All good, right?
Well, be prepared. Fannie Mae & Freddie Mac are bringing to the table (January 26th) what they call Collateral Underwriter. It's an okay concept, but it will likely make the appraisal process more costly and lengthier.
A computer program will generate up to 20 comps. They will be categorized by risk factors. The appraiser will be questioned about their comps used. The ones with the least risk factors will be preferred over the higher factored ones. HOWEVER, the lower ones may be in a completely different neighborhood.
Here in Santa Clarita Valley, we use tracks to find our comparable sales. We sometimes go outside the immediate track and look for others that are same age, size, amenities, and such.
In San Fernando Vally, Los Angeles, etc., we use Thomas Guide map numbers, neighborhoods, boundaries, age, size, amenities, etc. It's an older community that originally were tracks for sure!
At any rate, there is suggestion that we will be running into some appraisal value issues due to this new guideline.
Just truly a beware. Buyers and Sellers alike. It will affect both sides. Costs, time, lower values.
Just a little wrench thrown into the mix!