eBook - Real Estate Appraisal from A to Z

• 8. Please address the eligibility of properties located within 300 feet of a gas station.

The appraiser would note this on the VC Form, describe its impact on value or marketability on the URAR, and finish the appraisal. It would not necessarily render the property unacceptable. The DE Underwriter is required to provide a written disclosure to the borrower that the property is located within 300 feet of a gas station.

• 9. Page 2-1-C of the Handbook states that, if a dwelling is less than 2 years old, the appraiser must indicate the year and month the home was completed. What is meant by the term "completed" and explain why this information is necessary.

The purpose of this provision is for the application of the Cost Approach. The Handbook requirement will be reduced from two years to "thirteen months". "Completed" is defined as 100 percent complete.

• 10.  Page 2-10 of the Handbook states that low voltage power lines may not pass over any structure on the property. What structure or structures are we discussing?

"Structure" is limited to the primary living unit. Should the appraiser indicate that the lines pass over other structures they should keep in mind the safety of the occupants of the property. If the line(s) is/are considered unsafe, it should be noted on the VC Form to require correction of the condition to satisfy the safety issue.

• 11.  If the appraiser is unable to take the required photographs to show the front, rear and sides of the improvements because of shrubbery, topography, etc., what should he/she do?

The appraiser should make every attempt to take the required photographs. If not possible, the appraiser should so state on the appraisal report.

• 12.  If the appraiser does not know the location of the private well or septic tank drain field, how can the distance between them be documented?

If the appraiser is unable to make the determination, a condition requirement will be made on the VC Form. The DE Underwriter can clear the condition by obtaining satisfactory evidence from a qualified party that the distance requirements (between the two systems, and between the systems and property line) have been met.

• 13. Section 3-6A-11 indicates that the crawl area space must be 18" - is this the distance from the bottom of the joists or from the sub-floor? Please clarify "Enter" for crawl space and attic areas.

The Handbook will be clarified, as follows: "The minimum distance is 18 inches from the bottom of the joists". The appraiser will enter the crawl space (at a minimum entry of the head and shoulders) to observe conditions except: when access is obstructed, when entry could damage the property, or when dangerous and adverse situations are suspected. In any event, the crawl space and accessibility dictates the level of entry. However, the appraiser will visually examine the crawl space for inadequacies (see HUD HB Chapter 3-6 A-11 and Protocol for VC-8). The attic must be examined whether access is by pull-down stairway or scuttle. At a minimum head and shoulders entry. However, size and accessibility dictates the level of entry. The requirement to examine the crawl space and attic is not a new requirement nor has the requirement changed.

• 14. When is a handrail necessary?

A handrail is necessary usually when three or more risers are present. However, if a situation poses a safety issue for the occupants, a condition requirement should be made regardless of the number of risers.

• 15. VC-11 references multiple broken windows. What if there is only one broken window?

All broken windows should be repaired or replaced, as necessary.

• < Prev
• Next >