Rural Area Appraisals: Freddie Mac Guidelines and Property Eligibility Requirements

Appraising rural properties can be challenging. A lack of comparable sales, uniqueness of homes, time between sales, and an expansive geography are factors appraisers must consider. This often means more time, research, and justification to determine an acceptable value for a property. To make this task less daunting, Freddie Mac identified common pain-points for, and misconceptions among, appraisers and lenders regarding collateral guidelines for rural properties, and with AI, developed rural appraisal training for practicing residential appraisers. This seminar addresses:  eligible and ineligible property qualifications; price ceiling limitations in rural markets; how urban development, farm productivity, and conversion to residential uses affect land prices; highest and best use problems in rural residential appraisals; how the Freddie Mac Appraisal Guidelines relate to rural appraisals; how to extract and support adjustments in rural residential appraisals; and how to support deductions for unusual designs or functional problems.