One week ago: 11/14/2008 Fannie put out an addendum that appraisers will need to include in their appraisals starting April1, 2009 (no kidding).
It will be asking for the number of comparable listings and sales for the past 3 months; 4-6 months back and 7-12 months back; their median days on the market; median list & sale prices and median ratio of sales price to list price. The numbers of standing inventory and the absorption rates - all for 3 groups of time (current to 3 months; 4-6 months and 7-12 months).
The trends from the listed data - either as increasing, stable or declining.
Plus questions of REO activity; sales concessions, financing assistance.
I have just started putting together listing data in cities where I typically appraise - appraisers who try to appraise everywhere will spend mucho time to collect data - that they may not use or leave big sections of the addendum blank or filled with false information. Please real estate agents - don't provide this information to appraisers - if they don't have access or are too lazy to do the work - THEY SHOULD NOT BE APPRAISING YOUR LISTINGS...in my opinion.
Add to that that sometime next year - lenders may not be able to pick their appraiser or communicate with the appraiser - as the ordering and reviewing of the appraisal will be done outside loan production - to insure appraiser independence.
Many appraisers fear they will need to work for appraisal management companies - for reduced fees.
Because lenders might have no say in who the appraiser is, they will not be able to pre-value a property through "Comp Checks" - as they will have no say in who the appraiser will be - and what appraiser would provide services with no hope of compensation.
Beverly A. Bayer, SRA