How does the Fannie Mae Selling Guide define a neighborhood?
Correct Answer
B) A congruous group of complementary land uses
Fannie Mae defines a neighborhood as a congruous group of complementary land uses. It is not a statistical tract, a fixed radius or a single subdivision.
Why This Is the Correct Answer
Option B is correct because the Fannie Mae Selling Guide defines a neighborhood as a congruous group of complementary land uses. The definition focuses on compatible uses that function together, not on administrative or fixed boundaries.
Why the Other Options Are Wrong
Option A: A census tract used for lending statistics
Option A, a census tract used for lending statistics, is wrong because a census tract is a statistical area. It does not match the definition based on complementary land uses.
Option C: The area within one mile of the subject property
Option C, the area within one mile of the subject, is wrong because a neighborhood is defined by complementary land uses, not by a fixed radius.
Option D: A single subdivision with one builder
Option D, a single subdivision with one builder, is wrong because a neighborhood can include several subdivisions and other complementary uses. It is not limited to one builder's project.
Complementary uses fit together
A neighborhood is a congruous group of complementary land uses, pieces that fit and work together.
How to use: Use this when asked how Fannie Mae defines a neighborhood.
Exam Tip
Eliminate answers that define a neighborhood by a radius, a census tract or a single builder.
Common Mistakes to Avoid
- -Using a fixed radius as the neighborhood
- -Equating a census tract with a neighborhood
- -Limiting the neighborhood to one subdivision
Concept Deep Dive
Analysis
This question tests the Fannie Mae definition of neighborhood. The Selling Guide defines a neighborhood as a congruous group of complementary land uses. It is not a statistical tract, a fixed radius or a single builder's subdivision.
Background Knowledge
Neighborhood analysis begins with identifying boundaries and characteristics of a congruous group of complementary land uses. Homes, schools, shopping and parks that function together can form one neighborhood. Boundaries often follow physical features or changes in land use.
Real-World Application
An appraiser identifies a neighborhood made up of single-family homes, a nearby elementary school and a small shopping center, bounded by a highway and a creek. These uses complement one another. The appraiser describes those boundaries in the report.
More Market Questions
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