Land value

[Mike Boyd]

I have not seen anything eliminating the requirement that we include the lot value (only) in the cost approach. If the house is less than a year old or has never been occupied then you must complete the entire cost approach. But, on older homes, they have, at least in the past, required the land value and the remaining economic life.

Anyone have any factual difference of opinion?

 

[CANative]

The site value opinion is a component of the cost approach. If the cost approach is not developed where is the need for a site value opinion?

I cannot find any requirement in HUD/FHA documents for providing a site value opinion when the CA is not developed.

It used to be a Fannie requirement. Maybe your client (BofA?) is confused.

 

[Mike Boyd]

No, it is an FHA report and everyone knows it.

The ARE FHA rules about being cooperative and asking for site value is not unreasonable. But I KNOW there use to be a requirement to provide the site value even if the cost approach was not used.