Appraisal Checklist Page 3
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7Is the zoning classified as non-
Yes
No
If Yes –
30.
conforming or illegal? Is the
Non-Conforming legal use:
property in an area where there
§ 1-4 family or PUD – Appraiser’s analysis must
is no zoning?
reflect any adverse affect on the value and
marketability of the property. Most investors
require that properties can be rebuilt in the event
of partial or full destruction.
§ Condo or Co-op – Appraiser must indicate that
property can be rebuilt in the event of a partial or
full destruction. File must include copy of zoning
regulations or letter from zoning authority that
authorizes reconstruction to current density.
Illegal use (zoned 1 family or 2-4 family):
§ 1 - 2 unit w/illegal additional unit or accessory
apartment (i.e. mother-in-law suite) – must
conform to the subject neighborhood and market.
Appraiser must demonstrate that improvements
are typical for market through analysis of at least
3 comps that have the same illegal use.
NOTE: The size and value of the additional unit
(apartment, etc.) should be of insignificant value
as compared to the total value.
§ 3-4 units w/illegal accessory apartment – IS NOT
eligible for sale to the agencies.
No Zoning:
§ Be sure that this is acceptable to the investor.
The property must be primarily residential in use,
with no income producing agricultural activity.
Is the present use indicated to
Yes
No
If No – Agencies will not purchase properties that
31.
be the highest and best use as
do not constitute the highest and best use and it
improved?
must be residential .
Are there any negative
Yes
No
If Yes – Carefully review to make sure there is not
32.
comments in the site section?
anything that would have a negative affect on
marketability of subject .
Is the property located on a
Yes
No
If Yes – Recorded road maintenance agreement
33.
private road?
required.
IMPROVEMENTS
ACTIONS/COMMENTS
NOTES
Is there a substantial difference
Yes
No
If Yes – Appraiser must comment that property has
34.
between the actual age of the
been maintained better than others in the area and
property and the effective age?
support the reported effective age.
NOTE:
§ This area is one of the most abused sections of
the appraisal.
§ Large unsupported differences between age and
effective age will result in an inflated value.
§ If a building is very well maintained, its effective
age will be less than its actual age. If it has been
poorly maintained, its effective age may be
greater. If it has received some upkeep, its
effective age and actual age may be the same.
Is there an indication of
Yes
No
If Yes –
35.
foundation dampness,
§ Appraiser must comment on its affect on
settlement or infestation?
marketability and value of the subject.
§ The underwriter may need to condition for
evidence that the problem has been corrected or
to provide a professional report indicating that
the problem does not pose any threat of
structural damage to the improvements.
Is the heating system
Yes
No
If No – Is it adequate to heat the property and do
36.
continuous?
the comps support the same type system?
Does the room count and
Yes
No
If No – Appraiser must correct.
37.
square footage agree with
page two of the report and the
NOTE – Pay particular attention to any below
building sketch?
grade area to make sure Appraiser is not including
this in the gross living area.
Does the interior condition
Yes
No
If Yes – Appraiser must address impact on value
38.
description reflect any “fair,
and marketability and make appropriate
poor or inadequate” ratings?
adjustments in the sales comparison section.
Are there any negative
Yes
No
If Yes – Appraiser may need to comment further.
39.
comments in the improvements
Example – If repairs are needed, make sure they
section, if appraisal is “not”
will not affect the structural integrity of the property.
subject to repairs?
If they will, repairs should be made prior to closing.
NOTE: This is where the appraiser should
comment on condition of property and make sure it
supports the subjects effective age as indicated in
#34 above.
SALES COMPARISON APPROACH
ACTIONS/COMMENTS
NOTES
Did the appraiser indicate
Yes
No
If No – Request Appraiser to complete.
40.
number of comparable
This section must be completed by the Appraiser
properties currently listed and
as it provides the underwriter with good information
sold in the neighborhood?
about the available “pool” of comparables in the
neighborhood.
Intellectual Property of RMIC
Page 3 of 7
Last Revision 10/ 31/07
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