Introduction
The Uniform Appraisal Dataset (UAD) Aggregate Statistics are the first comprehensive publicly available data on appraisals. The data from the first quarter of 2023, released in June 2023, provide new statistics and new property characteristics for the first time since the data were initially published. There are five new statistics on comparable properties (comps) and four new property characteristics for the subject property that provide users with novel information to gain even deeper insights into appraisals. This blog provides a description of the new comparable property statistics and property characteristics.1
New Comparable Property Statistics
The UAD Aggregate Statistics now include statistics on comparable properties. Fannie Mae and Freddie Mac require the use of the sales comparison approach in the development of an appraisal report. The sales comparison approach to value is an analysis of comparable sales, contract sales, and listings of properties that are the most comparable to the subject property. 2,3 The appraiser is responsible for selecting the most similar sales compared to the subject property and must account for all factors that affect value when completing the analysis. Table 1 provides a summary of each of the new statistics on comparable properties.
Table 1: Comparable Property Statistics in the UAD Aggregate Statistics
| Comparable Property Statistic | New Information for User |
|---|---|
| Mean Distance to Comparable Properties | This statistic is the average distance from the subject property to that of the appraiser-selected comparable properties. This statistic is measured in miles. For instance, if a subject property has four comparable properties, and the distance to those comparable properties was 1, 2, 3, and 4 miles, respectively, then this statistic would be 2.5 miles for the subject property. |
| Mean Percent of Comparable Properties in Same Census Tract | This statistic is the mean percentage of comparable properties in the same Census tract as the subject property. This statistic is measured as a percent. For instance, if a subject property had four comparable properties, and two of the comparable properties were in the same Census tract as the subject property, then this statistic would be 50%. Census tracts are small areas containing approximately 1,500 households on average. |
| Mean Comps Range Percentage | This statistic measures where the appraised value of the subject property falls within the range of adjusted sales prices/and or list prices of comparable properties. This statistic is measured as a percent. For instance, if the appraised value of the subject property is $250,000, and the adjusted values of the comparable properties range from $200,000 to $300,000, then the value of this statistic would be 50%. |
| Mean Comps Range Percentage (settled sales only) | This statistic is the same as “mean comps range percentage,” but the range of comparable property values is based only on recently sold comparable properties. The range does not include comparable properties that are currently “for sale” or “under contract.” |
| Mean Comps Adjustment Percentage | This statistic measures how much each comparable sales price or list price was adjusted to align the features of the comparable properties with the subject property. This statistic is expressed as a percent, averaged across all of the comparable properties. For example, assume an appraisal includes four comparable properties, each having recently sold or having a current listing price. Further assume the appraiser adjusted the sales price or list price of each comparable property to align the features of the comparable property with the subject property, as follows: Comp 1: Sales price adjusted from $250,000 to $265,000, or +6% Comp 2: Sales price adjusted from $275,000 to $286,000, or +4% Comp 3: Sales price adjusted from $290,000 to $295,800, or +2% Comp 4: Sales price adjusted from $260,000 to 252,200, or -3%. Across the four comparable properties, the mean adjustment percentage was +2.25%. |
New Property Characteristics
The UAD Aggregate Statistics now include four new property characteristics. These new measures provide additional information on the different land and structural features of the subject property as well as a variable to describe the neighborhood demographics. Table 1 provides a summary of each of the property characteristics.
Table 2: New UAD Aggregate Statistics Property Characteristics
| Property Characteristic | New Information for User |
|---|---|
| Lot Size | The lot size is the acreage of land for the subject property. This property characteristic may be useful when exploring correlations between property acreage and appraisal values, and how that relationship changes over time and across geographies. |
| Presence of Accessory Dwelling Unit (ADU) | An ADU is typically an additional living area independent of the primary dwelling that may have been added to, created within, or detached from a primary one-unit dwelling. ADUs are generally governed by zoning or other state/local policy.4 Monitoring trends in ADUs could be important as ADUs may have a role in supporting affordable housing needs. |
| Property Condition Rating | The property condition rating describes the overall condition of the subject property and each comparable property as of the effective date of the appraisal. The rating is on a scale from 1 (best) to 6 (worst). Appraisers determine a property condition rating for the subject and the comparable properties. Property condition ratings may impact the appraised value. Mortgages on properties with certain condition ratings are not eligible for sale to Fannie Mae or Freddie Mac. Due to privacy and disclosure concerns, the property condition categories are combined. The UAD Aggregate Statistics contain two different approaches to combining property condition categories. Additional information is available in the Data File Overview documentation. |
| Tract Largest Race and Ethnicity Group | This characteristic indicates the largest (by population) race or ethnicity group in the Census tract where the subject property is located. This permits users to explore potential trends in disparities in home valuation across racial/ethnic neighborhood compositions. |
Summary
The June 2023 release of the UAD Aggregate Statistics includes new statistics and new property characteristics. In this blog, we describe the new comparable property statistics and property characteristics. These new measures are key in providing a more complete picture of appraisal trends and dynamics, and users may explore them further in the Data File and Dashboards. FHFA continues to promote public transparency through the release of these new measures as well as the routine quarterly updates of the UAD Aggregate Statistics.
1 Full documentation on all variables (including complete definitions and categorizations) in the UAD Aggregate Statistics is found on the FHFA website at www.fhfa.gov/uniform-appraisal-dataset-aggregate-statistics.
2 https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B4-Underwriting-Property/Chapter-B4-1-Appraisal-Requirements/Section-B4-1-3-Appraisal-Report-Assessment/1032992461/B4-1-3-07-Sales-Comparison-Approach-Section-of-the-Appraisal-Report-04-15-2014.htm
3 https://guide.freddiemac.com/app/guide/section/5605.6
4 ADUs are present in a small number of appraisal records in the UAD Statistics. Users should review FHFA documentation on the ADU variable at www.fhfa.gov/uniform-appraisal-dataset-aggregate-statistics.
Tagged: FHFA Stats Blog; Aggregate Statistics; Appraisals; Data; Data Dashboards; Open Data; Source: FHFA
By: Rashida Dorsey-Johnson
Branch Chief, Statistical Products
Office of the Chief Data Officer
Division of Research and Statistics