How to Price a Short Sale Property to Get Lender Approval (And Avoid Common Misconceptions)

If you’re considering a short sale, one of the biggest questions I get is:
“How do we price the home so the bank will actually approve it?”

And right behind that is a myth that can stop people in their tracks:

“I was told my short sale won’t be approved because I have money in the bank.”

Let’s clear that up first—because it matters.

The Truth About Cash in the Bank (Especially for VA Sellers)

I recently spoke with a homeowner who was told their short sale wouldn’t be approved because they had some savings. That information came from a third-party company—not directly from the VA.

Here’s the reality:

• Having money in the bank does NOT automatically disqualify you from a short sale
• Lenders (including VA-backed loans) look at your overall hardship, not just one account
• You may be asked to contribute (cash, promissory note, etc.), but that’s negotiated

Every situation is different. This is exactly why working with someone experienced in short sales matters—because misinformation can cost you options.

Why Pricing Matters More Than Anything

When it comes to short sales, pricing isn’t about “testing the market.”

It’s about one thing:
👉 Getting lender approval

Price it wrong, and:

• You won’t get offers
• Or worse—you’ll get offers the bank rejects

How to Price a Short Sale the Right Way

1. Price at (or Slightly Below) True Market Value

The bank will order their own valuation—usually a BPO (Broker Price Opinion) or appraisal.

If your price is:

• Too high → no activity
• Too low → bank may counter or reject

The sweet spot is:
✔️ Competitive with recent comparable sales
✔️ Attractive enough to generate offers quickly

2. Create Urgency with Strategic Pricing

A strong short sale strategy often means pricing:

• Just under market value
• In a range where buyers are actively searching

This helps:

• Drive multiple offers
• Strengthen your position with the lender

Banks are more likely to approve when they see:
✔️ Real buyer demand
✔️ Solid offers backed by market data

3. Condition Matters—A Lot

Short sale homes are often sold as-is, so condition plays a big role in pricing.

Ask:

• Does the home need repairs?
• Are there inspection concerns?
• How does it compare to nearby listings?

If the home isn’t turnkey, the price needs to reflect that.

4. Tell the Full Story to the Lender

Pricing alone isn’t enough—you also need a strong short sale package, including:

• Hardship letter
• Financials
• Market analysis
• Repair estimates (if needed)

This helps justify the price to the lender and speeds up approval.

5. Be Prepared for Negotiation

Even with the right price:

• The bank may counter
• They may request seller contribution
• They may take time reviewing everything

This is normal.

The key is having:
✔️ A strong initial strategy
✔️ An agent who knows how to negotiate with lenders

Common Pricing Mistakes to Avoid

• ❌ Overpricing because you “need” a certain number
• ❌ Underpricing too aggressively without support
• ❌ Ignoring condition or needed repairs
• ❌ Taking advice from non-lender sources as fact
• ❌ Hiring an agent without short sale experience

Final Thoughts

A successful short sale is part strategy, part negotiation, and part experience.

And here’s the truth most people don’t hear:

👉 It’s not just about your finances—it’s about how your case is presented.

If you’ve been told you don’t qualify, or you’re unsure where you stand, it’s worth having a real conversation with someone who understands the process—not just someone repeating general advice.

Thinking About a Short Sale?

If you’re in Utah and wondering:

• “Do I qualify?”
• “What could my home sell for?”
• “Will the bank approve it?”

Let’s talk. I’ll walk you through your options and give you a clear, honest strategy—no pressure.

Google my name to connect, or reach out directly—I'm here to help.

Nancy Bergman

Salt Lake Home Pros | Fathom Realty | SFR - Short Sale and Foreclosure Specialist

nancybergmanrealtor@gmail.com

858-617-9449

Free Short Sale Guide ===>  https://www.saltlakehomepros.com/utah-short-sales-explained-seller-buyer-guide-real-estate-utah/

#UtahRealEstate #ShortSaleExpert #UtahShortSale #SaltLakeRealEstate #WestJordanHomes #UtahHomesForSale #RealEstateHelp #AvoidForeclosure #ShortSaleSpecialist #HomeSellingTips #RealEstateAdvice #UtahRealtor #DistressedProperty #ForeclosureAlternatives #SellYourHomeUtah #HomeownerHelp #RealEstateEducation #HousingMarketUtah #UtahHousing #ListWithMe #westjordan #southjordan #herriman

If you’re getting a tax refund this year, here’s something worth thinking about. That money could actually help you get closer to buying a home.

It may not be something you’ve factored into your plan yet, but it can give your savings a nice boost right when you need it most. And whether your refund is a few thousand dollars or more, there are some smart ways to put that money to work as you get ready to buy.

Your Refund May Be Even Bigger This Year

Let’s start with the good news. People are getting even more money back in their refunds than they did last year. The visual below uses data from the Internal Revenue Service (IRS) to show the average individual’s refund is 11.1% higher this year:

Of course, your exact refund will vary. But any extra money you get is a good thing, especially when affordability is still tight. 

How You Can Use Your Tax Refund

So, how can you put that money to work? Here are a few smart ways to use your refund when buying a home, according to Freddie Mac:

• Put it toward your down payment. Data shows saving for a down payment is one of the biggest hurdles for first-time homebuyers. Using your refund can help you build that up faster. And the good news? You may not need to put as much down as you think.
• Use it for your closing costs. Closing costs usually range from about 2% to 5% of the home’s purchase price. Using your refund here can make things feel a lot more manageable on closing day.
• Lower your mortgage rate. You may have the option to buy down your mortgage rate. That means paying a little more upfront to get a lower monthly payment. If you’re looking for ways to make the numbers work a little better, this is something that could be worth asking about.

You Don’t Have To Figure This Out Alone

If you have a tax refund coming, it’s a great time to take another look at your homebuying savings. Maybe you’re almost at your goal and you can buy sooner than you expected.

I can assist you and one of my trused lenders can help you map out what you need, what your options are, and how to make the most of what you already have, including your tax refund.

Bottom Line

If buying a home is on your radar this year, don’t overlook your tax refund. It could be the extra push that helps you go from almost there to actually ready.

Want to see how far your tax refund can take you toward homeownership? I’d love to help you get started. Nancy Bergman 

Salt Lake Home Pros | Fathom Realty

www.saltlakehomepros.com

From Keeping Matter Current

#TaxRefund
#HomeBuyingTips
#FirstTimeHomeBuyer
#UtahRealEstate
#SaltLakeRealEstate
#UtahHomes
#HomeOwnershipGoals
#RealEstateTips
#BuyAHome
#DownPaymentHelp
#HouseHunting
#UtahRealtor
#RealEstateLife
#MortgageTips
#FinancialGoals
#WealthBuilding
#SmartMoneyMoves

#WestJordanRealtor

#SouthJordanRealtor

✨ Friday Finds – Salt Lake Real Estate Update + Weekend Guide ✨

Happy Friday! 👏
Here’s your quick snapshot of what’s happening in the market—plus a few things to do around Salt Lake this weekend!

🏡 This Week’s Finds Include:
• Homes under $400K (yes… they’re still out there 👀)
• Great options in West Jordan & nearby areas - South Jordan, Taylorsville, Herriman
• Hidden gems that could go quickly
• Properties with potential for instant equity

📊 Salt Lake Market Update:
Inventory is still tight, but we are seeing opportunities for buyers who are ready to act fast. With some buyers pausing due to rates, it’s creating small windows of opportunity.

Also worth noting… short sales are making a small comeback.
I worked extensively with short sales when I first started in real estate, and I know how to guide sellers through the process. I started a page on my website to help navigate this challenge. Short Sales in Utah

If you—or someone you know—is dealing with financial challenges, there may be options. A short sale can help avoid foreclosure and reduce long-term credit impact. I’m here to help navigate that conversation confidentially.

🌸 Spring Home Maintenance Tips:
• Service your A/C system
• Clean gutters & check drainage
• Test sprinkler systems
• Inspect roof & exterior for winter damage

🎉 Things to Do in Salt Lake This Weekend:
• Local farmers markets opening for the season 🌿
• Hiking, parks & outdoor fun with warmer weather ☀️
• Spring events and pop-ups across the valley

📲 Want this week’s full list of homes?
Message me “FRIDAY FINDS” and I’ll send over the top picks.

Nancy Bergman

Salt Lake Home Pros | Fathom Realty

www.saltlakehomepros.com 

858-617-9449

#SaltLakeCityRealEstate #UtahRealEstate #WestJordanHomes #SaltLakeHomesForSale #UtahHomesForSale #SaltLakeRealtor #UtahRealtor #HomesUnder400K #FirstTimeHomeBuyerUtah #UtahHousingMarket #SaltLakeMarketUpdate #UtahRealEstateAgent #HomeBuyingUtah #SellMyHomeUtah #ShortSaleUtah #UtahShortSaleExpert #AvoidForeclosureUtah #RealEstateTipsUtah #SpringHomeMaintenance #SaltLakeLiving #LivingInUtah #UtahHomes #HouseHuntingUtah #FridayFinds #SaltLakeCountyHomes

Buying a Home in West Jordan Under $400K: A Real Client Success Story

In today’s ever-changing real estate market, timing, strategy, and local knowledge matter more than ever—especially here in West Jordan.

Home prices, inventory, and buyer demand are constantly shifting. What worked even just a few months ago may not be the best approach today. Buyers are becoming more selective, opportunities exist in specific price points, and navigating the process takes patience and the right guidance.

I recently had the opportunity to help a set of buyers who were determined to stay under $400K—a challenge in this market, to say the least. We explored a range of homes together, from ones that almost made the cut… to a definite “no” (yes, one even came with rats 😅).

But here’s what made the difference: we didn’t rush.

We stayed patient, kept a close eye on the market, and when the right home came up—we were ready. Because of that, my clients are now officially under contract on a home that truly fits their needs.

Why Experience Matters

Buying a home isn’t just about finding something you like—it’s about knowing:

• When to act quickly
• When to walk away
• How to compete in your price range
• And how to spot the right opportunity when it appears

That’s where experience makes all the difference.

Thinking About Buying?

If you’re considering buying a home and don’t know where to start, you’re not alone. The process can feel overwhelming—but it doesn’t have to be.

With the right strategy and guidance, you can navigate this market with confidence and find a home that truly works for you.

If you have questions or want to start exploring your options, I’m here to help every step of the way. If you're looking to buy a home in West Jordan or want to understand your options in today’s market, reach out today. I offer a free, no-obligation consultation to help you get started with confidence.

Nancy Bergman

858-617-9449

Salt Lake Home Pros - Fathom Realty

www.saltlakehomepros.com

#WestJordanRealEstate
#WestJordanHomes
#WestJordanRealtor
#UtahRealEstate
#UtahHomesForSale

#UtahShortSale

#TopRealtorWestJordan
#LocalRealEstateExpert
#UtahRealtorLife
#RealEstateExpert

Short Sale vs. Foreclosure vs. Deed in Lieu — What Utah Homeowners Need to Know

If you’ve found yourself falling behind on payments or just feeling overwhelmed by your mortgage, I want you to know something first… you are not alone. I’ve worked with many homeowners in this exact situation, and there are options—more than most people realize.

As someone who started my real estate career during one of the toughest markets, and as a Short Sales and Foreclosure Resource (SFR®), I’ve helped clients navigate these challenges with as much clarity and dignity as possible.

Let’s break down the three most common paths in Utah:

What is a Short Sale?

A short sale is when you sell your home for less than what you owe, and the lender agrees to accept that payoff.

I’ll be honest—this is often the most proactive and least damaging option for many homeowners.

With a short sale:

• You stay involved in the process
• We negotiate directly with the lender on your behalf
• You may be able to avoid foreclosure completely
• The impact to your credit is typically less severe

I’ve helped many clients through this, and while it’s not always easy, it can be a powerful way to move forward with less long-term damage.

What is Foreclosure?

Foreclosure is when the lender takes back the home due to missed payments.

In Utah, the process can move faster than people expect, because it’s typically a non-judicial foreclosure. That means once a Notice of Default is filed, the timeline to losing the home can be fairly quick.

With foreclosure:

• The bank takes control
• You lose the ability to sell on your terms
• It has a significant impact on your credit
• It can make it harder to buy again in the future

This is usually what we try to avoid whenever possible.

What is a Deed in Lieu of Foreclosure?

A deed in lieu is when you voluntarily give the home back to the lender instead of going through foreclosure.

It can sound like a simpler option, but it’s not always as straightforward as it seems.

With a deed in lieu:

• The lender has to agree
• There typically can’t be other liens on the home
• It still negatively impacts your credit
• You don’t have the opportunity to try and sell the home first

Sometimes it’s a solution—but usually only after other options have been explored.

Quick Comparison

Here’s a simple way I like to explain it:

• Short Sale: You sell the home with the bank’s approval
• Foreclosure: The bank takes the home
• Deed in Lieu: You give the home back to the bank

Or side-by-side:

So… What’s the Best Option?

Every situation is different. But if there’s one thing I always tell people, it’s this:

Don’t wait. And don’t just walk away.

You have options, and the earlier you explore them, the more control you have.

A Personal Note

This isn’t just business for me. I understand what it feels like to go through housing instability. I knew words like eviction and foreclosure at a young age, and after high school, I even lived in a family shelter.

That’s exactly why I care so much about helping people through these situations now.

If you’re feeling unsure, behind, or just want to understand your options—I’m here to help, no pressure, no judgment. Want to know what your home is worth? Salt Lake Home Value

Don’t just walk away—you have options, and I’m here to help you explore them.

When you’re ready, I’m here to listen—and I understand what it feels like to truly need a fresh start.

Nancy Bergman

Salt Lake Home Pros | Fathom Realty

www.saltlakehomepros.com

858-617-9449

#ShortSaleSupport #SFR #ShortSalesAndForeclosure #YouHaveOptions #UtahRealEstate #SaltLakeHomes #AvoidForeclosure #HomeownerHelp #RealEstateWithHeart #ShortSaleSpecialist #FreshStart #HousingSupport #RealEstateGuidance #LifeExperienceMatters

What Is a Short Sale? A Supportive Guide for Homeowners Facing Difficult Times

If you’re feeling overwhelmed by your mortgage or worried about what comes next, please know this—you’re not alone, and there are options available to you.

Life can change quickly. Whether it’s job loss, medical challenges, divorce, or unexpected financial strain, many homeowners find themselves in situations they never saw coming. If that’s where you are right now, take a deep breath. There is a path forward.

What Is a Short Sale?

A short sale is when your home is sold for less than what is owed on the mortgage, with your lender’s approval. Instead of going through foreclosure, the lender agrees to accept a reduced payoff.

While it may not have been part of your original plan, a short sale can be a graceful way to move forward—helping you avoid foreclosure and begin rebuilding sooner.

My Experience—And How I Can Help You

I began my real estate career in 2012 during a time when many homeowners were navigating these same challenges. I had the privilege of working alongside Elizabeth Weintraub, a highly respected short sale specialist based in Sacramento.

I am also a Short Sales and Foreclosure Resource (SFR®), which means I have specialized training and experience to guide homeowners through short sales and foreclosure alternatives with confidence, compassion, and care.

But my connection goes deeper than training. I grew up in a situation very similar to what many homeowners face today. Before the age of 15, I already knew what an eviction, a writ of eviction, and foreclosure were. Upon graduating high school, I lived in a Salvation Army family shelter. If there is any Realtor® who truly understands the challenges of life and financial hardship, it’s me.

When we work together, my goal is simple:

• To listen without judgment

• To explain your options clearly

• To handle the heavy lifting with your lender

• To help you move forward with dignity and less stress

What the Process Looks Like

I’ll walk with you through each step so you never feel alone in the process:

1. Private Conversation
We’ll talk through your situation and see if a short sale makes sense for you.

2. Simple Paperwork
I’ll help you gather the necessary documents—nothing overwhelming, just what’s needed.

3. Listing Your Home
We position your home to attract the right buyer.

4. Offer & Lender Communication
Once we receive an offer, I take over communication with your lender and negotiate on your behalf.

5. Approval & Closing
We move toward closing with clarity and support every step of the way.

Why Some Homeowners Choose a Short Sale

• To avoid the stress and impact of foreclosure

• To protect their credit as much as possible

• To take control of the situation instead of waiting

• To start fresh sooner

You Don’t Have to Figure This Out Alone

If you’ve received a notice or are starting to feel behind, it’s okay to ask questions. Even if you’re not sure what to do yet, having a conversation can bring relief and clarity.

Don’t just walk away—you have options, and I’m here to help you explore them.

When you’re ready, I’m here to listen—and I understand what it feels like to truly need a fresh start.

Nancy Bergman

Salt Lake Home Pros | Fathom Realty

www.saltlakehomepros.com

858-617-9449

#ShortSaleSupport #SFR #ShortSalesAndForeclosure #YouHaveOptions #UtahRealEstate #SaltLakeHomes #AvoidForeclosure #HomeownerHelp #RealEstateWithHeart #ShortSaleSpecialist #FreshStart #HousingSupport #RealEstateGuidance #LifeExperienceMatters

The Best Week To List Your House Is Just Around the Corner

From Keeping Current Matters: 

While the Spring season consistently offers up some of the best conditions for home sellers, Realtor.com says there’s one window where the stars really seem to align year after year. And it’s coming up fast.

Based on their analysis of historical trends, the ideal week to put your house on the market this year is: April 12–18.

And here’s why this window stands out as being particularly seller-friendly:

• Buyers Are More Active. According to the research coming out of Realtor.com, homes listed during this week typically get about 16.7% more views than in a normal week. And in a market where buyers have options, getting that extra attention can set the tone for your entire sale.
• Sales Happen Faster. Realtor.com also explains the added demand from buyers sets you up for a faster process. While homes have been taking longer to sell lately, homes up for sale this week were on the market for 17% less time than usual. And that’s a difference you’ll be able to feel.
• A Better Price for Your House. Since the number of homes for sale has grown, it’s normal for buyers to ask for credits, repairs, and price adjustments today. But, during this early Spring window, about 18.9% fewer homes do a price cut. That gives you a better chance of getting your full asking price.
• More Profit in Your Pocket. According to the study, well-prepped homes listed this week can command a price that’s about $5,300 more than the average week (and $26,000 more than homes at the start of the year).

And what seller doesn’t want more eyes on their house, getting an offer in hand sooner (rather than later), and their best shot at selling for top dollar?

What You Need To Do To Get Ready

If you’re already thinking about selling and you want to take advantage of this sweet spot, your next step is shockingly simple. Just talk to a local agent.

Their expertise on your area is going to be key over the next few weeks. Because these trends are going to vary by state, city, and even neighborhood. And your agent will use that insider knowledge to help you figure out what you need to do now to get your house ready. Including:

• What you’ll want to spruce up before listing
• How to prioritize any repairs (and contractors that can help)
• Quick wins that’ll have a big impact
• What buyers care most about today

For some sellers, that’s a few easy fixes they can knock out in the next couple of weeks. A fresh coat of paint. Some new mulch. Or some light Spring cleaning.

For others, it’s worth taking another month or so to make some minor updates before listing. And that’s okay. Because while this mid-April window may give sellers an advantage, it’s not your only opportunity to sell.

Zillow says the best time to list is in May. And that means the golden window for sellers isn’t closing after this one week. It’s open all season long.

Bottom Line

Getting your house on the market in mid-April may give you an extra edge, but the bigger opportunity is the Spring season as a whole. The real question is:

Do you know what you need to do before you can list?

Because it’s officially go-time for any seller planning a Spring move.

If you want your house to hit the market this week (or even this season), talk to me, Nancy Bergman at Salt Lake Home Pros about what it’ll take to get it ready.

Nancy Bergman - Fathom Realty

www.saltlakehomepros.com

858-617-9449 

#slcrealtors #utahrealestate #localrealtor #fathomrealtysaltlakecity #saltlakehomepros #listyourhome #selling #sellinginsaltlake #springmove #springseason

The Dark Side of Homeowners Associations (HOAs): What Every Buyer Should Know

Homeowners Associations (HOAs) can be a great thing—until they’re not.

I recently closed on a property where the situation with the HOA became… complicated. Without getting into specifics, it was a reminder that while many HOAs do a fantastic job maintaining communities and protecting property values, not all are created equal.

If you’re buying a home—especially in a condo, townhome, or planned community—it’s important to understand both sides.

The Good: Why HOAs Exist

Let’s start with the positives.

HOAs are designed to:

• Maintain common areas
• Preserve neighborhood appearance
• Help stabilize property values
• Provide amenities (pools, gyms, landscaping, etc.)

In many cases, they do exactly that—and do it well.

The Reality Check: When Things Go Sideways

However, there is a lesser-talked-about side of HOAs.

Some issues that can arise:

• Overly aggressive enforcement of rules
• Lack of transparency in decision-making
• Poor financial management
• Unexpected special assessments
• Conflicts between homeowners and the board

In more extreme cases, homeowners can feel like they have very little control over decisions impacting their own property.

What Most Buyers Don’t Think to Ask

Before buying into an HOA, it’s not just about the monthly fee.

Here are a few smarter questions to ask:

• How is the HOA run, and who is on the board?
• Are there any ongoing disputes or legal issues?
• What do the financial reserves look like?
• Have there been recent fee increases or special assessments?
• How strict is rule enforcement?

Documents Matter More Than You Think

Reviewing HOA documents isn’t just a formality—it’s critical.

Pay attention to:

• CC&Rs (rules and restrictions)
• Bylaws
• Meeting minutes (these often reveal underlying issues)
• Financial statements

This is where red flags tend to show up.

My Advice as an Agent

My job isn’t just to help you find a home—it’s to help you avoid surprises after you move in.

That means:

• Digging deeper into HOA health
• Flagging potential concerns early
• Helping you make a fully informed decision

Because the goal isn’t just to buy a home—it’s to feel good about it long after closing.

Final Thought

Not all HOAs are bad. In fact, many are incredibly well-run and add real value.

But like anything else in real estate, the details matter.

And when it comes to HOAs… what you don’t know can impact your experience as a homeowner.

If you’re considering buying in an HOA—or already own in one and have questions about how it could impact your home’s value or sale—feel free to reach out. I’m always happy to take a look or give you a second opinion before it becomes a bigger issue.

Nancy Bergman

Salt Lake Home Pros | Fathom Realty 

www.saltlakehomepros.com

858-617-9449

#RealEstateTips #HomeBuying #HOA #HomeOwnership #SaltLakeRealEstate #UtahHomes #BuyerTips #SellerTips

 #FathomRealty #LocalRealtor #hoaissues #hoaprosandcons

Friday Finds: Spring is Here + Market Insights You Don’t Want to Miss 🌷

Happy Friday! ☀️

And… Happy First Day of Spring! 🌷 Longer days, warmer weather, and the real estate market starting to bloom — it’s one of my favorite times of year in Salt Lake.

Welcome to this week’s Friday Finds — your quick local + real estate insider update.

Here’s what’s happening right now:

🌸 Spring Has Sprung
The First Day of Spring always brings a fresh wave of energy — and that’s especially true in real estate. More homes are hitting the market, buyers are getting serious, and we typically see one of the most active stretches of the year begin right now.

🔑 3 Must-Do’s for First-Time Home Buyers
If buying is on your radar this year, here are three things to do now:

1. Get pre-approved early — Know your numbers before you fall in love with a home.

2. Focus on the big picture — Location, layout, and long-term value matter more than cosmetic fixes.

3. Have a strategy — The best homes move quickly, so having a plan (and the right agent 😉) makes all the difference.

4.  Check out our featured listings ---> https://www.saltlakehomepros.com/featured/

📅 Best Time To Sell Is Coming Up
National data is pointing to April 12–18 as one of the best weeks to list your home this year. Why? Buyer demand is high, inventory hasn’t fully peaked yet, and sellers often see stronger offers and more activity during this window.
If selling has been on your mind, now is the time to start prepping. Check out what your home is worth at My Home Value

🏪 Fun Real Estate Insight
Here’s a fun one — homes located near Whole Foods Market and Trader Joe's tend to see higher property values over time.
It’s often called the “Whole Foods Effect” — where desirable retail, walkability, and lifestyle amenities help boost home demand (and value). Location really is everything! https://www.realtor.com/news/trends/which-grocery-store-boosts-home-values-more-whole-foods-or-trader-joes/

📊 Salt Lake Market Insight
Locally, we’re seeing buyer activity pick up quickly across the Salt Lake Valley — especially under $750K. Well-priced homes are starting to move faster, and multiple-offer situations are slowly coming back in certain areas.
Inventory is improving, but demand is right there with it — setting the stage for a competitive spring market.

🌆 Cool Thing to Check Out
Celebrate the first weekend of spring with a visit to Red Butte Garden. Even though everything isn’t fully in bloom yet, it’s a beautiful place to walk, soak in the views, and get a preview of what’s coming this season.

If you’re thinking about buying, selling, or just curious what all of this means for you, I’m always here to help — no pressure, just real advice.

Have a great weekend and enjoy the start of spring!

Nancy Bergman

Salt Lake Home Pros | Fathom Realty

www.saltlakehomepros.com

858-617-9449 

FHA Appraisal Red Flags Checklist

What Buyers & Sellers Need to Know

FHA appraisals are a little different from conventional appraisals. The appraiser isn’t just determining value — they’re also checking that the home meets minimum property standards for safety, security, and livability.

Here are the most common issues that can delay or jeopardize an FHA loan.

Health & Safety Concerns

Peeling or chipping paint

• Required to be repaired on homes built before 1978 (lead-based paint risk)

Exposed wiring or electrical hazards

• Missing outlet covers

• Open junction boxes

• Unsafe electrical panels

Non-functioning heating system

• The home must have a permanent, working heat source

Gas leaks or strong gas odors

Broken windows or missing glass

Roof & Exterior Issues

Roof problems

• Less than 2 years of life remaining

• Active leaks

• Missing or damaged shingles

Poor drainage or standing water

• Water pooling near the foundation

Foundation or structural concerns

• Large cracks

• Signs of settling or movement

Damaged siding or exposed wood

Property Access & Safety

No safe access to the property

• Missing handrails on stairs (if required)

• Unsafe or damaged walkways

Bedroom issues

• Bedrooms must have proper egress (a window or door for emergency exit)

Security concerns

• Exterior doors that don’t lock or are damaged

Utilities & Systems

Utilities must be on and functioning

• Water

• Electricity

• Heat

Plumbing problems

• Leaks

• No hot water

• Non-working toilets or fixtures

Attic, Crawl Space & Ventilation

Inadequate ventilation

Evidence of moisture, mold, or pest infestation

Blocked or inaccessible crawl spaces

Additional FHA “Deal Killers”

• Missing appliances if they are built-in and part of the home

• Non-permitted additions that affect safety

• Safety hazards like exposed nails, broken decks, or loose railings

• In-ground pools without proper fencing (depending on local requirements)

Pro Tip (What I Tell My Clients)

Most FHA appraisal issues are fixable — they just need to be addressed before closing. The key is catching them early so they don’t delay the transaction.

If you’re selling and expecting FHA buyers, a quick pre-listing walkthrough with a knowledgeable agent can save time, stress, and renegotiations.

If you’re buying or selling and want to know whether a home will pass FHA standards, I’m happy to take a look and give you honest guidance upfront.

Nancy Bergman
Salt Lake Home Pros - Fathom Realty 

www.saltlakehomepros.com

Your Salt Lake City local resource for smart, smooth real estate decisions.