- to have reasonable future utility, durability, and economy;
- to be safe to operate;
- to be protected from destructive elements; nor
- to have adequate capacity.
If the systems appear to be damaged or do not appear to function properly, the Appraiser must condition the appraisal for repair or further inspection.
If the property is vacant, the Appraiser must note in the report whether the utilities were on or off at the time of the appraisal.
If the utilities are not on at the time of observation and the systems could not be operated, the Appraiser must:
- render the appraisal as subject to re-observation;
- condition the appraisal upon further observation to determine if the systems are in proper working order once the utilities are restored; and
- complete the appraisal under the extraordinary assumption that utilities and mechanical systems, and appliances are in working order.
If systems could not be operated due to weather conditions, the Appraiser must clearly note this in the report.
The Appraiser should not operate the systems if doing so may damage equipment or when outside temperatures will not allow the system to operate. Electrical, plumbing, or heating/cooling certifications may be required when the Appraiser cannot determine if one or all of these systems are working properly.
Instructions detailing specific requirements for reporting the results of the appraisal are found in the FHA Single Family Housing Appraisal Report and Data Delivery Guide at https://www.hud.gov/program_offices/housing/sfh/handbook_references
For additional information see Handbook 4000.1 II.D.3.g at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh