New Appraisal Standards

September 15, 2011 by · Leave a Comment 



Effective 9-1-2011

If you have been in the real estate industry over the last few years the one constants in our business is change.  Below are the current appraisal changes that are now in effect. 


Will they make deals easier or harder to close? 

Probably both, but either way you should be aware of these changes and how it effects your business.

The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to develop the Uniform Appraisal Dataset (UAD). The UAD will:

(1) define what fields are required for an appraisal submission and 

(2) standardize both responses and definitions for certain fields.

What do this mean to you?

Here are just a few of the items impacted by the new appraisal standards:

**Days on the Market: Days on market is now defined as the total number of continuous days. If a property is taken off the market and then relisted,   the appraiser will have to count all of the days it has been listed.

**Offering Price: The original offering price and history of all price changes must be reported.

**Property Style: Appraisers must use appropriate architectural design indicators such as "Colonial," "Farmhouse," etc. Descriptions such as 1 story, 2 stories, etc are no longer acceptable.


**Quality of Construction: The appraiser must rate the quality of construction of the subject property and all comps using a list of 6 predefined quality levels.

**Location will no longer be simply "suburban" "rural" or "Urban".   The new reporting must give a location (overall) rating of "N"eutral,  "B"eneficial or "A"dverse plus a location factor such as Res for residential  — indicating the location is Beneficial and located on a Golfcourse or perhaps,    

A; BsyRd for adverse location on a busy road

**Condtion will no longer be just "average".   It will be a rating of C1 through C6.   C1 will indicate New, never occupied and C6 will indicate severe deficiencies or defects in structural integrity.   Our typical "average" home will likely carry a C4 rating and anything lower will indicate possible repair issues.

To read FAQs about the UAD appraisal standards, visit


About Mike

Mid Florida Investment Properties, LLC owner Mike Calvert has been buying and selling real estate in Central Florida for over 18 years. Get a seasoned investor as your partner for a fraction of the profit. We handle the transaction from start to finish!

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