• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

FHA & appraising a rural property.

Status
Not open for further replies.

Rob Lentz

Thread Starter
Junior Member
Joined
Nov 8, 2005
Professional Status
Certified General Appraiser
State
Michigan
hey guys,
I recently appraised a 20 acre rural residential property for an FHA loan.

I provided 4 comps w/in the past 12 months that have 10-20 acres each and were the best I could find - within a 10 mile radius of the subject.

U/W says that they want 2 additional comps within the past 6 months...
I'm thinking (#@!*&), umm, if I had them I would have put them in there in the first place.

I can add two more comps...but neither is within the past 6 months (one is 7 months old and the other 10 months old)...both are supportive of my original opinion

My other thought is to add a listing or two, which I'm sure I could find.

What would you do?

Also, isn't there a reference in Fannie guidelines pertinent to this common problem in rural areas...something addressing that the 12-month guideline is simply a guideline and that in some cases the appraiser may have to exceed the guideline (not that I have, mind you)...just somebody switched the guideline to 6 months on me. If anyone has a quick link I'd be most appreciative...in the meantime I'm going looking for it...

Thanks in advance
Rob Lentz
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
If you set them up with narrative comments explaining that, in general, rural properties on acreage tracts sell less frequently than other types of residential property and this in combination with a slow market further limits the available number of sales from which to draw comparable sales, they will usually not be so picky about wanting perfect comps.

Why go to Fannie when this is addressed by FHA. See the revised Appendix D to 4150.2 and look under FHA Quck Tips.

 

Chris Colston

Elite Member
Joined
Jul 24, 2003
Professional Status
Certified Residential Appraiser
State
Florida
What underwriter? The DIRECT ENDORSEMENT UNDERWRITER, or the LO blowing smoke? If this is coming from the DEU, get it in writing. Anyone other then the DEU, have them submit the request THROUGH the DEU.

Only requests from the DEU will be honored once a report has been completed and submitted.

We need to stand firm on THIS folks!!! We are not to talk to anyone other than the DEU once the report has been submitted. That has not changed!
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
What is the TYPICAL size of homesites in the neighborhood? If it is significantly smaller than the 20 acres, the FHA rule of thumb used to be that we consider all land above the typical size to be classified as excess land and given no value. Then you use comps that are more in line with the TYPICAL lot size.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks