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Uncategorized

COVID-19 Appraisal Update: Do You Need to Update Your Market Template?

April 30, 2020 by Shauna Hatch Leave a Comment

Breaking News for Appraising During COVID-19!
The latest news on appraising during COVID-19

Trying to keep up with the latest appraisal guidelines during the COVID-19 pandemic? Staying current with the latest news is a full-time job in and of itself! We’re here to help! As the fallout from the pandemic impacts the real estate appraisal world, Jared Preisler, chief appraiser at DataMaster, CE instructor, and busy practicing appraiser has stayed apprised of the latest appraisal news. Here he shares some well-researched insights and helpful resources with you, his fellow appraisers.

“This morning, I felt the need to update my Market template. I have been adding some commentary about COVID-19, but I thought it best to revisit all of my statements and see if they were still relevant.

It seems like every other day, there is a new webinar updating or explaining the COVID-19 appraisal process. I have participated in many of the webinars, but not all.

Fannie “Mae” and Freddie “Mac” expect appraisal reports to clearly and accurately report the current market and the anticipated impact on the subjects’ specific market in the near future. I see more active inventory, more canceled contracts, more withdrawn listings, and more price reductions in most of the markets I work – all indications of a softening market. As I talk to homeowners, there is less confidence in the future. I have not seen the typical spring “bump” we usually get. So how do I separate these impressions and anecdotal conversations from the facts and then report them to my clients?

I know that I am spending more time analyzing each specific market. I am trying to use and rely on the most recent sales (30-45 days) and sticking to my opinions when challenged. So, how will COVID-19 impact the housing market?

Here are some published insights by Jim Wood that I found valuable:

The global spread of COVID-19 has pushed mortgage rates to the lowest level on record-3% or less. Through refinancing or home purchase, these low rates offer an unprecedented opportunity for homeowners and homebuyers to capture sizable long-term savings on their housing costs. The best strategy for current owners is to refinance with a 15-year low-interest rate mortgage. In this case, the mortgage term decreases while taking advantage of exceptionally low rates. The economic uncertainty will very likely dampen housing price increases in the short-term. Slow price increases combined with the record low-interest rates enhance the economic environment and potential savings for the home buyer. Low mortgage rates will cushion the home building industry from the worst impacts of the global spread of COVID-19

‘Potential Housing Impacts’ by Jim Wood, Ivory-Boyer Senior Fellow

Here is a report from the Kem C. Gardner Policy Institute at the University of Utah that gives U.S. economic indicators for the week ending April 26, 2020.

Also, a great web page to bookmark for the latest economic, demographic, and public policy info is https://gardner.utah.edu/covid-19/. This web page shows the economic impact and not the number of confirmed COVID-19 cases.

Another relevant report is the Coronavirus Economic Commentary by Natalie Gochnour, Associate Dean and Director at the Kem C. Gardner Policy Institute at the University of Utah.

This information is for the Utah market, but I am sure that you have similar resources in your geographic area. Feel free to share in the comments section!

Be safe and wash your hands…and don’t touch your face.”

We hope that you find this information informative and helpful!

Happy appraising!

Filed Under: Uncategorized

Flexible Appraising During Covid-19

April 16, 2020 by Shauna Hatch Leave a Comment

Flexibilities in appraising is important during difficult times.
Obstacles require flexibility to overcome.

This article was written by Rick Lifferth, Marty Hamilton, and Shauna Hatch

Appraising and Temporary Flexibilities

As an appraiser, are you confident that you’re conforming to the temporary flexibilities allowed by Fannie Mae? If you’re not confident that your appraisal files are conforming, could you use some help getting your desktop and drive-by appraisals up to par?

Fannie Mae’s temporary loosening of appraisal requirements makes it necessary for appraisers to quickly become familiar with the new “temporary flexibilities” rules. In our previous blog post, “Appraising During COVID-19,” we outlined the “temporary flexibilities” for appraisals authorized by Fannie Mae as well as provided some tips on accurately filling out the 1004MC form.

With the new guidelines, it’s important that you have the right tools. We have the tools that you need, so let’s get to it!

Let’s Get To It!

Let's go!
Go!

Temporary Inspection Flexibilities

The temporary loosening of property inspection requirements by Fannie Mae, Freddie Mac, VA, and HUD will require some work-flow modifications for appraisers. If you have not heard about the Desktop or Drive-by options, click here.

 When an appraiser receives a request for a Desktop or Drive-by appraisal, the first question that comes to mind is, “How much information about the subject property is available for me to use?” Driving by the property is easy but getting the interior data is more difficult. 

Appraisers are getting creative with their approaches. The best option is to interview the occupant and ask them to send you photos. There are several mobile apps which have been introduced recently which will help you with this process. OwnerInsight is an app which appraiser Jared Preisler uses-give it a try! 

DataMaster Property Search

DataMaster’s new Property Search function allows you to find existing properties in the United States.  It allows you to search by 

  • Tax ID (APN)
  • Property Address
  • MLS Number

Whichever of those three options you use, DataMaster will simultaneously search both public records and the MLS with a single push of the button.  

Public Records:  Our public records data provides addresses, legal descriptions, Tax ID (APN) numbers and associated data. We also provide physical characteristics of the property such as Lot Size, Square Footage, Year Built, and other data.

In select counties across the country, we provide property Plat Maps (see below). We also gather historical information about the ownership of the property. All of this data will auto populate directly into the appraisal forms. 

MLS Search:  The MLS search happens simultaneously. If the property has been listed in the past or is currently listed in the MLS, DataMaster will find it. If it is a recent listing or sale, it usually includes photos. Most MLS’s truncate the photos after about a year, but the data is usually still there. For example, my wife and I sold our home in 2012. The data is still in the MLS but the photos are gone.  

Google and Bing maps and street photos: DataMaster provides access to both Google and Bing maps as well as street photos for every property searched (see below).  

Recycle Your Own Appraisal Data with CompTracker

DataMaster provides CompTracker, our long-awaited new feature for appraisers!
Comptracker

Each appraisal you have completed in the past contains a lot of information about the physical characteristics of the subject and comp homes. CompTracker is a new feature that allows you to save that data and recycle it into new reports. With CompTracker you can electronically read your files into the database so that you can reuse it on every appraisal. 

For example, if you did an appraisal on a home four years ago and you are currently using that home as a comp because it recently resold, you can use your previously measured GLA on the home (assuming it has not had an addition added to the back of the home). 

A seasoned appraiser once told me that his personal appraisal files were worth $1 million. My response was, “Great, but the only way you can leverage that data is to open each file and look at each report.”  That is simply not an efficient process! 

Rick's filing cabinets
 
Your previous appraisal data may be stored in file cabinets like these in Rick’s office.

You can load as many previously appraised properties as you want. If you want to go back as far as five years or more, you can.  

CompTracker is part of your digital work file and personal database. And it doesn’t matter which form software you use;, we work with all of them! 

Trusted Peers in the Office

Another helpful feature in CompTracker is the option for you to share selected property info with trusted peers. Both parties must agree in order to use our unique two-way sharing model. 

Another great reason to use CompTracker is that you know who you share with. There is no anonymous data in CompTracker. 

We built CompTracker with USPAP compliance in mind and the data you can share depends on your relationship with your trusted peers. If your trusted peers are in the same office, you can share property data including assignment results. If you work in separate offices, you can only share physical characteristics. 

Deeds

Can you imagine how convenient would it be to see property deeds in your software? Good news! DataMaster provides deeds!

When you select a property (either as a subject or a comparable), DataMaster displays the Listing History from your MLS as well as the deeds from public records. In the Listing History, you can see the Cumulative Days on Market and List Price changes. You can also see the three-year transfer history for the property.  

You can save time with the deeds for each comparable. We’ll give them to you before you get to the sales grid. You can review the deeds and select the current and prior sales or you can skip them and get back to them later. With this option, you can weed out comparables that don’t fit your assignment. For example, there might be a comparable property that has multiple transfers within a year, indicating that it’s a flipped property. Based on this information, you can get rid of that comparable and save the ten minutes you would have spent cleaning it.

Photos

For each comparable property in the sales grid, DataMaster quickly gathers all the MLS photos. We give you the interior and exterior photos to help you make your quality and condition decisions. A bonus, you can select your quality and condition rating within DataMaster! 

Another great thing about having the MLS photos is that they become part of your digital workfile. If your MLS removes the photos from their database, you’ll still have access to the photos in your workfile. You’ll be able to defend your decisions with this back-up, even several years after the report was filed!

Maps

With DataMaster Pro you get the Google Street View and Bing Satellite views for each property. You can review the location and enter it in DataMaster. With the satellite view, you might see something you couldn’t see from ground-level, like a busy cross street, railroad tracks, or power lines.  

Keep in mind that your location and view designations will pass from DataMaster into your form vendor. 

Plat Maps

DataMaster provides Plat Maps as a service to you, the appraiser!
Plat Map

This is not the time to drive to your county records office to get your plat maps (is there ever a convenient time for the extra driving?). DataMaster gives you plats for selected areas. Our plat service can save you the time it takes to find plat maps or even subscriptions to other plat services. With plat maps, DataMaster is your one stop shop for property data. 

Digital Workfiles

One of the many great things for appraisers that DataMaster provides, is the ability for you to select the data you’ll include in your final reports. You can choose a selection of the comparables you reviewed for your reports. If you reviewed ten comparables you don’t have to include them all in your reports, yet all ten comparables will be saved in your DataMaster files.  

You can use DataMaster to show your appraisal work. You can show a reviewer or underwriter that you reviewed a property and that based on your professional opinion, that property didn’t meet the needs of the assignment. 

Graphs

Identify the trends in the market and support your market conditions data with graphs! DataMaster Pro gives you the choice of twenty-eight graphs that illustrate and support your conclusions! These graphs are simple to use and very eye-catching.

Customization

Here’s a great feature that many appraisers love! With DataMaster your forms are customizable! You can customizie site area, view, quality of construction, garage/carport, and many more details in DataMaster! Need help? Call customer support for free help and training at 888.362.9222.

…But Wait, There’s More!

If you’d like a refresher of the lender letter sent out by Fannie Mae, follow this link. Here is the link to a valuable resource, Service Link’s paper, “Reporting Market Conditions in a Residential Appraisal Report,” and the link to a resource for analyzing market trends, The Appraisal Institute’s “Guide Note Ten.”

DataMaster provides you with so many more helpful features! In fact, in May we’ll be launching a new feature, Standard Addendum, that you’ll love! If you’d like to know more, go to datamasterusa.com or call us at 888.362.9222.

Conclusion

Success in appraising comes with the help of DataMaster!
Feel More Confident Appraising With DataMaster!

Feeling more confident in your ability to adapt to the temporary changes due to the impact of COVID-19? As you learn more about DataMaster, you’ll come to realize that this is a tool that smart, successful appraisers use, value, and share with their appraiser friends! You’ll come to realize that this is a tool that will give you more time and help you create defensible files now and in the future!

Happy appraising!

Filed Under: Uncategorized Tagged With: appraising during COVID-19, flexibility in appraising

Appraising During COVID-19

April 6, 2020 by Shauna Hatch Leave a Comment

Overhead view of an appraiser's desktop.
Appraising during Covid-19 means making adjustments!

Introduction

Fannie Mae’s Announcement

Who could have predicted what the first part of 2020 would hold!? These are unexpected times that have taken us all by surprise! Everyone, including appraisers, has made adjustments to their daily life. The appraisal process has become part of those adjustments, although the changes will be temporary.

We realize that as an appraiser you may be worried about the amount and type of information that you need for a credible report. You may be worried about conforming to Fannie Mae’s temporary adjustments and want to ensure that you are protected.

Here at DataMaster, we want to assure you that we are here to help! We have the information to guide you as you complete your appraisals correctly and defensibly!

This post breaks down the temporary appraisal requirements, outlines the 1004MC requirements, and gives you several resources to go to for authoritative, accurate information.

Let’s get started!

Fannie Mae’s Lender Letter

RULES
Temporary Rules For Appraising During COVID-19 Outbreak

In response to the arrival, spread, and impact of COVID-19 in the United States, Fannie Mae has released a Lender Letter addressing “temporary flexibilities” to their appraisal requirements. Effective immediately and expiring on May 17, 2020, this letter outlines instructions on a variety of requirements including:

  • Temporary appraisal requirement flexibilities
  • Desktop appraisals
  • Exterior-only inspection appraisals
  • Revisions to the scope of work, statements of assumptions and limited conditions, and appraiser’s certifications
  • Additional form instructions for appraisals
  • Identification of a Fannie Mae loan
  • Appraisal waivers
  • Delivery requirements
  • Completion reports (Form 1004D)
  • HomeStyle Renovation and HomeStyle Energy requirements

Let’s take a closer, brief look at each bullet point.

Temporary Appraisal Requirement Flexibilities

Alternatives to the traditional appraisal will be accepted until May 17, 2020. Should COVID-19 concerns preclude the execution of an internal inspection, desktop appraisals or an exterior-only inspection appraisal will be allowed in lieu of traditional appraisals.

Desktop Appraisals

In preference to exterior-only appraisals, desktop appraisals are recommend as the prefered choice by Fannie Mae. A desktop appraisal relies on public records, MLS information, and other third-party data sources to identify the property characteristics. The appraisal will be scored by Collateral Underwriter (CU). Here’s a short intro video by Fannie Mae.

Exterior-only Inspection Appraisals

For specific transactions, i.e., purchase money loans and limited cash-out refinances where the loan being refinanced is owned by Fannie Mae, exterior-only inspection appraisals will allowed.

For a list of the forms which are allowed for each property type, please see the detailed instructions here.

Exterior-only inspections require particular exhibits to the appraisal reports, including:

  • a street map of the subject property and comparable sales
  • original photographs of the front of the property
  • any other information that supports the opinion of market value

Revisions to the Scope of Work, Statements of Assumptions and Limited Conditions, and Appraiser’s Certifications

Fannie Mae and Freddie Mac have modified the language of documents included in the statement of assumptions and limiting conditions, scope of work, and certifications.

Follow this link for detailed instructions on the modified instructions for scope of work, statement of assumptions and limiting conditions and certification for desktop appraisals.

Follow this link for detailed instructions on the modified instructions for scope of work, statement of assumptions and limiting conditions and certification for appraisals with exterior-only inspection.

Additional Form Instructions For Appraisals

Exterior-only or desktop appraisals completed on interior and exterior inspection forms, must include the corresponding text identifier that reports the type of appraisal completed (“desktop” or “exterior”) in the “Map Reference” field.

Identification of a Fannie Mae Loan

As mentioned above, for a loan to qualify for these temporary measures, the loan owner must already owe on a loan being serviced by Fannie Mae. To determine whether a loan is a Fannie Mae loan, lenders can find the information in their records or use the Loan Lookup tool.

Appraisal Waivers

Should an appraiser request an appraisal waiver due to concerns over potential exposure to COVID-19, lenders are encouraged by Fannie Mae to accept such requests. Before ordering appraisals, lenders must submit the case to DU (desktop underwriter) to discover the waiver offering.

Delivery Requirements

No changes are being implemented

Completion Reports (Form 1004D)

Due to issues related to COVID-19, if a completion certificate is not available for a loan, with the exception of HomeStyle Renovation and HomeStyle Energy loans, confirmation in a signed letter by the borrower will be sufficient proof of completion. Lenders are required to produce other evidence of completion as well, including paid invoices, occupancy permits, and so forth.

HomeStyle Renovation and HomeStyle Energy Requirements

HomeStyle Renovation or HomeStyle Energy loans are not eligible for the temporary appraisal modifications. If a traditional appraisal with interior and exterior inspections, as well as a 1004D where required, are not possible, then the loan does not qualify for sale to Fannie Mae.

For updates on reporting during this COVID-19 pandemic, check in on Fannie Mae’s update page here!

Completing The 1004MC Correctly

I've Totally Got This file!
You’ve Got This!

If you are looking for instructions on 1004MC forms, or perhaps in need of a brush-up, look no further! We’re sharing a document created by ServiceLink, a Black Knight company. This excellent forty-page document explains in detail what a neighborhood is, how to calculate the absorption ratio, and what needs to be filled out in the 1004MC form.

For a thorough description of how to correctly complete the 1004MC, go to this link. We’re proud to be the only existing software company that ServiceLink refers customers to in this document with the instructions:

Appraisers use a variety of software tools to aid them in compiling the data and performing the calculations necessary to complete the 1004MC form. The most common are: Third party solutions such as SMART (now defunct) and DataMaster, 1004MC “wizards” built into a local MLS service, and Spreadsheets.

Any questions? Give us a call!

Appraisal Institute Guide Note 12: Analyzing Marketing Trends

Happy young man
All of the Help You Need is Here With DataMaster!

Do you have questions about how DataMaster populates the Market Analysis? Go to our website for a detailed explanation.

Another excellent resource is the Appraisal Institute Guide Note 12: Analyzing Marketing Trends. This document emphasizes that the appraiser ultimately determines the scope of work. The document also details factors that cause the change in market then defines the Market Analysis.

Again, if you have any questions, give us a call!

Conclusion

DataMaster

DataMaster is the gold standard of the data management software for appraiser industry. Turn to our support, online videos, and online documentation for directions on properly completing your files during this unprecedented time!

Looking for somewhere to take a break? We’re on Facebook, Twitter, and LinkedIn! We post regularly in an effort to teach, connect, and entertain!

Happy appraising!

Filed Under: Uncategorized

A Message from Rick

March 30, 2020 by Marty Hamilton Leave a Comment

With the uncertainty about the spread of COVID-19, like you, we are concerned about the well-being of our employees, their families, our customers, and the world community. With different sources of news and different perspectives, it can be hard to know who and what you can trust. We want to offer some assurance for you about DataMaster.

We are taking the guidance from federal, state, and local officials seriously and complying with their instructions.

We are taking the following steps to ensure your access to the appraisal data you rely on for your reports.

  • We do not anticipate any disruption in access to DataMaster, MLS data, or public record data. Our data sources all appear to be stable and functioning properly.
  • We have facilitated the ability for most of our employees to be able to telework from home.
  • We will continue to provide customer service during our normal business hours, so you will receive the same level of service you have come to expect.
  • We are attempting to move any continuing education courses online and cancelling in-person visits for the time-being. We will notify you of any changes.
  • We will increase the number of trainings through webinars and online methods.
  • We are rolling out CompTracker now. This amazing tool allows you to find and “recycle” property inspection data for homes you have previously appraised. It merges that data seamlessly with the MLS and public record information for reuse. It also allows you to share physical characteristic in a USPAP compliant way with your selected Peers. It is awesome! Read More
  • DataMaster makes it easy to complete Desktop Appraisals and Exterior Inspection Only Appraisals responsibly and quickly.
  • Look for our enhanced Market Analysis process to be released soon. 
  • Over the next several months, we will be rolling out various other analytical tools.

DataMaster is committed to advancing the appraisal industry.. As the situation unfolds throughout the country, we will continue to monitor and act according to official guidelines. Here are some links to important announcements and guidelines from Fannie Mae. We will continue to make information available to you through email and on our website during these uncertain times.

As an appraiser of many decades, I share all the health and safety concerns associated with the Coronavirus Pandemic, like you do.  Please do what you can to keep yourself and your families safe and healthy.

Sincerely,

Rick Lifferth, SRA MAI
Founder and CEO, DataMaster for Appraisers

Filed Under: Uncategorized

Plat Maps For Appraisers at Your Fingertips

March 12, 2020 by Shauna Hatch Leave a Comment

Plat Map
Plat Maps Made Easy!

As Easy As Possible!

We’re determined to make appraisers’ lives as easy as possible! With access to public record data, back-end MLS data, many amazing features, and helpful customer support, it’s no wonder that we’re the most popular data management software for real estate appraisers in the US!

What’s Next?

READY?
What’s Next?

So what’s next? We’re releasing an exciting lineup of new features this year! These features will save you even more time, make your life even easier, make your files more defensible, and help you make your business successful!

Our latest new feature is rolling out to across the country as we speak!

Drum Roll

Introducing…(Drum Roll Please!)

Introducing…Plat Maps at your fingertips! No more hustling down to the county records office or paying a separate Plat Maps provider and all of the other hassle of digging up a Plat Map for your appraisal file. Inside of DataMaster, simply click on “Plat Map” then click “Get Plat from Public Records”. DataMaster finds the Plat Map for you and downloads it into your form!

Watch this video to see how Plat Maps work in DataMaster.

No More Fences!

Still on the fence? Here are some swell reasons to use DataMaster for your Plat Maps needs:

  • Simplifies your process (Plat Maps come through DataMaster into your form!)
  • Automatically populates your form as a PDF
  • No minimum amount of use
  • No monthly fee
  • Saves you time (no manual searching!)
  • Saves you hassle (just two clicks in DataMaster!)
  • Only $5 a month for unlimited plats

Ready To Try Plat Maps?

Celebrating man
Ready to try Plat Maps through DataMaster!

Ready to get started? Try Plat Maps through DataMaster for free for 30 days, then use Plat Maps for only $1 a plat!

Go to: www.datamasterusa.com/plat-maps/ for more information!

To sign up, call us at 888.362.9222 or email us at sales@datamasterusa.com.

Happy appraising!

Filed Under: Uncategorized

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