An Appraisal May Not Be Required On Many Primary Residences
1st Security Bank is participating in a new and exciting feature offered by Fannie Mae and Freddie Mac! Each loan will be evaluated to determine if an appraisal is required or if a Property Data Collection (Fannie Mae) or Property Data Report (Freddie Mac) will suffice.
What is the typical cost of a PDC / PDR? It is significantly less! The estimated cost is around $300.00 vs a full appraisal that can run anywhere from $800 to $1500.
What is a PDC / PDR? It is not an appraisal and DOES NOT PROVIDE A VALUE. A trained property data collector, who may be a non-appraiser, an appraiser or an appraiser trainee, collects on-site property data that includes:
- Measuring the subject property to produce a floor plan
- Photographing the subject property
- Identifying property characteristics
- Identifying adverse conditions
- Noting any functional or external obsolescence
Usually, the collector is required to provide the home's interior layout and LIDAR-based equipment is used to simplify these measurements. The camera is placed in the center of each room and rotates to automatically generate a floor plan and the images required for the property inspection report.
This option to use a PDC / PDR is real benefit, especially when a home is in an area where there is a limited number of available appraisers!
If you would like more information, please reach out to your loan officer to discuss or visit the links below.