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REA - HUD and FHA Guidelines for Valuation Analysis for Single Family and One to Four Unit Dwellings - 13 APPENDIX D: COMPREHENSIVE VALUATION PACKAGE PROTOCOL - Part 18 - Real Estate Appraisal From A to Z

VC-4 Well, Individual Water Supply and Septic

Field

Protocol

Property lacks connection to public water (Handbook Chapter 3-6 A.5)

Note the source of domestic water. If the property is already connected to a public system, mark "NO in the VC form. If the property is equipped with a well, determine whether connection to a public system is feasible. If connection is feasible (3% or less of the estimated value of the property), hookup is MANDATORY. Condition the appraisal on connection to hookup, mark "YES " in the VC and prepare the appraisal "as-repaired" subject to the satisfaction of that condition. For wells, condition the appraisal on the water-testing requirement.

Property lacks connection to public/community sewer system (Handbook Chapter 3-6 A.5)

Note the sewage connection-public/community or septic. If property is already connected to a public system, mark "NO " in the VC form. Determine whether connection to a public system is feasible. If connection is feasible, hookup is MANDATORY. Condition the appraisal upon its hookup, mark "YES " in the VC and prepare the appraisal "as-repaired" subject to the satisfaction of the condition. If the property is served by dug wells, springs, lakes, cisterns or rivers, it is ineligible. Mark "YES" in the VC and explain.

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VC-5 Wood Destroying Insects

Field

Protocol

Structure and accessory buildings are ground level and/or wood is touching ground (Handbook Chapter 3-6 A.6)

If yes, require a pest inspection, mark "YES " in VC-5, condition the appraisal on that requirement and prepare the appraisal "as-repaired" subject to the satisfaction of the condition.

The house and/or other structures within the legal boundaries of the property indicate evidence of active termite infestation (Handbook Chapter 3-6 A.6)

Examine the subject property for readily observable evidence of wood boring insect infestation and excessive dampness or large areas where the vegetation is dead. Indications that a licensed pest control professional should be required for an inspection of the subject property include mud tunnels running from the ground up the side of the house, swarms around wood structures and small piles of wings around windows. If the above conditions exist, make the requirement for a termite inspection from a licensed pest control contractor, condition the appraisal on the requirement, mark "YES " in the VC and prepare the appraisal "as-repaired" subject to the satisfaction of the condition. Do not require a pest inspection based solely on the age of a property. Inspections are necessary whenever there is evidence of decay, pest infestation, suspicious damage or when it is customary to the area or required by state law.

 

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