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Update For You On New Appraisal Stuff

By Gary Woltal

Real Estate Agent with Keller Williams Realty 0575737

October 20, 2011 10:45 AM

Clearly in today's world more and more regulations keep popping up.

It seems to be never ending with banking, taxes, law. Now effective from Sept. 1, 2011, more detail has invaded the residential appraisal world.

Some new appraisal guidelines just in case this area slipped past you. How do we keep up with it all? Hey reading blogs is a start, ha ha:

Fannie Mae and Freddie Mac have implemented UMDP (Uniform Mortgage Data Program), FHA probably around January 1, 2012, no word yet on VA
Dec. 1, 2011 electronically deliver fully UAD-compliant appraisals and expanded loan delifery data to FannieMae and FreddieMac through a new portal
March 19, 2012 lenders deliver appraisals and loan delivery data in an industry standard called ULDD
New info includes Days On Market (total) over days house on market, Offering Price (history and changes)
Sale type reported, pick first that fits on list, REO, Short sale, Court ordered sale, Estate sale, Relocation sale, Non-arms length sale (a relationship between parties), Arms length sale (no relationship between buyer and seller)
Financial assistance or concessions reported
Site area: Parcels less than one acre use square footage, greater than one acre report acres
11 Location Factors: Residential, Industrial, Commercial, Busy Road, Water Front, Golf Course, Adjacent to Park, Landfill, Public Transportation, Adjacent to Power Lines, Other
Property Style, like Ranch, Colonial, Rambler, Farmhouse, etc.
A view rating is needed: Neutral, Beneficial or Adverse
13 categories of Property View: Water View, Pastoral View, Woods View, Park View, Golf Course View, City Skyline View, Mountain View, Residential View, City Street View, Industrial View, Power Lines, Limited Sight, Other
Condition of Property: Not Updated, Updated, Remodeled
Sale Date of Comps: Good luck with an appraiser not part of an MLS getting that info
Quality of Construction: Q1 to Q6, Q1 being the highest
Access to Basement reported as Walk Out, Walk Up or Interior Only
Management Company now reported: The appraiser is now required to report the name of the Appraisal Management Company assigning the appraiser. This will weed out bad appraisers over time

Bottom line,

Appraisals going forward will take longer to complete, COST MORE inevitably even in a down economy with competition in the profession and will require more REALTOR input to get information to complete them.

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Michael Setunsky

Woodbridge, VA

Your Commercial Real Estate Link to Northern VA

Gary, hopefully when these new rules are implemented they will be for the better. Appraisers have a tough job.

Oct 22, 2011 01:42 AM

Scott Godzyk

Godzyk Real Estate Services - Manchester, NH

One of the Manchester NH's area Leading Agents

Gary it is great that they will make everything uniform, the problem they have not corrected is fixing the assignment process to keep low bidders and out of town appraisers from completing appraisals and reward those who do a good job

Oct 22, 2011 02:36 AM

Lori Cain

Own Tulsa - Tulsa, OK

Midtown Tulsa Real Estate Top Producer

Things seem to be improving in our neck of the woods regarding appraisers. I haven't had an "out of area" appraiser for a while and appraisers are using the detailed information I leave them. We have to work together!

Oct 22, 2011 03:02 AM

Gary Woltal

Keller Williams Realty - Flower Mound, TX

Assoc. Broker Realtor SFR Dallas Ft. Worth

Thanks for all the feedback in the comments with these new Appraisal rules particularly the Fannie Mae web sites. Hopefully this won't be as painful to the Appraiser community nor their Associate REALTORS as we might suspect.

Oct 22, 2011 09:47 AM

Evelyn Kennedy

Alain Pinel Realtors - Alameda, CA

Alameda, Real Estate, Alameda, CA

Gary:

I think Donne did a blog about the about the new appraiser guidelines. It seems there is always something to make a transaction more difficult. Another challenge for us.

Oct 22, 2011 02:07 PM

Karen Steed

Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA

Associate Broker Haralson Realty

Congrats on teh one million mark. Incredible.

The appraiser updates are disturbing. Higher prices? What are regulators thinking? We just had a buyer pay $450 for an appraisal, and later in the week the person doing the drive-by called the ofice to check on updates to the property. The drive by fee was probably somewhere between $50 - $75. Who is making all the money on appraisals?

Oct 23, 2011 03:12 AM

Kate Akerly

Kaminsky Group - Manhattan Beach, CA

Manhattan Beach Residential Sales

I've heard about a few of these, but not everything. Thanks for all the information.

Oct 23, 2011 05:34 AM

Jeff Dowler, CRS

eXp Realty of California, Inc. - Carlsbad, CA

The Southern California Relocation Dude

Gary

Congratulations on your new status and this feature.

I knew there were changes but not the details. This is a big help, but it sure seems to make things much more difficult and time consuming...something we will need to factor into our thinking on offers and the due diligence period. I wonder who thinks up all this stuff and the the rational behind it?!

Jeff

Oct 23, 2011 05:56 AM

Jirius Isaac

Isaac Real Estate &TriStar Mortgage - Kenmore, WA

Real Estate & loans in Kenmore, WA

So, it is bad enough that appraisers are maing less money while consumers are paying more so that third parties can make a killing, now they even have more work to do! This is going to make appraisals even more accurate?? LOL

Oct 23, 2011 06:05 AM

Tamara Perlman

Referral Network Inc. - Truckee, CA

Thanks Gary! More and more regulation making life more and more challenging for appraisers, agents, buyers and sellers..... Add a few more days to contingency periods and closing dates!

Oct 23, 2011 06:33 AM

Kimo Jarrett

Cyber Properties - Huntington Beach, CA

Pro Lifestyle Solutions

Hopefully these new regulations will make the AVM extinct. So, it requires a little more time to justify valuations; better than less information and an inaccurate valuation, isn't it?

Oct 23, 2011 06:40 AM

Judi Monday

RE/MAX Valley Properties - Green Valley, AZ

CRS-Green Valley AZ Expert, Green Valley Arizona R

WOW...I had no idea and do appreciate you taking the time to share this information with us. It will be interesting to see how all this additonal work will impact the outcome. My hope is that it will be for the better...

Oct 23, 2011 08:49 AM

Ann Cordes

Century 21 Randall Morris and Associates, Waco - Waco, TX

Home Ownership is Not a Distant Dream

Great information Gary. And congrats on your Active Rain points milestone.

Oct 23, 2011 10:24 AM

Gene Riemenschneider

Home Point Real Estate - Brentwood, CA

Turning Houses into Homes

"require more Realtor input" and yet they will not talk to us. We'll see how this pans out.

Oct 23, 2011 11:22 AM

Monica Hill

RE/Max Associates - Wilmington, DE

the REALTOR to help you discover Delaware

Thanks for the information, Gary.

In our area, we're asking for this topic to be included in Continuing Education. Better to get everyone informed and to encourage cooperation between REALTORS and Appraisers. Whenever an Appraiser contacts me for information, I try to be very prompt in my communication with them and am told, time and again, how many REALTORS do not return their phone calls. This is usually in reference to one of my past sales that they're using for a valuation.

Oct 23, 2011 12:59 PM

Bob Miller

Keller Williams Cornerstone Realty - Ocala, FL

The Ocala Dream Team

Hi Gary. Wow great post. Thanks for all the updated info. Keep it up!

Oct 23, 2011 10:40 PM

Dora Griffin

D A Griffin Financial.LLC - Fort Thomas, KY

NMLS 6380

Appraisal changes would not be such a big deal if not for the fact so many are ordered through third party AMC (appraisal management companies). Even if an appraisal took longer, had more detail, etc. it is all well and good except that the cost for that will be passed to the consumer. The only solution is to eliminate third party AMC's. The appraiser gets a living wage for the work he does. The borrower gets a quality product and just as important all parties get good service.

Appraisal delivery is a huge part of loans taking up to two months to close.

Oct 24, 2011 09:02 AM

Antonio M. Cardenas Broker Associate

RE eBroker Group - San Leandro, CA. - San Leandro, CA

"The Realtors In Motion"

Thank you Gary, we just simply have to pitch in and give a hand to the appraiser. If we want them to help us out, we must take the call, specially when they are not working on one of our deals. It is not their fault, and it takes a couple of minutes to provide the information they need, specially now that we know what they have to do to get us the appraisal... thanks to Gary's post here!

Antonio

Oct 24, 2011 12:34 PM

Patricia Beck

RE/MAX Properties, Inc., ABR, GRI, SRES - Colorado Springs, CO

Colorado Springs Realty

Thank you for highlighting the upcoming changes. Appraisals are expensive as it is and I would hate to see them go up further since many lenders collect the appraisal fee from buyers up front.

Oct 30, 2011 06:19 PM

Sylvie Stuart

Realty One Group Mountain Desert 928-600-2765 - Flagstaff, AZ

Home Buying, Home Selling and Investment - Flagsta

It's important to keep the word out and educating people on the changes, thanks for this educational post. I was aware of some but not all of these.

Mar 11, 2012 11:18 PM