Appraising a Physical Segment

   Previous topic Next topic JavaScript is required for the print function  

Selling Guide, Part XI, Section 404: Site Analysis

 

The property site should be of a size, shape, and topography that is generally conforming and acceptable in the market area.  It also must have comparable utilities, street improvements, adequate vehicular access, and other amenities.  Fannie Mae is clarifying that the appraisal must include the actual size of the site and not a hypothetical portion of the site.  For example, the appraiser may not appraise only 5 acres of an undivided 40-acre parcel.  The appraised value must reflect the entire 40-acre parcel.

 

This appraisal consists of the residential improvement and 5 acres of a 51-acre tract.  The approximate 5 acres included in the appraisal is approximated on the attached survey of record.  Although appraising a physical segment of a property is permitted by the  USPAP, Fannie Mae will not purchase a mortgage if the subject property is a physical segment. This appraisal is not intended for use in a mortgage transaction that involves Fannie Mae or Freddie Mac (FNMA Selling Guide,Part XI, Section 404:  Site Analysis).

 

Modified:  11/17/2009

Page url: http://www.georgiaappraiser.com/comments/?appraising_physical_segment.htm