Fannie Mae and Freddie Mac introduced a new appraisal reporting standard on Nov. 2 that the National Association of Home Builders says advances its long-running effort to make appraisals reflect new construction more fully. NAHB calls the Uniform Appraisal Dataset 3.6 one of the biggest changes to residential appraisal reporting in more than a decade, with implications for builders, lenders and home builders associations nationwide.
An appraisal estimates a home’s market value and plays a key role in securing a mortgage. The old system relied on fixed forms, which often left extra details in written comments. The new report adapts to each property and presents information more consistently, NAHB says, giving appraisers and lenders a clearer picture of the home. It does not guarantee a higher value.
NAHB points to three possible benefits for builders and buyers. The system captures details that were previously missed or reported inconsistently, including energy-efficient and green features. Standardized information should make it easier to compare new homes with similar properties. And clearer information could mean fewer requests for revisions or explanations, reducing corrections and delays.
NAHB says it has worked for years with Fannie Mae, Freddie Mac and other stakeholders on new-home appraisal reporting. Its longstanding calls include expanding appraisal data standards to cover new construction, energy efficiency and green building; improving the quality and availability of new-construction data; and strengthening appraiser education and experience requirements so appraisals properly account for lot values, building costs and newer construction methods. NAHB says it will keep working with the two companies, appraiser organizations and federal agencies.
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