Georgia FHA Appraisal Process Explained: Key Tips for Buyers & Sellers

Brooke Dyer
Aug 8, 2025
4 min read

When you’re buying or selling a home with an FHA loan, the appraisal is one of those “make-or-break” steps that can cause anxiety for everyone involved. Unlike conventional loan appraisals, FHA appraisals have two purposes:

Determine the home’s market value
Ensure the home meets FHA’s minimum property standards

If you’ve never been through one before, here’s what to expect — and a few insights from my own experiences helping buyers and sellers navigate the process.

How FHA Appraisals Work

The lender orders the appraisal through an FHA-approved appraiser. This is not the same as a home inspection — the appraiser is there to:

Compare the home to similar properties recently sold in the area to determine value
Look for any safety, security, or structural issues that need to be addressed before closing

FHA’s Minimum Property Standards

FHA loans are designed to help buyers purchase safe, livable homes — so the property must meet certain criteria before the loan can be approved.

Common FHA “red flags” include:

Peeling paint on homes built before 1978 (lead paint risk)
Missing or damaged handrails on stairs or decks
Roofs with less than two years of remaining life
Trip hazards, exposed wiring, or missing outlet covers
Evidence of water damage or structural issues

📌 Seller Tip: It’s important to keep these requirements in mind when accepting an FHA offer, as the appraisal can come back with required repairs. This is something your listing agent should walk through with you before the home hits the market and again when reviewing offers.

📌 Buyer Tip: FHA’s commonly flagged items should be on your radar during house hunting and reviewed closely in your home inspection report. Spotting these early can prevent last-minute surprises that could delay or jeopardize your loan approval.

What Happens If Repairs Are Required

If the appraiser or FHA underwriter note any issues that don’t meet FHA standards, those repairs must be completed before closing. The appraiser will then do a re-inspection to confirm the repairs are complete.

In an FHA contract, the FHA Amendatory Clause and Contingency clearly outlines who is responsible for completing those repairs and up to what dollar amount. This is critical for listing agents to review with their sellers before accepting an offer, and just as important for buyer’s agents and buyers to pay attention to when house hunting. If you can spot potential FHA repair items early, you can ensure the repair budget written into the contract is realistic for the property — avoiding last-minute contract disputes.

📌 If the repair costs exceed the agreed-upon limit in the contingency and neither side will cover the difference, the contract can terminate.

If the Appraisal Comes in Below the Contract Price

If the appraisal value is lower than the purchase price, FHA will only finance up to the appraised value. The buyer and seller have three main options:

Renegotiate the price to match the appraised value
Buyer brings the difference in cash (on top of their down payment and closing costs)
Terminate the contract if neither party can bridge the gap

If the appraisal or required repairs aren’t completed in time, the closing could be delayed — or in worst-case scenarios, the deal could fall through without agreed extensions.

The Appraisal Timeline

Order to initial visit: Usually 3–7 business days
Report delivery: Typically 2–3 days after the visit
If repairs are needed: Add in time for completion + re-inspection (often 5–10 days extra)

For Buyers: It’s smart to pad your appraisal contingency to allow enough time for the initial appraisal, review, and any required repairs/re-inspections. This extra buffer can prevent you from being backed into a corner with an expiring contingency.

How Buyers & Sellers Can Prepare

For Sellers:

Knock out obvious repairs before listing (especially safety items)
Keep utilities on for the appraiser’s visit
Make sure all areas are accessible (including attics, crawlspaces, and outbuildings)
Review FHA’s common repair flags with your listing agent before accepting an offer

For Buyers:

Understand that FHA appraisals are typically stricter than conventional ones
Pad your appraisal contingency to account for possible repairs and re-inspections
Keep FHA’s most common repair items in mind during house hunting and inspections
Partner with an agent who knows how to navigate the process without unnecessary delays

Selling or Buying with fha in mind

An FHA appraisal doesn’t have to be stressful — but it does require planning, transparency, and quick action if repairs are flagged. As a Realtor who’s navigated many FHA transactions, I’ve seen firsthand how small details can make or break your timeline. By preparing ahead of time and knowing what to expect, you can move from appraisal to closing with confidence.

If you’re selling in an area or price range that tends to attract many FHA buyers, it’s especially important to keep these key points in mind when preparing to sell. Addressing potential FHA repairs before listing, understanding the appraisal timeline, and knowing how the contingency works can help you avoid delays and keep your deal on track.

If you’re planning to buy or sell in North Georgia using FHA financing, let’s talk through a custom plan to make the appraisal process as smooth as possible.