The desktop appraisal process has become increasingly important to the real estate appraising industry. As such, it is essential that all appraisers understand how to properly comply with GSE requirements when conducting a desktop appraisal. Exploring GSE requirements for desktop appraisals will cover the various requirements and steps you need to take to ensure compliance.
Definition of a Desktop Appraisal
A desktop appraisal is an appraisal report that is prepared using data from third-party sources without any physical inspection of the subject property. This type of appraisal is typically used for low value properties. For example manufactured homes and small condos, or when an in-person visit would be too costly or difficult to arrange. In order for an appraiser to conduct a desktop appraisal, they must adhere to the guidelines set forth by GSEs (Government Sponsored Enterprises).
The Fannie Mae Selling Guide provides detailed guidance on what is required in order for an appraiser to conduct a successful desktop appraisal. It states that appraisers must include certain components of the property description within their reports. Including square footage, age of the building, exterior construction material, number of bedrooms and bathrooms. Also, quality of finishes and condition of the property’s systems. Additionally, it requires all pertinent sales data be included in order for a valid comparison between the subject property and other similar properties in the area.
In addition to meeting these GSE requirements, it is also important that appraisers take responsibility for their work product by double-checking all data inputted into the report before submitting it for approval. This includes verifying accuracy and completeness of information related to comparable sales. As well as confirming that all photos used are relevant and taken from reliable sources. Furthermore, if there is any evidence that suggests further research or additional information should be collected prior to completing the report, then this should be noted in detail by the appraiser prior to submitting it for review.
It is important that all real estate appraisers remain familiar with GSE requirements when conducting a desktop appraisal. Not only will this help ensure accuracy and reliability within your reports but it will also protect you from potential liability issues if something were to go wrong with your report down the line. By taking these extra steps while gathering data on comparables and verifying accuracy within your reports before submission can help make sure you are providing top-notch service every time! For additional information or guidance, attend this upcoming webinar called Desktop Appraisals and GSE Requirements by Len Fiore, a Certified General Appraiser and National USPAP Instructor, the subject matter will be exploring GSE requirements for desktop appraisals. Various topics will include how to determine the physical characteristics of the subject without an inspection, Fannie Mae and FHA Guidelines, type of reporting and USPAP minimal reporting requirements.