Several weeks ago Fannie Mae announced new photograph requirements and at that time, I sent an email letting everyone on our panel know of the new, soon to be implemented protocol. Well, yesterday was the day. As of September 1, 2010 all reports completed and sold to Fannie Mae are required to have the following photographs:

1. The kitchen

2. All bathrooms

3. The main living area

4. Examples of physical deterioration

5. Examples of recent updates

Identifying and photographing the kitchen, all bathrooms and the main living area is pretty self explanatory. I think even the most inexperienced appraiser can't mess that one up. If you can't identify these areas, you might want to dedicate your time and efforts toward another profession.

However, examples of physical deterioration and recent updates can be a little tricky. We all know from our basic appraisal principles and procedures class that all structures and building components are subject to wear and tear from day one. In essence, everything is in the process of deteriorating. While regular maintenance can slow this process down, neglect and improper maintenance can accelerate it.

For the appraiser, the question becomes "what qualifies as physical deterioration and what updates are significant enough to be photographed and included in the report?" Does a new mail box installed at the street qualify as a recent update? Does a broken or cracked switch or outlet cover qualify as physical depreciation? How are you going to determine what is worthy of a photo and what is considered common maintenance?

In my opinion, it all comes down to value. What are you adjusting for in your reports? If you're making a negative condition adjustment, you might want to take a photo of the items or items that warrant this adjustment. Again, if you're making positive adjustments for upgrades or condition, you had better provide supporting photos.

At the end of the day, it's not that difficult. A little common sense will go a long way. If you feel it makes a significant difference, snap a photo and put it in the report. ??