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Appraising a home with an additional lot

Discussion in 'Urgent - Help Needed' started by Sam Levin, Feb 28, 2006.

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  1. Sam Levin

    Sam Levin New Member

    0
    Sep 22, 2004
    Professional Status:
    Licensed Appraiser
    State:
    New Jersey
    I am appraising a home that is on one lot, and the owner owns an additional adjacent lot (separate lot number). I am determining now if this lot is conforming by itself - and can be used on it's own as a buildable lot. As a residential Fannie appraisal, is the adjacent lot supposed to be considered a separate entity and have a separate, vacant land appraisal (and loan)? Or should it be valued as a home on a large parcel of land (that includes both lots)? Or does it depend on whether the lot is buildable on it's own? Thanks for the help.
     
  2. Thomas Fiehler

    Thomas Fiehler Senior Member

    2
    Jun 2, 2003
    Professional Status:
    Certified General Appraiser
    State:
    Ohio
    If it is a buildable site then you would value it as a separate lot, otherwise it is just excess land and usually worth less on a sq. ft. basis than the normal size lot.
     
  3. Wendy

    Wendy Senior Member

    0
    Feb 23, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Not sure of the answer, but...

    If the vacant site is a separate legal entity, I would think that it has nothing to do with the improved site unless it is the access.

    Even if you sold them as one, there would still be two transfers. (edit)

    I would not appraise the extra lot on the same form as the house.
     
    Last edited: Feb 28, 2006
  4. Hank Henry

    Hank Henry Junior Member

    0
    Jan 12, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    Check with the lender, not some half-wit loan officer....
    See if both parcels on the title and go from there.
     
  5. Mr Rex

    Mr Rex Elite Member

    88
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Wendy, Florida must be different than NC. Here it would transfer on one deed, so obviosuly this may require a localized answer.
     
  6. Wendy

    Wendy Senior Member

    0
    Feb 23, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Michael,

    No it's not different in Florida, I'm just in a fog today. They can go on one deed, but are still noted as two parcels w/ separate legals.

    I think I'll go take a nap now......after I edit my post above!
     
  7. David Wimpelberg

    David Wimpelberg Moderator Staff Member Moderator

    29
    Mar 30, 2005
    Professional Status:
    Certified General Appraiser
    State:
    New York
    Fannie doesn't do land loans.

    First I'd check the ownership on the parcels; is ownership exactly the same or is there another entity one of the deeds? The I'd check with the planning (or building) department on the details regarding whether the lots are single and separate and/or buildable.
     
  8. Mr Rex

    Mr Rex Elite Member

    88
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    What is your assignment? Is it A)the house on a big (2 lot) site or is it B)a house and 1 lot and then C) another lot?
     
  9. Karl

    Karl Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Arizona
    Does it stands on it's own can it be sold by itself? YES means NO Meaning that if it is it's own parcel, It has no value to the Home & Parcel
    home is on., it has value to the home owner he can Marry" the two lots into one & Site Value MAY be less for the additional land or keep it seperate & do whatever he wants with it. he can even Blend the additional lot into Appraisal/Loan he "Locks" it up in the loan for whatever the Term of the loan is, & very difficult to get it freed up from the loan. Lender will PROBABLLY give him very little of the ACTUAL Value of the additional lot, in the loan.
     
  10. josephdifranco

    josephdifranco Member

    0
    Mar 19, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Illinois
    In Chicago, I see listings which state a home and vacant lot "sold together as a package" If you have any comps sold this way, that could be a direction for you.

    I would tell the lender that the title must reflect both lots. A lender once wanted to include a separate deeded parking space with a condo, and got the title company to include it in the title.

    Good luck,
     
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