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Appraisal Changes Coming September 1st

August 30, 2011

From Loan Officer Joy James

Appraisers are gearing up for a big change September 1st – and that change will affect you and your customers.  It’s called the Uniform Appraisal Dataset (UAD).

This new rule requires appraisals to be done in specific ways if the loan is to be sold to Fannie Mae or Freddie Mac.  The goal is to standardize the reports so they are consistent between appraisers and market areas. It requires new software, new coding, and new data to be collected, so the changes may initially slow delivery times as appraisers get familiar with the new requirements.

Key Changes to Appraisals Include:

Standardized descriptions of property: Today, one appraiser might input “brick” for a home’s condition and another may write “average.” Hardly apples to apples. The UAD requires standard descriptions for a property’s condition, quality, view, and location:


  • Condition and quality will be scored on a scale of 1 to 6 (C1-C6 and Q1-Q6) with 1 being the best.
  • Property views/location will use standard codes of A, N, or B – adverse, neutral or beneficial. A further list of codes provides more information, such as Mtn = Mountain or BsyRd = Busy Road.

New information:  Additional data must be included by the appraiser:

  • Number of days on the market for subject property and comparables
  •  Bathroom and kitchen improvements, including type of work and when it was done

Numeric data inputs: Dates, dollar amounts, number of rooms, lot size must be entered in specific ways.

  • For example, appraisers that describe a bath and a half as 1 1/2 must now input it as 1.1… 1 full and 1 half.  Two and a half baths will now be 2.2… two full and two half baths.
  • Lot sizes below one acre must be converted to square feet.

What can real estate professionals do to help?

A key thing is to include necessary information in your property listings to save appraisers from spending time hunting it down themselves.

Our in-house appraisal desk is up to speed on the UAD format and will be working closely with our appraisers to keep the process moving smoothly. If you want to know more, please give us a call today!

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