Selling Guide

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.

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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.

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