Photos from the field- FHA repair item or not?

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?

Is an empty pool a required FHA repair?

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.

Comments

  1. Thanks for clarifying my statement. I did not make the appraisal “subject to” the pool being repaired but the lender did require the repair.

  2. Wow, crazy photo Tom. I have run into a pool like this a few months ago. The borrower was not getting and FHA loan and the lender still made them repair it. It seems like everyone is concerns with safety and security these days.

    • That’s a good point Bryan. Even though the appraiser does not make the appraisal “subject to” the repairs being made, many if not all lenders, will probably call for the repairs to be be made since they want their security to be in tip top shape.

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