Updated: The area of the home has been modified to meet current market expectations. These modifications are limited in terms of both scope and cost

An updated area of the home should have an improved look and feel, or functional utility. Changes that constitute updates include refurbishment and/or replacing components to meet existing market expectations. Updates do not include significant alterations to the existing structure.

Remodeled: Significant finish and/or structural changes have been made that increase utility and appeal through complete replacement and/or expansion.

A remodeled area reflects fundamental changes that include multiple alterations. These alterations may include some or all of the following: replacement of a major component (cabinet(s), bathtub, or bathroom tile), relocation of plumbing/gas fixtures/appliances, significant structural alterations (relocating walls, and/or the addition of square footage). This would include a complete gutting and rebuild.

The descriptions above are from FNMA for use by appraisers and other professionals.

Here is an example of an updated bathroom. The main bathroom in a 25 year old home has had the ceiling and all walls repainted. Several items have been replaced including: underlayment & flooring, the vanity cabinet top, toilet, all plumbing fixtures, light fixtures, light switch, outlets & covers, ceiling fan, baseboard molding, towel bar & toilet paper holder. The original tub/shower still had modern appearance and was in good condition. It was polished up an re-caulked. The vanity was a dated color and had minor wear. It was sanded and resurfaced with a modern color.

Here is an example of a remodeled bathroom. The main bathroom in a 25 year old home was completely gutted, re-wired, re-plumbed & re-insulated. Can lights were added in the ceiling, the old wall light fixture box was removed, & the ceiling fan location was moved & rewired to accommodate a lighted fan. An additional outlet was added on the other side of the sink. All drywall was replaced, sanded and painted. A new vanity cabinet, vanity top faucet and plate glass mirror we installed. A new tub/shower kit and toilet were installed. New underlayment & flooring, shower fixtures, light fixtures, light switch, outlets and covers, ceiling fan, baseboard molding, towel bar & toilet paper holder were installed.

Both bathrooms are of similar quality and have been modernized to have greater appeal in their market. But the remodeled one was more thorough and took significantly more money & time to complete.