Fannie Mae just announced key updates to its Selling Guide, which go into effect in February 2025, with changes for appraisers regarding how market trends are analyzed and how comparable sales are selected and adjusted. While many appraisers have been operating under similar guidelines, the new requirements will place an even greater emphasis on data-backed, objective support for opinions of value and adjustments. You can see the full Fannie Mae Selling Guide here.
Key Takeaways for Appraisers:
- Clearer definitions of “Neighborhood” and “Market Area”: Appraisers will need to be more specific and objective when describing these elements.
- 12-month analysis requirement: Appraisers must provide data-backed trends, using sources like MLS, public records, statistical analysis software and/or price indices to support their value conclusions.
- Objective adjustments: Appraisers will be expected to provide transparent, data-driven explanations for adjustments, particularly in fluctuating market conditions.
Conclusion
These updates reflect Fannie Mae’s continued effort to standardize and improve the appraisal process, ensuring that appraisers provide consistent, objective, and accurate property valuations. By following these new guidelines, appraisers will help ensure the reliability of property appraisals and the integrity of the broader real estate market.
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