Although some lenders have removed ap- praisals from
the underwriter's plate,
understanding property is
an essential part of loan
decisioning. If there is a
foreclosure, the lender
ends up with the property,
not the borrower.
URBAN VERSUS SUBURBAN
VERSUS RURAL
Urban areas once comprised upper-end and
middle class areas plus what was politely called
"inner-city." As expanding populations caused
lengthy commutes and transportation costs in-
creased, developers and eco-types repurposed
central city properties. Gentrification resulted,
and even car-centric cities like Los Angeles
touted mass transport, added bike lanes, and
relaxed zoning on live/work projects close to
light rail stations. Underwriting guidelines on
mixed use properties have become less restric-
tive. As public acceptance of new urban hous-
ing options grows, availability of similar compa-
rables will increase.
Suburbs have been depicted as cookie-cutter
communities where conformity squashes individualism. However, as developers caught on
that buyers value personalization and homes in
maturing suburbs were renovated to their own-ers' tastes and needs, the stereotype began
eroding. In some locations, belief in the cookie-cutter generalization holds true only for people
who haven't visited the suburbs lately. Relative
to urban and rural areas, suburban residential
properties have higher conformity, and appraisers enjoy the relative ease of comparable selection and fewer adjustments.
BY ANNE ELLIOT T
