Mixed use FNMA

[Fernando]

Highest and Best Use for the land?
More and more land in Napa are being developed into housing.

 

[J Grant]

Regardless of how much or how little income is generated, Developing an income approach is not part of the assignment, it is being appraised as a residential property even though portions of it are being used for a commercial purpose.

I believe it has to be at least 51% residential. Or has that changed? Been a long time since I have done onet

 

[Deleted member 142783]

Regardless of how much or how little income is generated, Developing an income approach is not part of the assignment, it is being appraised as a residential property even though portions of it are being used for a commercial purpose.

I believe it has to be at least 51% residential. Or has that changed? Been a long time since I have done onet

Just because income approach is not developed, does not mean there is no value to what is being appraised.

If you have an adu with no income approach, value is still there

 

[J Grant]

Just because income approach is not developed, does not mean there is no value to what is being appraised.

If you have an adu with no income approach, value is still there

Yes, but that is a different issue. An ADU, regardless of whether an income approach is developed, has a value that the appraiser is allowed to add for a res loan because the ADU is still a residential use.

Whereas in mixed-use, does Fannie instruct the appraiser not to value the commercial elements ( even if they have value in the market )

Appraisal Requirements for Mixed-Use Properties​

The appraisal requirements for mixed-use properties must

• provide a detailed description of the mixed-use characteristics of the subject property;
• indicate that the mixed use of the property is a legal, permissible use of the property under the local zoning requirements;
• report any adverse impact on marketability and market resistance to the commercial use of the property; and
• report the market value of the property based on the residential characteristics, rather than of the business use or any special business-use modifications that were made.