404: Site Analysis

The property site should be of a size, shape, and topography that is generally conforming and acceptable in the market area.  It must also have competitive utilities, street improvements, and other amenities.  Since amenities, easements, and encroachments may either detract from or enhance the marketability of a site, the appraiser must comment on them if the site has adverse conditions or is not typical for the neighborhood.  If there is market resistance to a property because its site is not compatible with the neighborhood or with the requirements of the competitive market, the lender should underwrite the mortgage more carefully and, if appropriate, require more conservative mortgage terms.