FHA and VA appraisals check condition, not just value.
That is what catches sellers. The house appraises for the price and still fails, because it did not meet a minimum property standard that has nothing to do with what it is worth.
Sell it as isWhat gets flagged
Peeling paint on a pre 1978 house, missing handrails on stairs with more than a few risers, broken windows, inoperable heating, exposed wiring, active roof leaks or a roof with insufficient remaining life, and standing water in a crawlspace.
None of those change the market value much. All of them can stop the loan, because these appraisals evaluate safety, security, and soundness alongside value.
VA adds requirements of its own
VA loans in Kentucky generally require a wood destroying insect inspection, and Kentucky sits in a heavy subterranean termite region, so active findings are common. VA also has specific requirements around who may pay certain fees.
Between the WDO report and the minimum property requirements, older Kentucky housing fails VA appraisals regularly even when the buyer and the price were both fine.
Who is left as a buyer
Conventional buyers with more cash, renovation loan buyers who accept a slower and more documented process, and cash buyers. That is a much smaller pool than the one that was interested before the appraisal.
We do not order an appraisal and no minimum property requirement applies. Peeling paint, no handrail, a dead furnace, and a leaking roof are all normal for us.
Five questions. That is the whole thing.
We already know your situation from this page. Change it if it does not fit.
Question 1 of 5
What people ask about this
Can I just fix the flagged items?
Sometimes, if the list is short and you can fund it. Repairs generally must be completed and reinspected before closing, which means you pay first and get paid later.
Does a failed FHA appraisal follow the house?
FHA case numbers and appraisals are generally tied to the property for a period, which can affect the next FHA buyer. Ask your agent how it applies.
What if the buyer is willing to fix it themselves?
Usually the lender will not allow it. The condition typically has to be corrected before closing, not after.
Often it is more than one thing at once
Sell it as is.
No cost, no obligation, and nobody shows up at your door unless you ask them to.