REAL ESTATE: Appraisal Changes Effective September 1st

 Today is the official day that Appraisers must begin using the new forms, codes and standards required under the new Uniform Appraisal Delivery standards set by FHFA(Federal Housing Finance Agency),  FNMA, Freddie and the GSE’s.   What will this mean for us? Quick view of Changes
  • The quality and condition rating system is new
  • A whole new set of standardized abbreviations
  • Standardized date formatting
  • Appraiser must report separately on kitchens and baths
  • Location and views are never average anymore – each must be defined based on a drop list
  • Listing history (if listed within the past year) must be broken down for each change along the way
  • Days on market must be disclosed for all sales and subject if a purchase
  • Each sale now must be more clearly defines as an arm’s length, REO, Relocation, Short etc.
  • Treatment of bathrooms counts have changed
 In addition, we will need to understand that as Appraiser’s and Lender’s get used to the new codes and requirements that there will be possible delays in Appraiser’s turn-times, along with requests for the information to be correctly noted by Lenders.   As with any change, there is going to be an adjustment period, which we want to make sure everyone understands.  In the end, we will have more uniformity, which may lead to better overall appraisals and some information that agents can use with sellers to help them better understand their property condition in general.