With the modernization of the appraisal process there has been a lot of buzz about the Freddie Mac Property Data Reports. We understand navigating these developments can be confusing, so we’re here to help.
Let’s dive in!
What Is A Property Data Report (PDR)?
A Freddie Mac property data report provides a comprehensive overview of the characteristics, layout, condition, and pertinent details of a single-family home. Trained professionals collect the data on-site and submit it using Freddie Mac’s proprietary dataset.
When combined with an ACE (Automated Collateral Evaluation), these reports empower lenders to originate eligible loans without requiring a traditional appraisal, rendering them a swifter and more convenient option in numerous scenarios.
It’s important to note that while a PDR offers valuable insights, it does not include an appraisal value.
Why Property Data Reports Matter
Property data reports present a significant advantage for lenders and property owners in suitable circumstances. Here are several benefits of PDRs:
Saves time and money for lenders and consumers by eliminating the need for an appraisal, which can be costly and time-consuming. PDRs streamline the financing process, often leading to quicker and more efficient transactions.
Appraisers and evaluators can utilize PDRs to enhance their valuation process. These reports contain extensive data about a specific property, providing valuable insights that contribute to the appraisal or evaluation.
Enhances transparency for all parties involved. By providing a comprehensive overview of a property’s characteristics and condition, PDRs promote transparency and empower informed decision-making. This increased transparency benefits lenders, property owners, and other stakeholders, enabling them to make more strategic financial decisions.
What’s Included In A Property Data Report?
You might be curious about the contents of a property data report. These comprehensive reports offer an overview of both the interior and exterior of the home, along with details on any enhancements and repairs.
Photographs
Photographs play a crucial role in property data reports, offering lenders and other stakeholders a comprehensive overview, particularly for those unable to inspect the property in person. All PDRs feature photographs of the subject property, capturing the following:
- Front view of the property
- Rear view of the property
- Side views of the property
- Street scene
- Interior rooms
Additionally, photographs encompass the interior and exterior of any significant or permanently affixed outbuildings, such as garages or sheds. They also document any physical deterioration, improvements, or amenities like swimming pools, decks, or patios.
Floor Plan
Included in property data reports are detailed drawings and insights regarding the property’s floor plan. These drawings depict the overall property dimensions, as well as the dimensions and placements of all exterior and interior walls. Additionally, they outline obstacles such as doors, windows, and appliances.
Client & Property Information
The report must contain basic information about the subject property and the client. Key details include:
- The client’s name
- The property address
- HOA fees, if applicable
- The number of years the client has owned the property
- Interior Property Details
The majority of the PDR focuses on the property’s interior. The report examines each room individually, noting the materials used and the overall condition of various interior elements, including:
- Flooring
- Walls & ceilings
- Appliances
- Heating and cooling systems
- Extras (fireplaces, porches, etc.)
Exterior Property Details
In addition to the interior, inspectors also assess the exterior of the subject property and any significant or permanently affixed outbuildings. Key areas of focus include:
- Foundation
- Windows
- Roof
- Infestation
- Street (slope, material, etc.)
- Gutters/downspouts
- Garage
Once again, the inspection evaluates the materials used, age, quality, and overall condition of these exterior elements.
Improvements & Repairs
Given that repairs and improvements can significantly impact a property’s value, they are documented in the report. The report scrutinizes:
Code compliance: Are all upgrades up to code and industry standards?
Ongoing construction: Is there a current project underway, and what does it entail?
Energy information: Are there any renewable or energy efficiency upgrades, such as solar panels?
Data Collector Information
Since the reports must be compiled by a certified professional, it’s essential to document details about their qualifications. Required information includes:
- Inspector’s name
- Title & business
- Inspector’s signature
These particulars are vital for the acceptance of the PDR. For further information on property data collector requirements, you can consult the Freddie Mac website.
Learn More About Property Data Reports
Certainly, we’re merely touching the tip of the iceberg here. There’s a wealth of information and nuances to these reports, along with their proper utilization, which we cannot fully delve into in a single post.