Preparing for Changes in the Appraisal Process

So a

couple of things I had heard rumored.

I don't know that, you know, the condition statement you mentioned C1 through C5 or whatever.

But are there room by room grades like some things about you've got to break down room by room, the quality and condition of the property? Is that?

Absolutely.

So that's a lot more detail there.

I

would compare it to diagramming a paragraph, if you've ever done that before back when you were in school.

It's going to be real detailed.

It's designed to be read by automated systems, not just humans.

So you're going to have stronger compliance and standardization, expanded condition reporting, overall condition and individual components, including a defect table.

That's something that, you know, You see some in rural housing, FHA, but you hadn't seen it in a standard government loan.

I guess that puts some additional burden or an opportunity, I guess, for a listing agent to...

Make sure the appraiser knows, hey, the kitchen was upgraded, all the appliances were upgraded two years ago or whatever to give you some more detail about the condition of the property going in so that that makes it a little bit easier for the appraiser.

What about additional measurements that are going to be required? I had heard that there were a lot more measurements that are going to be necessary on the site visit.

Of course, in our state, we have adopted the ANSI method of measurement.

However, you are correct.

And, for example, they want to know when to height.

We've always done ceiling height and things like that.

But it's going to be...

some major changes.

I like that piece that Beth just said, opportunity for the listing agent, for us to kind of get more of those details.

And then I like the point that you said too, Ed, that communicating with us.

I know a lot of times realtors have been hesitant to communicate with the appraisal, but I think communicating and letting them know and being more detailed in our listing description to make it easier as you're going through looking for those nice details that only a listing agent or a current seller would know.

So I think that communication is a really good aspect of this.