This needs to be seen by as many Realtors as Possible! Closings MAY be delayed if word does not get out!

Reblogger Hella Mitschke Rothwell
Real Estate Broker/Owner with (808) 226-1095 or (831) 626-4000 CA #01772851 HI #RB-21268

One of the points that Mary Thompson makes is that a listing should have "as many photos as possible" on it. For FUTURE appraisals, this goes counter to Realtors(R) taking photos OFF the MLS in order to protect copyrights and illigal use of these photos in the future. Not by the appraisers, but other agents, of course. JUST A THOUGHT.

Original content by Mary Thompson CR004373

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 this takes time and mayt also delay closings! 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 and photos.  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!

** FOR THOSE OF YOU WHO PROVIDE GREAT DETAIL AND PHOTOS IN YOUR REPORTS, APPRAISER'S AND OF COURSE THE SELLERS THANK YOU!

I hope this POST is featured as we have to get all Realtors on board with this ASAP! So please pass this along to your Brokers too 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 Appraiser

http://www.lakelanierappraiser.com

 

 

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Rainmaker
1,174,852
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Wow, this isn't too scary, is it? Soon we will need to provide builder blueprints to appraisers and or lenders. There comes a point in time when someone needs to use common sense. In real estate, not so much.

Oct 23, 2011 08:40 AM #1
Rainer
55,360
Teresa Tedder
Carolina Realty of Wilkes Inc - Wilkesboro, NC

I will start doing this immediately!  I usually do try and mention the upgrades but now I know to be more specific!  Thanks for the information!

Oct 23, 2011 08:41 AM #2
Rainmaker
309,736
Jenifer Lower
Bozeman Montana Real Estate .net - Bozeman, MT
Team Service Above Expectation

It has already caused me heartburn once.  Not sure how it will affect this closing, but gaurenteed to watch out for it in the future!

Oct 23, 2011 08:48 AM #3
Rainmaker
575,853
Hella Mitschke Rothwell
(808) 226-1095 or (831) 626-4000
Hawaii & California Real Estate Broker

Sheila: Sounds like the appraisers main tool is the MLS. No wonder some have called me for odd type of properties including commercial for some help.

Teresa: That's actually good information for us listing agents to have. I plan to pay more attention to this as well.

Jenifer: Same here. Thanks for sharing.

Oct 23, 2011 09:12 AM #4
Rainmaker
318,622
Rosalinda Morgan
Brookville, NY
"The Rose Lady"

Hella - Certainly more work for the realtors.  Great information.

Oct 30, 2011 10:05 PM #5
Rainmaker
575,853
Hella Mitschke Rothwell
(808) 226-1095 or (831) 626-4000
Hawaii & California Real Estate Broker

Rosalinda: It becomes more involved, doesn't it?

Oct 31, 2011 10:38 AM #6
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Rainmaker
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Hella Mitschke Rothwell

Hawaii & California Real Estate Broker
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