Fannie Guru? 30% land to value rule...

[Anonymous]

Years ago I worked for an appraisal service that did work for C and D paper lenders. For some reason I was given two assignments in Cape May, N.J., Both properties were near the water, a bayfront and an Ocean View. Both properties were improved with old small shack type houses, tear downs. When I wrote my reports I used land sales in addition to house sales since the improvements didn't add to the value of the properties. The in-house review appraiser told me that my work was no good. She actually said to me, "We appraises houses, we don't appraise land". Believe it or not that company is still in business and making money.

 

[jtrotta]

Yep, it's an old Rule; yep it's out dated; yep underwriters have their own guidelines 8O

But Ben has the golden answer; and to quote another old saying;

"use it or loose it" 8)

 

[bradellis]

Fannie no longer has this requirement.

Brad Ellis, IFA,RAA