My New Blog

Last week I touched on the Fannie/Freddie Mac requirements for all appraisal reports delivered after September 1^st 2011. This blog is going to go into some detail that the Appraiser is going to be required to report on. The data for the comparables is typically gleaned from the Multiple Listing Sheets of the sales. The Appraiser derives the comparable data from the information that the listing Realtor enters, so if the MLS for the comparable is incomplete or vague then the Appraiser either must find the data from another source or not use the comparable all together. Now in a perfect world there are more than enough comparables to choose from, usually right next door to the subject or directly across the street. But in our world this is not the case and imagine you as the Realtor can’t understand why the Appraiser who came out to your pending could not make value when there is a perfectly good comparable on the next block. The answer is either it did not show up in the search or there was not enough information about the sale to use. Now imagine that the situation could get worse and it will. The appraiser will be required to report on the sq. ft. of the basement of the comparables as well as report on what percentage of the basement is finished and Fannie and Freddie have stated that the Appraiser should go so far as to contacting the new owners to ask them these questions if the MLS does not provide the necessary information. I know the various Multiple Listings have not been informed of this change but a nudge from the Realtors may make them aware of the need for this data, remember we need you to inform us about your sales to adjust the subject to the comparable correctly and provide a reliable opinion of market value. I have posted the abbreviations for the new appraisal report on my website, look for the tab for UAD Definitions, thanks and have a great day.

Joe Bannon