Personal Finance and Investing

So if the conditions are going to drop the value, that will be addressed in the appraisal. And if you are selling it and willing to sell to someone who will use an FHA loan, they might not back that loan for some conditions.

Some examples:
Termites. If there is evidence of termites, FHA will require an inspection and treatment. And the owner pays for it.
Water, woodrot; Again, this needs to be addressed before an FHA approval.
Safety features. I know it is minor, but smoke alarms will need to be in every bedroom and a CO2 alarm somewhere in the hallway.

If you are going to refi, the bank will require an appraisal in most cases and you might want to check with a local real estate agent about your conditions and if you can still get a refi. In many cases, the appraisal will be enough since it took the drop in value as part of the worth already.