Exterior Only Appraisals & Temporary Flexibilities
This week, the National Association of Appraisers (NAA) sent an email with some feedback from Danny Wiley of Freddie Mac. In his post he talks about Exterior Only appraisals and the newly-extended temporary flexibilities.
With the recent announcement by FHFA that the GSEs are extending appraisal flexibilities through June 30th, we’d like to amplify information from Danny Wiley of Freddie Mac. Earlier this week, Danny posted a crucial comment on social media to help appraisers understand the details of the new appraisal flexibilities.
As we are examining the appraisal reports that are being submitted under the COVID-19 flexibilities, the number one issue we are seeing is related to exterior only appraisals and the analysis/reporting of the interior condition.
For GSE work, it is NOT acceptable to simply assume that the interior condition is “average.” Nor is it acceptable to assume that the interior condition is similar to the exterior condition. Many non-GSE users do allow (and even instruct that) appraisals completed with such assumptions, but these assumptions are not acceptable for GSE work.
The appraiser MUST have a data source for the interior condition. The data sources could include any of the types of sources normally used for comparables. Or, under the revised COVID-19 certs, the data could include information provided by the owner, occupant, agent, etc.
If one cannot obtain a data source for the interior condition, then the appraisal should not be completed. However, the intent of adopting the revised certifications and allowing use of data by the property owner was to minimize the number of cases where the appraiser could not obtain such data.
As you can see, the GSEs still expect valid information for the interior of the property, including a valid source for the information.
One of the best sources of interior subject property information is the MLS. With DataMaster, you can connect directly with your MLS’s back-end database, including hundreds of data fields per property and MLS photos. If the subject property is listed in the MLS (or was recently listed), DataMaster can access it. DataMaster allows you to easily view and include MLS photos as a data source to make specific decisions about the interior condition.
DataMaster is committed to providing you with the most complete data to produce credible, defensible appraisal reports. You get the tools you need to create high quality reports quickly and accurately.
As part of the process, DataMaster saves your data into your digital workfile. You can access your report information at the click of a button. And you’ll have a complete record of your decision-making process. DataMaster’s patented processes save you time and help you spend more time analyzing information, instead of moving data. In fact, DataMaster moves about 95% of the data you need for your appraisal assignments.
Access to MLS information is one way DataMaster supports you as an appraiser. DataMaster gives you the right data at the right time to make the right decisions.