Selling Guide

Published June 3, 2020

The Selling Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Selling Guide in PDF format.

View All Selling Policy Updates

Download PDF

Hint: Ask in a form of a question.

For best results, pose your search like a question.

B4-1.3-11, Valuation Analysis and Reconciliation (04/15/2014)

Introduction

This topic contains information on reviewing the valuation analysis and final reconciliation, including:

 

Overview

The valuation sections of Fannie Mae’s appraisal report forms enable an appraiser to develop and report, in a concise format, an adequately supported opinion of market value based on the cost, sales comparison, and income approaches to value, as applicable. If the appraiser believes that additional information needs to be provided because of the uniqueness of the property or some other condition, he or she should provide additional supporting data in an addendum to the appraisal report form.

 

Reconciliation

In the Reconciliation section of the appraisal report form, the appraiser considers the reliability and applicability of each of the approaches to value that was utilized in the appraisal report. After consideration of each of the approaches to value, the appraiser will provide his or her final value opinion. In the Reconciliation section, appraisers must

  • reconcile the reasonableness and reliability of each applicable approach to value,

  • reconcile the reasonableness and validity of the indicated values,

  • reconcile the reasonableness of available data, and

  • select and report the approach or approaches that were given the most weight.

The reconciliation is based on the appraiser’s judgment of the results developed as part of the valuation process and must never be an averaging technique with the exception of the use of a weighted average technique that includes proper explanation. The final reconciled indicated value must be within the range of the values indicated by the Approaches used in the appraisal report form.

Have You Tried Ask Poli?

Poli knows. Just ask.

Ask Poli features exclusive Q&As and
more—plus official Selling & Servicing
Guide
content.

Try Ask Poli

Related Articles

B4-1.3-01, Review of the Appraisal Report (10/31/2017)

IntroductionThis topic contains information on reviewing the appraisal report, including: Overview  Appraisal Report Analysis  ...

Read more

B4-1.3-02, Subject and Contract Sections of the Appraisal Report (04/15/2014)

IntroductionThis topic contains information on reviewing the Subject and Contract sections of the appraisal report form, including: Subject Section ...

Read more

B4-1.3-03, Neighborhood Section of the Appraisal Report (06/03/2020)

IntroductionThis topic contains information on reviewing the Neighborhood section of the appraisal report form, including: Overview  Neighborhood...

Read more

Have guide questions? Get answers to all of your policy questions, straight from the source.

Get Started
X
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.
     

Email Us
If you still have Technical Support questions, feel free to emailAsk_Poli@fanniemae.com.