Do you have a look like these?

Do you have a look like this? If so, repair it! First of all, it gives a potential buyer the feeling the home has been neglected, not just in the peeling/chipping/flaking paint area, but possibly neglected in other areas of the home the buyer may or may not be able to see! Then there is the FHA appraisal process, and for all properties built prior to 1/1/1978, the FHA appraiser must inspect all interior surfaces for defective paint surfaces, i.e. chipping, peeling, or flaking paint and must be remedied prior to closing.

Always best to get it done prior to putting home on market!

If the paint is cracking/peeling/chipping or flaking on any interior or exterior surface, the affected area must be scraped, sanded and washed so all defective paint is removed. You should not use a blow torch in case the paint is lead based. A ground cloth should also be used and chips should be properly disposed of. The treated surface should then be primed and painted with 2 coats of matching paint and FHA in most case will require this to be done prior to closing.  

FHA will allow escrow for exterior paint issues from November 30 to May 1^st. (Subject to weather and lender requirements)