Urban, Suburban Or Rural

[Cowgirl]

I do a lot of rural property appraisals and I know there is always a difference of opinion on what makes a property Rural. I have a client that wants me to change that information on the report from Rural to Suburban because he used the wrong lender and this lender will not make loans on Rural property.

I gage property location as follows: Urban is the inner city of a large city such as Dallas.
Suburban is within the city limits of cities or towns outside that larger

 

[Cowgirl]

I have a client who is asking me to change the property location from Rural to Suburban because he used the wrong lender. My stand is that is giving false information and I do not want to be liable. I know there are appraisers who will do this to make a deal on the grounds that it is a thin line of.

My gage is as follows: Urban-Inner city of a large city
Suburban-Within city limits of any community outside that larger city
Rural-Property not within any city limits, not connected to any ciy waste system

I am I being overly cautious? This property is outside the city limits and on a self contained septic system and Co-Op water. What would you do?

Thank you in advance for your advise.

 

[Proactive]

Teresa,

I have always quoted the Dictionary of Real Estate Appraisal when this comes up:

URBAN: Describes a mature neighborhood with a concentration of population typically found within city limits or a neighborhood commonly identified with a city.

SUBURBAN: Describes a neighborhood that contains complementary properties with less concentrated population than is typically found in an urban neighborhood.

RURAL: Pertaining to the country as opposed to urban or suburban; land under an agricultural use; signifies areas that exhibit relatively slow growth with less than 25% development.

Of course you can always use the "three cow rule" (more than three cows across the street = Rural).

Hope this helps!

 

[Mountain Man]

I don't know your market, but sounds fairly reasonable to me. More cows than people.... it's rural.
Now I live in a "subdivision", 2 miles south of "town". But the county population is around 14,000. I live across from several farms, and the cows defiantly out number the people. So I consider my area to be rural. Drives the UW's nuts.

If it's rural, it is rural. They are always trying to pound a square peg into a round hole. I'd explain it, say that it is what it is, and let the LO find the correct loan program.

 

[Farm Gal]

Teresa:

this comes up every once in a while and I am going to quote Jo Ann Meyer Stratton who put it best in one sentence:

there is not a blanket explanation for rural versus suburban--it all depends on the subjects area. What is urban/suburbs in SE Arizona would be untamed wilderness in NY.

Here are two links to other discussions on the same matter:click HERE
or
HERE

It depends, but if you truely feel it ain't one, then stick to your guns and use the other
no matter how much they shoot at you.

 

[Mountain Man]

BTW, I saw your other post just below. Steve gave a good guideline.... but it is just that. A guideline, not a hard fast rule.

 

[Cowgirl]

Thank you all for your opinions. I like the statement Tim used in a prior forum to request in writting the lender's description of suburban and rural. That is what I have done.

Thanks Again

 

[Mike Garrett RAA]

Urban....in the city

Suburban....around the city

Rural....all else!

 

[Bill_FL]

I look at the density of people in the area and the general nature of the area.

I live 2 miles outside city limits with a well and septic tank. I live in a 400 lot subdivision that is nearly built out and has a waiting list for a new section that may open. That is rural?

 

[Mike Garrett RAA]

I would call it Suburban