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.
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Who Should Enroll
AI CE Points
Attend:
35
Course Offerings
We are not currently offering this course, but please contact us for additional options and more information.
Course Objectives
- Describe issues lenders have when defining rural markets and the eligibility of properties that secure loans to be purchased by Freddie Mac.
- Identify the issues regarding defining rural, suburban, and urban neighborhoods.
- Describe geographic and demographic issues in rural appraisals.
- Demonstrate issues of highest and best use analysis in rural appraisals.
- List and describe Freddie Mac Guidelines in section 5601 of the Freddie Mac Single Family Seller/Servicer Guide.
- Review methodologies for extracting and supporting adjustment rates for comparable sales.