I just received a request for a "revision" on an appraisal completed in April. The lender is requesting the site size be changed to a 5 acre tract based on a new lot split , they have attached the new plat map and survey. Originally the parcel was 40 acres. When I recieved the revision request, my first response was that this would be considered a "new" assignment, although after reading the FHA 2011 summer newsletter(see below) I am confused. Can some one explain the proper way to handle this? In cases where the land supporting a single family home is significantly larger in size than the supporting land area for a typical and readily marketable single family property, FHA instructs the appraiser to place no value on the excess or surplus land by assuming the size of the land supporting the improvements is in keeping with the average of the subject marketplace. For example, if the subject property is composed of a 15 acre parcel of land supporting a single family home and the subject marketplace is characterized by sales of single family properties situated on 2 to 3 acre parcels, the appraiser must hypothetically condition the appraisal on the assumption that the subject property is composed of 2 to 3 acres of land, thereby giving no value to the excess or surplus land. The appraiser must, however, describe and note theactual area of the land supporting the subject improvements within the appraisal report.