FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Definition (09/14/2015)

FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Definition (09/14/2015)

a. Definition (09/14/2015) Unimproved Property Appraisal refers to the valuation of an interest in land without human made Structures. b. Standard (09/14/2015) An Unimproved Property Appraisal may be warranted when: II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT D. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages 8. Unimproved Property Appraisal Handbook 4000.1 862 Last Revised: 11/26/2025 • the Property does not include building improvements; • the prior improvements on the Property were demolished; • the improvements are in such deteriorated condition as to provide no Contributory Value to the Property; or • condemnation proceedings by the local authority have acquired the improvements in part or in their entirety. c. Required Analysis and Reporting (09/14/2015) The Appraiser must provide a written narrative format or a commercially available reporting form. The appraisal report must include, at minimum, the following: • property address; • legal description; • owner of record; • occupancy; • assessment and tax information; • property rights appraised; • site size; • zoning; • highest and best use; • shape; • topography; • drainage; • availability of utilities; • if it is located within a FEMA-designated SFHA; • a Sales Comparison Approach (SCA) Grid, including: o detailed information on at least three comparable sales; o a quantitative comparison of those property attributes to the subject; and o a comparison of the number of comparable unimproved properties sold with the number of offered and listed for sale to determine supply and demand, absorption rate, and other market data required so that the report is not misleading; • certification and limiting conditions as included in Fannie Mae Form 1004/Freddie Mac Form 70, Uniform Residential Appraisal Report (URAR); and • any other forms and documentation necessary to comply with USPAP Standard 2. When completing the SCA Grid, the Appraiser must compare and appropriately adjust the sales of comparable unimproved building lots or sites for differences in location, size, zoning, utility connection or availability of utility connection, site improvement and any other pertinent factors. The Appraiser must then reconcile the adjusted sales into a value conclusion. The Appraiser must calculate and extract any costs to be incurred from razing the existing improvements and cleaning up the site from the value of the supporting land to arrive at a final conclusion of value of the site as if vacant and ready to be put to its highest and best use. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT D. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages

Source: FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Definition (09/14/2015) · source URL · snapshot 8c03836f77f317e1