Many buyers believe that an appraisal will uncover problems in a home. While it’s true that obvious problems will be flagged, appraisers are not home inspectors. An appraiser’s job is to make sure the property’s market value is in line with the sales price to protect the bank’s investment.
To clear up this confusion, the Department of Housing and Urban Development (HUD) requires FHA buyers to sign a form affirming that they understand the appraisal is not an property inspection or warranty. HUD received many complaints from people who thought FHA appraisals should have found problems that surfaced after they moved in.
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