Code of Massachusetts Regulations
761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY
Title 761 CMR 21.00 - Seller's Guide
APPRAISAL GUIDELINES
Section 21.56 - Valuation

Universal Citation: 761 CMR 21.00 MA Code of Regs 21.56

Current through Register 1537, December 20, 2024

The property valuation will be based on the structural condition of the property and comparable values of similar structures. The value may be determined by several factors: the market method which compares the sales price of similar properties; the income method which bases value on the income produced by the property; the replacement method which sets the value at the replacement cost of the house. Each of these methods will be used cautiously and with the objective of improving the housing market in urban areas.

The Seller must exercise judgment in avoiding approval of Mortgage Loans which would obligate the Borrowers to invest more in a property than they could recover from the sale of the property. However, every effort will be made to respond positively to applications for Mortgage Loans to:

(a) make emergency repairs;

(b) bring the property securing the Mortgage Loan into compliance with housing codes, building codes and other health and safety requirements including the removal of lead paint;

(c) increase the efficiency of the structure in conserving energy;

(d) rehabilitate a residential structure in an area where few, if any, other structures have undergone such rehabilitation.

Disclaimer: These regulations may not be the most recent version. Massachusetts may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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