Stage two, revisited

How appraisers should check data pulled from MLS and public records

Check every field that drives an adjustment: living area, room counts, basement finish, site size, sale price, sale date and concessions. Import tools fill a comparable grid in seconds. Each value they place becomes the appraiser's statement once the report is signed.

Why can't imported data go straight into the report?

Because the report states the appraiser's findings, not the database's.

Fannie Mae's list of unacceptable appraisal practices includes misrepresenting the physical characteristics of the subject, the improvements or the comparable sales. It makes no exception for a figure that arrived through a feed.

The two main sources are built for other jobs. Listing agents write MLS entries to market a home. Assessor records exist for taxation and can trail behind additions, conversions and demolitions. Both are good places to start. Neither is a measurement.

Which fields need the closest look?

The fields that drive adjustments: living area, room counts, basement finish, site size, sale price, sale date and concessions.

Living area. Fannie Mae requires the ANSI Z765-2021 standard when measuring and reporting above and below grade area, and says output from sketching or 3D scanning software must conform to it. MLS and assessor figures may follow a different method or state none.
Consistency between reports. Fannie Mae states that when the same transaction is used as a comparable in multiple reports, its room count and square footage must not change. An office that reuses comparables should keep a shared record of what it reported last time.
Price and concessions. A closed price in the MLS may not show seller credits or items included in the sale. Those details move adjustments.
Condition and quality. Listing remarks describe a home at its best. The ratings belong to the appraiser, and UAD 3.6 adds separate interior and exterior ratings where the two differ.

What counts as verifying a sale?

Verifying a sale means confirming it through a source with no stake in the outcome, and recording which source that was.

Fannie Mae lists as unacceptable the use of data, particularly comparable sales data, supplied by parties with a financial interest in the sale or financing of the subject, unless the appraiser verifies it from a disinterested source.

New construction shows how specific this can get. Fannie Mae accepts verifying a builder sale by viewing the settlement statement, and requires the report to say that the settlement statement was the document used. Whatever the source, name it.

How can software make the checking faster?

Software speeds up checking when it shows disagreements between sources instead of silently picking one.

Show MLS and assessor values side by side, with differences highlighted.
Flag gaps larger than a tolerance the office sets for area, site size or year built.
Keep the imported value and the reported value as separate fields, so the workfile shows what changed and why.
Store how each comparable was reported before, and warn when a new report differs.
Include a field for the verification source of each sale.

None of these tools decides anything. They put the decision in front of the appraiser. The page on responsibility covers the USPAP side.

Questions

Common questions

Is the assessor's square footage good enough for a comparable?

It can be a starting point. When it conflicts with the MLS, plans or other records, the appraiser decides which figure is credible and should be able to explain why.

Does the appraiser have to inspect comparables?

When the scope of work requires it, yes. Fannie Mae lists failing to personally inspect the exterior of a comparable, when the scope of work calls for it, as an unacceptable practice.

Should the workfile keep the raw import?

It is a good habit. A copy of what the source said, next to what the report states, shows where each figure came from.