Starting November 2nd appraisals are changing in a major way for real estate, specifically for fix and flip investors or investors who own rental properties and then ultimately sell the property. How the appraisals are changing is that the appraiser who goes out to the property for the end-buyer – not the investor purchasing the property -after you fixed it up and go to sell the property the new appraisal is called a UAD 3.6 and it’s going to require that the appraiser look at each individual room – the kitchen, the bathroom and give it a rating and they’re going to be looking at what permits were pulled for the property. A lot of real estate investors do not pull permits on properties so If you are an investor who renovate homes or rent a property owner who fixes up your homes it is imperative that you pull permits for all significant work you do on those buildings.
The information available from FHA is very dry reading targeted at the lenders so that they can be compliant. So the best place to get more information on this change is from your lender.
