In a desktop appraisal, the appraiser relies on the homeowner’s description of the interior. According to Fannie Mae’s 2020 Appraiser Update, what does this reliance require?
Correct Answer
B) Analyzing and disclosing differently than normal
Reliance on homeowners or agents for descriptions of the subject property requires appraisers to analyze and disclose differently than they normally would.
Why This Is the Correct Answer
Option B is correct because Fannie Mae's 2020 Appraiser Update states that reliance on homeowners or agents for descriptions of the subject property requires appraisers to analyze and disclose differently than they normally would. The appraiser must account for the source of the information in the analysis and make clear in the report how the description was obtained.
Why the Other Options Are Wrong
Option A: No change from a traditional appraisal’s analysis
Option A is wrong because relying on a homeowner's description is not 'no change' from a traditional appraisal's analysis. The source states that such reliance requires appraisers to analyze and disclose differently than they normally would.
Option C: A second appraiser to confirm the description
Option C is wrong because the update does not call for a second appraiser to confirm the homeowner's description. The required response is a change in how the appraiser analyzes and discloses, not an added reviewer.
Option D: An exterior-only inspection by the lender
Option D is wrong because an exterior-only inspection by the lender is not what reliance on a homeowner's description requires. The source addresses the appraiser's own analysis and disclosure, not a lender inspection.
Different source, different disclosure
When someone else describes the house, you analyze and disclose differently. The source changes the work.
How to use: Use this when a question asks what relying on a homeowner's or agent's description requires in a desktop appraisal.
Exam Tip
When a question cites a specific publication, pick the answer that matches its stated point. Avoid answers that add extra parties or inspections the source does not mention.
Common Mistakes to Avoid
- -Treating a homeowner's description as equal to the appraiser's own observation
- -Omitting disclosure of who supplied the subject description
- -Believing a second appraiser must confirm the description
Concept Deep Dive
Analysis
This question tests a specific point from Fannie Mae's 2020 Appraiser Update about desktop appraisals. When an appraiser relies on homeowners or agents for the subject description, the analysis and disclosure must change from what the appraiser would normally do. Recognize that third-party descriptions carry different reliability than personal observation.
Background Knowledge
Desktop appraisals are completed without the appraiser visiting the property, so the appraiser relies on sources such as homeowner or agent descriptions, floor plans and public data. Because these sources differ from personal observation, the appraiser adjusts the analysis and discloses the reliance.
Real-World Application
In a desktop assignment, a homeowner reports that the kitchen was fully remodeled last year. The appraiser considers how much weight that unverified description can carry, looks for corroborating information, and states in the report that the interior description came from the homeowner.
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The intended lender’s applicable assignment conditions require an interior inspection. The client asks the appraiser to deliver a desktop appraisal instead, and the inspection condition has not been authorized for modification. What should the appraiser do?
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May an appraiser use data from a prior assignment for a different client?