What Type of Appraisal Is Required for My Land Loan?

When applying for a farmland loan, lenders typically require a professional appraisal to determine the value of the property. The type of appraisal required can vary depending on the lender and the specifics of the loan.

Download the new Ag Land Loans 301: Land Assessment guide from FBN® Finance to learn more about ag property appraisals or continue reading below to find out which types of appraisals are most common.

Certified General Appraiser

Appraisals need to be completed by a certified general appraiser for land loans from FBN Finance. They are requested to use a narrative-style appraisal and the Uniform Agricultural Appraisal Report (UAAR).

A certified general appraiser has met the highest level of state certification for real estate appraisal and adheres to the Uniform Standards of Professional Appraisal Practice (USPAP), which ensures that their appraisals are conducted ethically and competently. They will conduct a thorough analysis, including site visits, market research, and comparisons with similar properties, to provide an accurate valuation.

Automated Valuation Model (AVM)

AVM is a technology-driven method used to estimate the value of real estate properties, including farmland, without the need for a physical inspection by an appraiser. AVMs use mathematical modeling combined with a database of property information to generate property valuations.

Uniform Agricultural Appraisal Report (UAAR)

This is a standardized form used specifically for agricultural properties. It includes detailed information about the land, improvements, and any agricultural production.

Narrative Appraisal

This is a more detailed and comprehensive report that includes a thorough analysis of the property, market conditions, and comparable sales. It is often used for larger or more complex properties.

Restricted Use Appraisal

This type of appraisal is less detailed and is typically used for internal purposes by the lender. It may not be suitable for all loan types.

Drive-By Appraisal

In some cases, a lender may accept a less detailed appraisal where the appraiser only observes the property from the road. This is less common for farmland loans but may be used in certain situations.

Desktop Appraisal

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