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Crazy! Lender wants 'Rural' on a suburban property

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Pamela Crowley (Florida)

Thread Starter
Elite Member
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Lender calls and wants a new appraisal on a property I did last year. It's a small horse farm in the middle of what is now a built up suburban neighborhood. They want me to say it's 'Rural' on the appraisal.

I'm thinking...... looking for feedback.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
:lol: "Just say NO!" :lol:

Ok, more seriously, WHY does the lender want this rural call??
Seems like it is time to ask a lot of questions!

1. There are now some small ruralresidence/farm loan packages that are 'easier to fit' in terms of underwriting than hammering the square small acreage into the round residential hole!
You could stand firm on the neighborhood description, but weasel word something to the effect that the property has 'rural use' if they are trying to do one of these 'small farm loans'... however it seems like 10 acres in a suburban area isn't an outsize parcel which would require a farm loan...
but I would want to carefully consider the results of

2. The Highest and best use analysis, which indicates____?

3. That urban/suburban/rural arguement is a tough one... We tend to call them by linkage: if it takes less time to get to the mall and/or work from a 10-40 acre subject site on (hard topped) roads than from the other side of the incorporated city area, then as far as I am concerned 'it be suburban'!

Good luck!
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Did you call it Rural in your previous report? If so, since the area has developed in the interim, pehaps you could still call it Rural and comment that it's in transition to suburban.

Or, be creative like the lender I had last month. "Just call it semi-rural and we'll be happy!" I'm sure............
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
My standard reply is now, "Please have the underwriter provide me with their written definition of "rural" and "sububurban". I will not make any changes to my report that are not considered typographical or mathmatical errors, unless I have a written and signed request on company letterhead from the underwriter. If their request is deemed acceptable per their company loan purposes, I may consider changing my report. I must have this letter for my file in lieu of any audits performed by the TALCB (Texas Appraiser Licensing and Cetification Board).

I have not received a letter yet or changed the check box either.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Ooooh, I can see it now !!

Tim's letter (or paraphrases thereof - for those afraid to plaigarize :p ) race across the appraisal world like wildfire, bring all the errant papershufflers to heel and making them 'sit pretty'.

I can dream can't I :?:

But seriously Tim, THANKS! I shall steal your words verbatim in parts and parafrizzed in others to use for my very own self!
 

Pamela Crowley (Florida)

Thread Starter
Elite Member
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Thank everyone! Additional comments are still welcome.

There is no way I can call this property 'rural'. If someone in this house wanted a pizza, they would have a choice of at least 25 pizzarias that would happily deliver. I've already told that to the LO that called.

Tim, I'm going to use your suggestion. Thanks!!!
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
I'll give you my best guess as to why they want it "rural" - had this happen to me and the UW explained it. It seems that the borrower could get better loan terms due to the home being on an acreage tract in a "rural" area. They had a new loan package that was encouraging rural housing. As to whether it is "rural" or "suburban", it's your call. Just giving a viewpoint as to why the request.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
My county assessor has my most favorite descriptive term. RURBAN. developments outside the city limits. Throws UWs for a loop.
 
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