going to and help me know that I’m on the right track in getting to my destination. I was in the Chelsea Park neighborhood recently on an appraisal inspection and thought I would snap a picture of the clock tower that sits at the subdivision entrance.

If you think about it, landmarks like the clock tower can add character to a neighborhood and create a sense of cohesiveness within a subdivision, neighborhood, or community. Nice landmarks can make you proud to live in an area while landmarks that are run down or not well taken care of might produce a negative connotation, which could also effect property values in a harmful way. There really is no “adjustment” that an appraiser would make on their appraisal for such a thing, but I think that having something like this can bolster an areas desirability which could help increase property values. How do you feel about landmarks? Do you have any in your area? Do they create a positive or negative influence? Leave me a comment below and tell me your thoughts.

If you have any real estate appraisal related questions you can call me at 205.243.9304, email me, or connect with me on Facebook., Twitter, or Youtube.

Sales activity in Montevallo, Alabama for 2011

Tom Horn — Fri, 13 Jan 2012 13:24:14 +0000

I was in Montevallo, Alabama last week on an appraisal assignment and thought I would share with you the sales data I came up with. Montevallo is in southern Shelby County and is the home of the University Of Montevallo, The American Village, and the new Alabama National Cemetery for Veterans.

The majority of sales activity in 2011 was the sale of existing homes, however there was some new construction. The Birmingham Multiple Listing Service records indicates that only 9 new homes were sold last year. There are currently only 6 new homes for sale. Overall sales activity may seem minimal but it seems to be in line with annual sales over the past 3-4 years.

Take a look at my slideshow of scenes around Montevallo, along with the sales statistics contained it it, and let me know if you have any questions, I would love to help you.

If you have any real estate appraisal related questions you can call me at 205.243.9304, email me, or connect with me on Facebook., Twitter, or Youtube.

Birmingham, Alabama Home Sales-Most Expensive Home Sale YTD-November 2011

Tom Horn — Tue, 22 Nov 2011 04:01:13 +0000

It’s been a while since I looked at the most expensive home sale in the Birmingham, Alabama area. I took a break from this subject for a while but then discovered this was a pretty popular search topic for readers of my blog, so I decided to revisit the “most expensive home sale” and see what has happened.

The Birmingham area is made up of many great communities, many of the “most expensive” homes came from the Mountain Brook area, which is an upscale suburb in Birmingham. However in 2011 the most expensive home sale as of November is located in the town of Wilsonville in Shelby County and it sold for $3,224,681. The property consists of a home on a 12 acre island on Lay Lake. This is a very unique property that was part of a larger 50 acre horse farm that was divided up to be sold. Wilsonville, AL is in southeastern Shelby County and is mostly rural property with the Coosa River running south through it. The property was sold by Pam Ausley with RE/MAX.

If you have any real estate appraisal related questions you can call me at 205.243.9304, email me, or connect with me on Facebook., Twitter, or Youtube.

Signs of Real Estate Life In Vestavia Hills, Alabama-Miller Hill Subdivision

Tom Horn — Fri, 04 Nov 2011 15:23:52 +0000

I was doing some appraisal work in Vestavia Hills, Alabama this past week and ran across the Miller Hill Subdivision. This is a newer subdivision with new construction. I’ve reported in the past about the slow market for new construction, so when I see it I like to let people know the good news.

It seems like a lot of the new construction is being built by the larger companies who have been able to weather the bad economic storm. That is the case with the Miller Hill subdivision which is being developed by Signature Homes. A lot of the smaller companies have been forced out of business which is sad. I believe small businesses are the back bone of the country and I hope that as the country starts to recover the smaller companies will return to the market. Here are some pictures of the neighborhood.

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New home construction appraisals are a challenge in today’s market. There are several reasons for this. The first has to do with the limited number of new construction sales and the other has to do with certain mortgage underwriter guidelines. Appraisers are required to use comparables from other developments, and from other builders. This helps to give a more complete picture of whats happening in the market. If you just use sales from the subdivision the home is being built in, and from the same builder, it can give you an inaccurate view of the market. If you’re an appraiser are you having problems with this issue? Are you seeing any new construction in your area?

If you have any real estate appraisal related questions you can call me at 205.243.9304, email me, or connect with me on facebook.

Which Of These Houses Does Not Conform?

Tom Horn — Mon, 31 Oct 2011 12:45:25 +0000

Appraisers talk about conformity when describing houses that do not “fit in” to the neighborhood. Sometimes this can be subjective but you can usually tell when it has occurred. Neighborhoods have certain characteristics relating to price range, house style and various other factors. Some times house style and price range intersect and you have an overpriced home that stands out like a sore thumb. I don’t mean that it’s an eye sore but rather it does not fit harmoniously into the personality of the neighborhood. Check out this video and see if you can spot the home that does not fit in.

Well, did you guess which house it was? See, I told you it was pretty easy to spot. From an appraisal standpoint there could be an issue with the subjects conformity to the neighborhood and a possible over improvement. Both of these items can effect the value of the property. Have you ever seen something like this before? Do you know what effect it had on the properties value?

If you have any real estate appraisal related questions you can call me at 205.243.9304, email me, or connect with me on facebook.

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Dude, Where’s My Porch?

Tom Horn — Thu, 27 Oct 2011 20:36:26 +0000

Remember the movie “Dude, Where’s My Car?”, with Ashton Kutcher? I didn’t think so, it was not very memorable. These days Ashton Kutcher has more things to worry about than bad movies from his past, but the movie did come to mind when I saw this house.

As you can see, it is missing a porch. It is items like this that fall under the “safety” category when doing an FHA appraisal inspection. A property must meet certain guidelines to qualify for FHA financing. I covered these “MPR” items in a previous post. While there is a board nailed to the door opening to prevent potential accidents this would still not pass HUD guidelines. It would need to be corrected before a loan could be made on the property. This would include a refinance or a purchase loan.

There are two things that could be done. The door could be removed and the hole bricked up, or an adequate deck and stairs could be added so that access to the ground would be safe. It just so happens that the owners had added on a larger deck just to the right of the door and they had not yet addressed this issue. Also, the loan was conventional so the appraisal was not “subject to” the repair, however it will most likely be required by the lender to close the loan, depending on their underwriting guidelines. Have you ever seen similar items that would be FHA required repairs? Do you have one that your not sure of and need advice? I am always available to discuss these types of things, just call or email me.

If you have any real estate appraisal related questions you can call me at 205.243.9304, email me, or connect with me on facebook.

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What In The World Is A Tumble Bus And What Does It Have To Do With Appraising?

Tom Horn — Fri, 21 Oct 2011 13:32:26 +0000

The answer to the second question in the title is that the Tumble Bus has absolutely nothing to do with real estate appraisal. The answer to the first question is something I thought I would share with you. As a real estate a real estate appraiser in Birmingham, AL I get to drive around a lot and I see a lot of interesting things. I like to share things I see, especially if I think they are kind of unique.

I was doing some appraisal work in Vestavia Hills, AL this week and saw the Tumble Bus. I had never seen this before and thought it was very unique. I own a small business so I am interested in other small businesses and how they came up with their ideas to start them and also how people make them successful. In todays hard econcomic times we have to be creative and think outside the box to find things that can make our business more unique and valuable to our customers.

What could be more unique than a gym on wheels? Very cool idea to bring the playground to the kids! I won’t go into more detail but will give you their website if you are interested in reading about it. It looks like they have been in business for over 25 years. Why haven’t I heard about this? Have you ever used the Tumble Bus? What did you think?

If you have any real estate appraisal related questions you can call me at 205.243.9304, email me, or connect with me on facebook.

Birmingham, Alabama Appraiser-Photos From The Field: What In The World Is This?

Birmingham, AL Homes- The Forest Park Neighbhorhood in Pictures

Tom Horn — Fri, 20 May 2011 13:38:13 +0000

Birmingham, Alabama has a lot to offer in terms of neighborhoods and home styles. One of my favorites is the Forest Park neighborhood just east of downtown Birmingham. I was in the neighborhood this week working on an assignment. Most of the homes in Forest Park were built between 1900-1950 and have varying architectural styles. I personally believe these are the most attractive homes in the area. Each house has its own style and personality with the whole (neighborhood) being greater than the sum of the parts (houses).

In the past 12 months there were 39 homes that sold ranging in price from $112,500 to $875,000. Some of these homes are smaller and/or have not been renovated. Others are more architecturally attractive and have been extensively renovated. There are currently 61 homes for sale, ranging from $149,900 to $1,395,000. I hope you enjoy viewing the homes as much as I did in taking the pictures.

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If you have any real estate appraisal related questions you can call me at 205.243.9304, email me, or connect with me on facebook.