FHA Appraisal

FHA Appraisal Red Flags to Watch For in Worcester, MA

When you’re buying or selling a home using FHA financing, the appraisal process is more than just a valuation—it’s also a property condition check. FHA appraisers look for safety, structural, and livability issues that can impact the loan’s approval. For buyers and sellers in Worcester, MA and Worcester County, understanding these potential red flags early can help avoid costly delays and keep your transaction on track.

Common FHA Appraisal Red Flags

These are some of the most common issues FHA appraisers flag during inspections. Identifying and addressing them before the appraisal can prevent required repairs or last-minute surprises:

Red Flag	What It Means	How to Address It
Missing or inadequate heating system	FHA requires a permanent, safe heat source. Plug-in or portable heaters don’t qualify.	Install or repair hard-wired baseboard or central heating systems before the appraisal.
Roof issues	Roof nearing end-of-life, missing shingles, flashing problems, or leaks can trigger repair requirements.	Have the roof inspected and address vulnerable areas or leaks proactively.
Structural problems	Major cracks, shifting, or bowing in foundations or walls may be viewed as structural defects.	Get a structural evaluation and follow recommended repairs before listing.
Water intrusion or drainage issues	Basement moisture, poor drainage, or standing water raise red flags.	Correct grading, improve gutters/downspouts, and install sump pumps if needed.
Plumbing issues	Non-functioning toilets, no hot water, or major leaks are unacceptable.	Repair or replace fixtures and confirm plumbing is in working order.
Electrical problems	Knob-and-tube, exposed wiring, or non-functioning outlets can be flagged as unsafe.	Have a licensed electrician correct and document all work.
Broken windows or doors	Broken or missing windows/doors create safety, security, and energy efficiency issues.	Repair or replace damaged windows and doors prior to the appraisal.
Unpermitted additions	Non-conforming additions or unpermitted spaces can be disallowed by FHA.	Work with local authorities to retroactively permit or bring additions up to code.

FHA Property Condition Checklist

FHA appraisers use a property condition checklist to identify potential issues. Walking through the property with this in mind can help you catch problems early. Here are key areas they look at:

Exterior & Structure

Roof: Missing shingles, flashing, holes, or visible leaks will likely trigger repairs.

Paint: Homes built before 1978 with peeling or chipped paint may require remediation for lead-based paint. Bare or unprotected wood after 1978 must also be addressed.

Foundation & Slab: Significant cracks, erosion, or bowing affecting structural soundness must be evaluated.

Crawl Spaces & Basements: Must have adequate access, no ponding water, and intact support beams.

Systems

Electrical: Non-functioning outlets, exposed wiring, sparks, or frayed wires are not acceptable.

Plumbing: No hot water, major leaks, or non-functioning toilets will need repair before approval.

Heating: Must produce heat safely and be permanently installed—portable heaters are not acceptable.

A/C Units: If present, must function properly without unusual smells or smoke.

Pools & Additional Features

Pools must be operational and maintained. Non-functional or unsafe pools may require repair, removal, or coverage before closing.

Pro Tips to Avoid FHA Appraisal Surprises

Walk through the home with your agent before listing and flag potential issues early.

Document upgrades and repairs with invoices, permits, and before/after photos.

Get quotes for any identified red flags so you’re prepared for negotiations.

Focus on FHA-required repairs rather than over-improving the property.

Work with an agent experienced in FHA transactions who understands common pitfalls.

Why This Matters in Worcester County

Homes in Worcester County face unique challenges—freeze-thaw cycles, older housing stock, and moisture can all increase the likelihood of FHA appraisal flags. By taking a proactive approach, you can protect your timeline, reduce stress, and keep the deal moving forward smoothly.

Ready to Get FHA-Ready?

Whether you're a seller preparing to list or a buyer looking to understand the process, identifying potential FHA red flags early gives you an edge.

👉 Schedule a pre-appraisal readiness consultation to make sure your property clears the FHA appraisal smoothly.

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Legal Disclaimer: I am not a licensed attorney and do not provide legal advice. I collaborate closely with your probate attorney—or can refer a qualified professional—to help ensure legal compliance and a smooth, well-coordinated closing process.