Subjective Phrasing on Appraisals

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  • #35959

    Good Afternoon,

    I am looking to see if I can get some guidance on FNMA Selling Guide section B4-1.1-04, Unacceptable Appraisal Practices. There are several snippets from a couple appraisals that we were reviewing. There were some wording issues that appear to be subjective phrasing. We would like to see what your opinion of the following phrases would be.

    “The Subject is an Impressive Home”
    “This is a popular newer area”
    “Nice floor plan and room distribution”
    “Attractive basement stairwell railings”
    “Nicely finished basement”
    “Very Nice Condition”
    “Extremely well cared for”
    “Almost like new condition”
    “Located in Popular neighborhood”


    Good afternoon.
    Effective in November 2021, the updated guidance now prevents many of those comments (if not all of them) from being included in the reports. You will want to make sure your appraisers are up to date on those guidelines. It may be a good idea to send your appraisers a link to them or tell them where to find them. If they simply Google “Fannie Mae Selling guide section B4-11-04” they will find what they need. Specifically regarding your question, the 3rd bullet in this section refers to “use of unsupported assumptions, interjections of personal opinion, or perceptions about factors in the valuation process and the use of subjective terminology…” and then it goes on to give some examples. In some cases, the comment may come down to the reader’s interpretation as to whether or not it falls into this category, but often times it is very evident that the comment should be removed. Have a great weekend! Eric Collinsworth

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