Blog of Greg Bryan for GB and Associates Covering San Francisco Real Estate

New Appraisal Standards Effective 9/1/2011 for Fannie Mae and Freddie Mac

10/31/2011

New appraisal standards went to effect for most loans as of September 1st. Appraisers now have to take into account all the following factors:

All the Days on Market including previous days that a property was listed even if removed from the market
Offering Price as the original offering price despite price reductions
Property Style now has to be classified by architectural design such as Victorian, Colonial, Townhouse, etc
Condition must now be determined by predefined categories
Quality of Construction has to be rated into one of six predefined quality levels

The impact on buyers is that it is going to make it harder to value properties and cause delays in appraisals so you should allow at least two weeks for an appraisal.

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Is Your Building Qualified?

3/26/2011

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The real estate market has been tough enough this year with the banks tightening up their credit guidelines for borrowers, owners not wanting to lower prices to market, and buyer wanting unrealistic foreclosure prices, but now things have gotten even tougher for us professionals. We now have to qualify not only our borrowers but the buildings that they are considering. Some of the potential deal killers for first time buyers seeking FHA, Fannie Mae or Freddie Mac approved bank loans are:

Too many units in a building being rented and not owner occupied
Too many units with delinquent HOA fees
Inadequate HOA reserves
Too many vacant units
Pending Litigation
Deferred maintenance or capital improvements needed
Too high a percentage of the building being used for commercial purposes

If you are looking for a condo in SF or any other city it is a good idea to use a real estate professional who is familiar with the various buildings and can ask the pertinent questions before you get too far in the process. This will save you time and money.

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New Appraisal Standards Effective 9/1/2011 for Fannie Mae and Freddie Mac

Is Your Building Qualified?

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SF Property Values

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