In a Fannie Mae appraisal, which item does not belong in the appraiser's site analysis?
Correct Answer
A) Neighborhood crime statistics
Site analysis covers physical and legal characteristics such as size, shape, topography, drainage, utilities, zoning and adverse conditions. Fannie Mae lists references to crime rates or related data as an unacceptable appraisal practice, so crime statistics belong in neither the site nor the neighborhood section.
Why This Is the Correct Answer
Option A is correct because neighborhood crime statistics are not a physical or legal characteristic of the site. Fannie Mae lists references to crime rates or related data as an unacceptable appraisal practice. As a result, crime statistics belong in neither the site section nor the neighborhood section of the report.
Why the Other Options Are Wrong
Option B: Site size, shape and frontage
Option B, site size, shape and frontage, is wrong because size, shape and frontage are core physical characteristics of a site and are a standard part of site analysis.
Option C: Topography and drainage
Option C, topography and drainage, is wrong because the land's contour and how water moves across it are physical site characteristics that can affect use and value.
Option D: Availability of utilities
Option D, availability of utilities, is wrong because whether water, sewer, electricity and other services are available is a standard element of site analysis.
Site means the dirt
Site analysis describes the land itself, its size, shape, slope, drainage, utilities and legal limits, not social statistics about the area.
How to use: Use this to spot which listed item does not describe the physical or legal land.
Exam Tip
For 'does not belong' questions, find the one item that is not a physical or legal feature of the land; items listed as unacceptable practices are strong candidates.
Common Mistakes to Avoid
- -Placing crime data in the neighborhood section instead of omitting it
- -Treating utilities as a neighborhood rather than a site item
- -Overlooking topography and drainage as site characteristics
Concept Deep Dive
Analysis
This question tests what belongs in site analysis and recognizes a Fannie Mae prohibition. Site analysis covers the physical and legal characteristics of the land, such as size, shape, topography, drainage and utilities. Crime statistics are not a site characteristic, and Fannie Mae lists references to crime rates as an unacceptable appraisal practice.
Background Knowledge
Site analysis describes the land itself, including dimensions, area, shape, topography, drainage, soils, utilities, zoning, easements and adverse conditions. Neighborhood analysis looks at the surrounding market area. Fannie Mae identifies certain subjective or potentially discriminatory references, including crime rates, as unacceptable appraisal practices.
Real-World Application
While preparing a Fannie Mae appraisal, an appraiser describes a lot's size, irregular shape, gentle slope and public utilities. The appraiser does not include local crime data in the site or neighborhood sections.
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