Property Valuation
How we’re modernizing
the process
More innovative, efficient ways to establish a property’s market value
Leading an ever-evolving market, Fannie Mae has an updated range of valuation options that balances traditional appraisals with innovative alternatives, making the process of establishing a property’s market value more efficient and accurate. These options match the risk of the collateral and the loan transaction.
Value acceptance
Data, model, and technology driven
Driven by accurate data and tested models, delivering automatic value certainty with rep and warrant relief. Includes two options: value acceptance and value acceptance + property data collection.
Value determination
Appraisal driven
Driven by appraisals, delivering value certainty with rep and warrant relief from a CU® score of 2.5 or lower. Includes three options: hybrid appraisal, desktop appraisal, and traditional appraisal.
Property data collection (PDC) is a standardized, tested method where vetted and trained collectors report fact-based property data. Value acceptance + property data and hybrid appraisal valuations leverage this method to streamline processes so lenders, appraisers, and agents can close more loans and serve more borrowers.
- Value acceptance
- Value acceptance+ property data
- Hybrid appraisal
- Desktop appraisal
- Traditional appraisal
Value acceptance
Value acceptance
(Value acceptance)
How it works
Uses standardized, secure data and a robust modeling framework or a lender’s estimate to confirm the property sale price is accurate to the value.
What it works for
Lower risk purchases and refinances when there’s a large amount of data available about the property and market.
Value acceptance+ property data
Value acceptance + property data*
(Value acceptance)
How it works
Property data is collected by a trained and vetted third party. Lender reviews data and confirms property eligibility.
What it works for
Subject properties that have some existing market data that needs further evaluation and confirmation from a site visit by a property data collector.
Hybrid appraisal
Hybrid appraisal*
(Value determination)
How it works
Property data is collected by a vetted third party and passed to an appraiser. The appraiser uses the PDC in lieu of a personal site visit to complete the appraisal.
What it works for
Loans that do not qualify for value acceptance or do not have reliable prior observations of the subject property.
Desktop appraisal
Desktop appraisal
(Value determination)
How it works
An appraiser completes the appraisal without physically inspecting the property, using data from various sources like real estate agents, homeowners, MLS, and tax records.
What it works for
Purchase transactions.
Resources
Fact sheet
FAQs
Job aid
Traditional appraisal
Traditional appraisal
(Value determination)
How it works
An appraiser visits the property to collect the property data and then completes the appraisal.
What it works for
Complex property types or situations where data is sparse. This option is always available to lenders and borrowers.
Resources
Job aid
*Powered by property data collection
Access the current fulfillment providers list.
With property data collection, a vetted third party collects data for efficient, effective property valuations. Quality standards are a priority, which is why the PDC process has been rigorously reviewed and standardized before becoming available to lenders. By offering ways for lenders, real estate agents, and appraisers to leverage this data, Fannie Mae is working to advance and streamline the mortgage process for our partners and their customers.
Breaking down the basics
Fiction vs. facts
Fiction
Property data collectors do the same job as appraisers.
Fact
Data collectors and appraisers have two distinct roles. Data collectors perform an objective, fact-based collection and reporting of data and do not provide any opinion on value. Appraisers develop and provide an opinion of value on a property using various sources, such as PDC information, comparable sales, local market conditions, and property amenities.
Fiction
Property data collectors receive no training and have no standards they must adhere to.
Fact
Data collectors undergo training, background checks, and extensive quality control measures. All collectors must follow the standards established by Fannie Mae in the Property Data Collector Independence Requirements.
Fiction
No one is liable for inaccurate information in a property data collection.
Fact
Data collectors must certify that the data factually represents the property characteristics. In a hybrid appraisal, the appraiser is not liable for using any third-party data in their assessment. The lender is responsible for verifying the accuracy of the property description and completeness of the data.
Dive into property data collection
Discover why lenders trust and use PDC.
PDC 101: An essential guide
A detailed breakdown of the who, the what, and the why of PDC.
Independence requirements
Requirements for appraiser and property data collectors that safeguard the collateral valuation process.
Advancing Collateral Valuation: A Data-Driven Approach
Learn how PDC is working to support an evolving real estate landscape.
