| {"chunk":{"char_end":268788,"char_start":266853,"chunk_id":"chk_357c52e9020d6e87","chunk_index":149,"chunk_sha256":"006244068467cdb181bbaa162d21da74fa365448e51eee95e302cdc7b15d88a9","date_utc":"2026-01-27T17:46:11+00:00","doc_type":"pdf","paths":{"json":"","txt":null},"source_id":"src_b990fd25c2f90d4d","text_sha256":"006244068467cdb181bbaa162d21da74fa365448e51eee95e302cdc7b15d88a9","token_estimate":484,"warnings":["source_path=Uniform_Appraisal_Dataset___Fannie_Mae3/links/_.pdf/fannie-mae-selling-guide-supplement-uniform-appraisal-dataset-uad-36-policy.pdf"]},"text":"If the appraiser has completed the cost approach, the lender must thoroughly review the information provided to confirm that\nthe appraiser’s analysis and comments for the cost approach to value are consistent with comments and adjustments mentioned\nelsewhere in the appraisal report. For example, when the subject is new construction, any recent sale of the land must be\ndisclosed and reconciled with the opinion of site value. Another example is if the community water source is unsafe and has had a\nnegative impact on housing prices throughout the area, lenders should expect to see an amount indicated for external\ndepreciation in the cost approach. Additionally, if the improvement analysis indicates that it is necessary to go through one\nbedroom to get to another bedroom, lenders should expect to see an amount indicated for functional depreciation.\n\nNote: Physical, functional, and external depreciation in the cost approach only applies to the property’s improvements, not the\nsite. If the property has an adverse impact due to a site influence, such as arterial street location, appraisers must account for this\nin the opinion of site value.\n\nIncome Approach to Value\n\nThe income approach to value is based on the assumption that market value is related to the market rent or income that a\nproperty can be expected to earn. The income approach to value is required in the valuation of two to four-unit properties and\nmay be appropriate in market areas that consist of single family properties when there is a substantial rental market. The income\napproach to value may not be appropriate in areas that consist mostly of owner-occupied properties because adequate rental\ndata does not exist for those areas. However, USPAP requires the appraiser to develop and report the result of any approach to\nvalue that is necessary for credible assignment results. If the appraiser believes the income approach is necessary for credible\n"} | |