source:
  type: guide
  id: hud-4000-1-ii-a-definition-2
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Definition
    (09/14/2015)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Definition
    (09/14/2015).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-a-definition-2-full
  canonical_id: hud-4000-1-ii-a-definition-2-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Definition
    (09/14/2015)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — a. Definition
      (09/14/2015)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: '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'
  judgment: false
