cost approach
174) Site Value
12/05/07
Dear Henry --
Is it true, that even though the cost approach may not be applicable due to the age of a home, that the opinion of site value is still required for a Fannie Mae loan?
Laurie Stewart geminiappraisals@charter.net
Dear Laurie,
I am not aware of any published rule from Fannie Mae that requires always providing a site value. If it does exist maybe one of our readers will send it along to me. However, the client certainly has the right to ask for it as part of their scope of work.
Fannie Mae does make it clear that the final decision as to whether it is necessary to provide the cost approach to make a credible appraisal is up to the appraiser. They go further saying that if the cost approach is used, they do require supporting information.
H2
Is it true, that even though the cost approach may not be applicable due to the age of a home, that the opinion of site value is still required for a Fannie Mae loan?
Laurie Stewart geminiappraisals@charter.net
Dear Laurie,
I am not aware of any published rule from Fannie Mae that requires always providing a site value. If it does exist maybe one of our readers will send it along to me. However, the client certainly has the right to ask for it as part of their scope of work.
Fannie Mae does make it clear that the final decision as to whether it is necessary to provide the cost approach to make a credible appraisal is up to the appraiser. They go further saying that if the cost approach is used, they do require supporting information.
H2