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Effective SEPTEMBER 1st !! UAD (UNIFORM APPRAISAL DATA SET) HOW IT WILL AFFECT ALL REALTORS!

By Mary Thompson

Real Estate Appraiser with Lanier Appraisal Service CR004373

August 04, 2011 11:06 AM

Pass this along to every Realtor you know. Re-blog this post, whatever you can do to get the word out!

As of September 1, 2011 appraisals will change drastically. We now must complete appraisals in what is defined as UAD or Uniform Appraisal Dataset format. This is a GSE Fannie, Freddie requirement.

What does this mean for you? The new reports will look foreign to you and your clients with all the codes we have to use in the reports, so you will have to be versed on what the codes mean. Instead of the old days where we described a property as being Good in condition or Good in Quality of Construction, we will now be using codes such as Q=3 and C-2, etc. It will be far less user friendly to read and more automated system friendly. Fannie and Freddie want consistency across the board for all appraisals nationwide and the codes are the way they are trying to get this accomplished. They have clearly defined what Fair, Poor, Average, Good, Very Good and Excellent Quality and Condition should entail. No more leeway in how appraisers determine this on their own. Lenders are also gearing up for uniform delivery of their loan packages and the UAD is part of this whole process.

If you GOOGLE UAD or Uniform Appraisal Dataset you should find a wealth of information on this topic. Be prepared and prepare your clients!

What do we as appraisers need from you? One of the big changes is we must know in what YEAR any renovations to the BATHS and KITCHENS were completed. In addition to the comments you already place in FMLS/MLS about renovations, we need the renovation year for the kitchens and baths. If the exact year is unknown then we need a specific range, ie: less than 1year ago, in the past 5 years, in the past 10 years or in the past 15 years.

If we cannot get this information in FMLS/MLS for the SUBJECT we must contact the owner if available or the Realtor and get this information and that takes time! For all the comparable sales and listings that we use in our reports, we of course cannot contact the owner, so we will be contacting you the Realtor unless you have this information in your comments. While we do NOT have to indicate year of renovations for the comparables, we really need this information in order to properly compare them to the SUBJECT. So any listing you have, please include as much detail about renovations as possible!

What else do we need from you? We need photos! Lots of them, more the better. Photos of the renovations and if you can add descriptions under your photos, please include the YEAR the renovations to kitchen and baths were completed or use the range noted above. Also needed is extent of renovation! Was it a REMODEL or just an UPDATE. For appraisal purposes a Remodel means a significant change, Gutting of the bath or kitchen, all new fixtures, flooring, cabinetry, appliances, etc. VS. Updating which brings it to current market appeal and standards without a total REDO! New Paint, Some new fixtures, refacing of cabinets, etc.

We must have this information included in every appraisal report. So if all Realtors add this information in the comments or under your photos, life will be easier for all as the appraisal will be completed SOONER and the deals will closed faster. Win/Win for everyone! Not to mention, the homeowner needs to get full credit for renovations and when they were performed!

I hope this POST is featured as we have to get all Realtors on board with this ASAP! So please pass this along and let me know if you have any questions. In Future Posts I will define in more detail the codes (which will look foreign to everyone for awhile) and what they mean and how they are defined in our reports

Thanks guys!

Mary Thompson

Certified Apprasier

www.lakelanierappraiser.com

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Georgia Perez

Windermere Real Estate / WSI - Seattle, WA

Broker, ABR, CNE, Seattle, WA 206-356-9872

This is great info to know Mary! I'll be prepared now!

Aug 04, 2011 12:14 PM

Richard Glesser

North Country Appraisal Services - Gaylord, MI

Good post, Mary. Realtors have been burdened over the past several years by appraisers calling to verify comp and subject information. I call it a burden because I fully realize that many Realtors have had a real tough go of it during the past 4-5 years while appraisers could keep busy with forclosures and refi's. Now, these new requirements are going to cause even more imposition on Realtors, especially when appraisals are for refi's and there is no pending sale for motivation. I applaud the professional Realtors who recognize this and take the time to make the process work.

Aug 04, 2011 04:06 PM

Lanier Appraisal Service - Flowery Branch, GA

Lake Lanier Appraiser in North Georgia

Richard: As an appraiser I am sure you know that many appraisers lost BIG business after HVCC, so while some were fortunate enough to have Foreclosures and Refi's to appraise, many others have left the business, just like Realtors have, due to loss of business.

If we are dealing with Refinances, then of course, we the appraiser will be getting this information from the owner, but the sales and the listings most times involve a Realtor, so we need this information from them.

If the Realtor adds just a little more information to their comments in the listing, along with a few more photos, it will will save them time and it will not be a further burden. If this information is not provided then it will be a burden as they will get more calls from appraisers trying to track this information down.

As for not being motivated to provide this information on non pending sales of theirs, they are hurting their FELLOW Realtors on the home that we are appraising ( I am sure they appreciate it when Realtors help on information involving THEIR pending sales) Again, we will be tracking them down to get this information so appraisals will be delayed if Realtors are not motivated to call us back. We will be forced to indicate in the report that we do not have this information due to lack of call back from the Realtor or lack of response to our emails to them and the lender may not accept this as a valid excuse for lack of information. Only time will tell. I am sure Realtors don't want us contacting their sellers directly for this information and we really should not be doing this anyway.

If we all act proactively, we can all get through this with the least amount of headaches and hasstle. I too applaud professional Realtors who understand this and make it work for all concerned.

Aug 07, 2011 06:56 AM

It will be interesting to see how it all works out. The preferrable solution, in my eyes, would be similar to the response of many of the MLS systems to the MC form by inserting a form on each listing which would provide the necessary information for appraisers, thus relieving the Realtors of the additional calls. Let's face it, the MLS is intended to shed the best light on properties to sell them, not to provide information for appraisals. I know Paragon and some others have a MC Form format on comp searches that switches the information to useable data for the appraiser. Something like that for the listing information would help with the UAD. Granted, it would take a little more time uploading listings by the listing Realtor; but would save far more time eliminating later phone calls. Again, the more photos and info input would save time later.

Aug 08, 2011 04:14 AM

Jack Hughes

Hughes Appraisal Group Inc. HUD/FHA Approved) - Lehigh Acres, FL

LGBTQ PROUD !!!

Good post, I took a continuuing education course for understanding UAD and it was very helpful. At least to the pont I understand and can complete the reort However, it will be interesting to see how many reports get kicked back by underwriters because they don't understand.

Aug 13, 2011 12:25 AM

Craig Chapman

Call Realty / Access Appraisals - Mesa, AZ

The Value Guy

I see some things in UAD I really don't like. Such as; on the sales grid, where they now require us to put the DOM on the data source line. I didn't know that the days on market were a data source. URAR has a line for DOM, it's labeled date of sale/time I think. I guess we will now have to make comments as to why these items are not where they should be. Leave it to the government to make things confusing. It appears to me if we don't make some extra comments, we could be accused of being non USPAP compliant due to being confusing. And it you want ot put your data sources, both MLS & public records on the data sources line, now there is not enough room to put them where they belong.

I also see other things required for the grid that may in some cases force increased gross adjustments that will put comps over guidlines & require another comment. Like requiring external obsolescence to be on the location line separated from the site line. Typically I have considered many external issues to be site specific as they they may not affect the entire neighborhood. In some cases different site sizes & an external factor tended to offset each other leaving no adj., just a comment as to what was there. Now it appears thes type of offsets will require 2 adj shown that offset, thus forcing the gross to go way up. I have tended to think of the location line for a comp that may by need be from a different neighborhood that may be either infr or supr to the subj neighborhood.

I'm really glad that about 3/4 of my work is not affected by UAD. Maybe I can increase that to 100%.

Aug 24, 2011 07:08 AM

Effective SEPTEMBER 1st !! UAD (UNIFORM APPRAISAL DATA SET) HOW IT WILL AFFECT ALL REALTORS!

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