New Appraisal Standards

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, visithttps://www.efanniemae.com/sf/lqi/umdp/pdf/uadfaqs.pdf.