AMC is demanding that I make the change based on the engagement letter:
"Fannie Mae/Freddie Mac Quoted $745 for land appraisal per fee sheet- must have approval to proceed if fee will be different. Land purchase closing 4/20, need appraisal back as soon as possible.
CLIENT-SPECIFIC REQUIREMENTS
1. Land Appraisals –
If the subject has any improvements, appraiser to use a hypothetical condition that those improvements do not exist on the property (report would be completed “subject to” that hypothetical condition)."
I tried to explain to the AMC flunkie over the phone that whoever is coming up with this at the tiny credit union who is the client does not understand the difference between an improvement TO the land and an improvement ON the land.
"Oh ok, I'll push back, but if they want it changed then you have to change the report"
How, can I explain that a drilled and lined well is a utility not a standing improvement?
AI Overview
A well is generally considered an improvement
to the land (land improvement/site improvement) rather than an improvement
on the land (structure/building) because it enhances the land's utility and value, similar to fencing, septic systems, or paving, rather than being a habitable building.
- Improvement to Land (Site Improvements): These are infrastructural additions that make the land more useful or valuable, such as utilities, wells, septic systems, driveways, and fences.
- Improvement on Land (Structures): These are typically buildings or permanent attachments (like a house or barn) that sit on top of the land, generally classified under different tax or construction rules.
I suppose that should work. Any additions that you would include?
