The definition of a complex appraisal assignment is found in Section 225.62(e), Subpart G, Part 225, Subchapter A, Chapter 11, Title 12 of the Code of Federal Regulations, which states:
"Complex 1-to-4 family residential property appraisal means one in which that property to be appraised, the form of ownership, or market conditions are atypical."
Some examples of appraisal assignments that would be considered complex include:
A 1-4 unit residential property located on a commercially zoned site. The assignment is complex because the determination of highest and best use must include an analysis of the alternative potential uses for the site, including those uses that would be allowed under the commercial zoning designation.
A 1-4 unit residential property when the ownership encompasses less than a fee simple interest, such as a leased fee or a leasehold interest. The assignment is complex because it involves the valuation of partial ownership interests (leased fee and leasehold).
A 1-4 unit residential property located on rural acreage, where the highest and best use is agricultural in nature, not residential. The assignment is complex because a determination of the value of the agricultural use is required.
A single-family residence of 3,000 square feet (recently remodeled and expanded) located in a market area comprised of single-family residences constructed in the 1970's and ranging from 1,600 to 2,000 square feet. The assignment is complex because the 3,000 square foot recently remodeled and expanded residence is not typical within the subject market area.
A single-family residence in a custom home market, where the quality of materials utilized and amenities differ significantly between residences. The assignment is complex because it will involve detailed identification of the quality of materials utilized in constructing the subject property improvements, the ability to quantify value influences for differences in the quality of materials utilized in the subject property improvements as compared to the comparable sale property improvements, and an analysis of higher cost amenities and determination of their contribution to value.
