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One Or Two Appraisals

Discussion in 'General Appraisal Discussion' started by James Sturm, Jul 26, 2005.

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  1. James Sturm

    James Sturm Member

    7
    Jan 4, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    Been sitting on an appraisal assigment for over one month. Initial research found the subject property having encroachments on one of the city's lots (west suburb of Chicago).Therefore, the assigment was put on delay. Spoke with building department who stated the city would not permit the property to sell with the encroachment. The subject site had (3) tax identification numbers. The subject site was improved with a duplexed income property on two parcels (small sites) and the garage being on the additional parel. According to the city and a survey supplied to me by the city, the encroachments were a driveway, one entry for the subject building, and the garage.

    A simple cure was found by the seller purchasing the two adjacent lots to the south of the subject site (cost of the two sites was less than the cure for the encroachments). According to the client, these lots were purchased by the seller and have closed. My gut tells me that this assignment is two appraisal assignments: one for the improved parcel and one for the two adjacent vacant properties. I am still awaiting for instructions on how to proceed with this assignment. If this assignment is for two appraisals, should the vacant parcel (50 ft site) be subdivided to eliminate the current encroachments adjacent to the north? Any sugguestions would greatly be appreciated.
     
  2. Bill_FL

    Bill_FL Senior Member

    0
    Aug 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    Well, first, are the two lots buildable?

    Second, is not the transerfability of the improvements dependent on the recently purchased lots? Why do two appraisals?

    Third--If I am the owner, I imediately get these properties re-recorded as 1.
     
  3. James Sturm

    James Sturm Member

    7
    Jan 4, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    The site purchased to the south of the subject site was a 50' x 131' foot site. The garage was located at the rear south of the site purchased. Zoning restrictions are 4,950 sq ft with a minimum width requirement of 39.5 feet. Wondering how long it would take the seller to combine the site into one site? I like your suggestion.
     
  4. Jo Ann Meyer Stratton

    Jo Ann Meyer Stratton Elite Member

    41
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    If the highest and best use site would be all the lots--then that is what you would include in your appraisal report. Separate assessor's parcel numbers are only a bookkeeping function for taxation purposes and have nothing to do with how a property can be encumbered for mortgage purposes. And the recorded deed for the mortgage lien can have as many legal descriptions as the parties want encumbered by that mortgage.

    So are the vacant lots buildable on their own? Do the existing lots required the vacant parcels to enable them to have a highest and best use? It sounds like the vacant lots are necessary for the improved lots to have adequate parking, solve easement and encroachment issues, etc. If that is the case, a single appraisal assignment and report that includes all lots and all improvements. Show in your report all assessor's parcel numbers and legal descriptions involved that create a site that would be economic, legal, physical entity. then it would be up to the lender to have the appropriate legal descriptions on their recorded documents. Unless there is some bookkeeping function the assessor or planning and zoning department requires--the owner doesn't have to do anything--they already own the lots. Sites that have been platted and identified on a recorded subdivision map cannot be changed, the individual lot numbers remain forever. But one person can own one lot or hundreds of lots in a subdivision and the legal description does not change.
     
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