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The Body of Knowledge for Residential Real Estate Appraisal
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#1 VA Lenders Handbook (Pamphlet 26-7) Page 496
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Construction Inspections Change 3 14.05 Delayed Installation of Appliances and Finished Floor Covering What is Required With the exception of floor covering in bathrooms and wood…
VA Lenders Handbook (Pamphlet 26-7)  ·  VA-Lender-Handbook.pdf  ·  Page 496  ·  View at official source (VA.gov — Appraisers/Staff Appraisal Reviewer) →
Construction Inspections Change 3 14.05 Delayed Installation of Appliances and Finished Floor Covering What is Required With the exception of floor covering in bathrooms and wood finish flooring, installation of appliances and finished floor covering may be delayed until as late as just prior to loan closing, provided the third-stage inspection report includes the following: • In Section 1, a description of all appliances and finish floor covering to be installed as identified in the specifications, for example, carpet manufacturer’s name and carpet quality code number, and the living area(s) involved, if not obvious. • In Section 6, check “Prefinal Report Approved,” and “Certification is required that lender’s inspection prior to loan closing reveals satisfactory installation of specified appliances and finish floor covering as described in Item 1 in the area(s) identified in Item 1.” What is not Required A revised VA Value Notice is not required. July 14, 2003 14-133
#2 UAD 3.6 / URAR (FNMA) Page 17
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17 10. Inconsistencies in reporting Condition Appraiser noted that there are missing floor coverings in multiple rooms of the subject. They included these in the Defects, Damages,…
UAD 3.6 / URAR (FNMA)  ·  uad-lessons-learned-job-aid.pdf  ·  Page 17  ·  View at official source (fanniemae.com/uad) →
17 10. Inconsistencies in reporting Condition Appraiser noted that there are missing floor coverings in multiple rooms of the subject. They included these in the Defects, Damages, and Deficiencies (Unit Interior) table, but indicated that the recommended actions were None. By definition as seen in Appendix F-1: URAR Reference Guide, missing floor coverings should result in a C5 rating: • If this is intended to be an as-is appraisal due to the missing floor coverings, by definition this would be a C5. • If the appraisal was intended to be made subject to the installation of the floor coverings, then it could be made a C4.
#3 UAD 3.6 / URAR (FNMA) Page 140
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Unit Interior Appendix F-1: URAR Reference Guide Page 140 of 375 Version 1.3 Flooring Condition Status (Choose one for each Flooring Type) Allowable Answer Definition / Additional…
UAD 3.6 / URAR (FNMA)  ·  Appendix F-1 URAR Reference Guide v1.3.pdf  ·  Page 140  ·  View at official source (fanniemae.com/uad) →
Unit Interior Appendix F-1: URAR Reference Guide Page 140 of 375 Version 1.3 Flooring Condition Status (Choose one for each Flooring Type) Allowable Answer Definition / Additional Guidance No Finish The flooring is missing its final finish. Note: When Flooring Type is Subflooring Only, select this answer and indicate the location of the missing flooring in Condition Comment (10.048). Walls and Ceiling The appraiser must provide information about the walls and ceilings in the unit. The Walls and Ceiling row always displays in the Interior Features table. The information in this row applies to all walls and ceilings in the unit. Unit Interior - Interior Features: Walls and Ceiling Report Field ID Report Label When to Include Allowable Answers / Format Definition / Additional Guidance 10.044 Feature Always required Reference the Definition / Additional Guidance column Interior Feature • Walls and Ceiling Note: Photo(s) of the walls and ceiling may be provided, which display in Unit Interior Exhibits, with the caption “Walls and Ceiling”. An additional caption may be provided to further identify the photo. 10.045 Detail Always required Choose one or more allowable answers from the Definition / Additional Guidance column Ceiling Height(s): The approximate ceiling height(s) in the unit, rounded to the nearest foot. • Less than 7 feet • 7 Ft. • 8 Ft. • 9 Ft. • 10 or more feet • 2 or more stories 10.045 Detail Always required Choose one or more allowable answers from table (Ceiling Style) Ceiling Style: The style(s) of ceilings in the unit. • Barrel • Beams • Cathedral • Coffered • Drop • Flat • Tray • Vaulted • Other (Describe) 10.046 Quality Comment If needed to describe the current quality of the walls and ceilings in the unit Free-form A brief description of the quality of the walls and ceilings as of the effective date. For further expansion of commentary, use Unit Interior Commentary (10.061).
Chief Appraiser Says Reading the actual guideline text below — never a general AI guess
Here's what these guidelines say about missing floor covering: We have to report it and rate the property's condition accordingly—if the floor covering is completely missing, that's a C5 condition rating (meaning it needs to be fixed before closing), but if you're planning to install it before closing, it can be a C4. VA allows you to delay installing finished floor covering until right before loan closing as long as the inspection report describes exactly what will be installed and confirms it's done satisfactorily before you close. Fannie Mae considers worn or missing floor finishes as examples of minor deferred maintenance that can be reported "as is," but missing floor coverings in multiple rooms would typically require repair before closing rather than being treated as a minor condition. Straight from VA Lenders Handbook (Pamphlet 26-7), UAD 3.6/URAR (FNMA), and Fannie Mae Selling Guide — nothing added.
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