I’ve been getting questions from real estate agents on the UAD changes that took place on September 1, 2011. In a nutshell, Fannie Mae changed their appraisal forms for loans, so appraisers now have over 60 new specific requirements to fill out the Fannie Mae forms. I know this isn’t life changing stuff, but for those that might care, here are some observations about the Uniform Appraisal Dataset format:
1) Not a Big Deal: Overall the UAD is not that big of a deal in my mind, but I do feel micro managed in how I fill out the Fannie Mae forms.
2) Some Good Stuff: I do like the location, condition and quality of construction ratings and fields. I don’t even mind bathrooms being listed as “2.2” for instance if there are two full bathrooms and two half bathrooms. While codes such as “C3″ or “Q4″ or “A;BsyRd;Res” are confusing to home owners, they make sense for the UAD and I can live with that. Thankfully I do not have to use the UAD format for the private appraisals I do.
3) Some Annoyances: I’m not a fan of the options available for listing the date of sale. Whereas I could previously enter the date of sale as “08/27/2011”, now I can only use “08/2011”. I think being as specific as possible is powerful when analyzing data. Most annoyances for me have really had to do with getting used to the UAD software.
4) More Time: It tends to take a bit longer to fill out the appraisal form, though it’s all about finding a rhythm when change happen. Over these next months most of the extra time spent will hopefully be absorbed. Change is regular in business, right?
5) Increase Uniformity but Not Quality: This format will produce more “uniformity” in how appraisal forms are filled out (for loans only), but it won’t produce a better quality for appraisal reports. Quality is all about proper comparison, proper adjustments and really understanding the market. A form can be filled out perfectly according to UAD standards, but still lack quality.
6) Other non-UAD Business: I continue to pursue other types of appraisal business and I’m grateful for regular appraisals for bankruptcy, estate settlement, pre-listing, tax appeal and divorce. I frequently work with home owners, real estate agents and investors in private situations, and I’m extremely thankful for these avenues of business.
Let me know if you have any questions or insight.
If you have any questions, or real estate appraisal or property tax appeal needs in the Greater Sacramento Region, contact Lundquist Appraisal by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.