Fannie Mae and "Multiple Parcels"

[alebrewer]

My understanding is that the client does not want two adjoining separate legal lots appraised as though they were one legal lot, but as one economic unit, in one appraisal. Recently appraised a property with two adjoining beach front sites. One site was improved with a main house as well as a guest house, while the adjoining site benefited from the tennis court and swimming pool. Historically both sites have always sold together. There are recorded certificate of compliances for each site, stating each site is a legal lot.

that makes perfect sense - a point that might well be proffered to the ASB for clarification to the FAQ, as I think you and J are probably right about that.

 

[J Grant]

Ah my friend, I never nor meant to imply the below...

To J's point, if her determination is that the 2nd lot does not have a separate H&B, then the guidance is that she can invoke a HC, and appraise the property 'as if it were one lot'.

I've been saying the opposite ! I said, in post after post, that this is not appraised " as if it were one lot",!! And I never said to invoke a HC . I also said the 2nd lot can have a separate HBU, but that since it is conveyed with a house, the use of the vacant lot for that conveyance together is value in use , since it is not sold separate or offered for sale separate as of eff date of appraisal.

 

[Andrei Fin]

A HC is contrary to fact. In all the cases I have seen, it's an absolute fact that there were two separate parcels (legal, APN, and address) bought, sold, and valued by local market participants as one property, with the second buildable parcel receiving minimal consideration as value in use.

 

[J Grant]

It is my understanding that (a) they are identified as two separate parcels (e.g. two legals, two APN's, maybe two addresses?), but (b) the analysis would require the HC that they were, in fact, one lot. I'm thinking of the grid - you combine the site sizes as one site size in the grid, do you not?

NO, I do not state nor does Fannie direct that there is a HC they are in fact, one lot.
The property remains a house on a site and the adjacent vacant lot, valued as one property being conveyed ( one economic unit as GregB describes )

 

[J Grant]

I 've appraised a few li

My understanding is that the client does not want two adjoining separate legal lots appraised as though they were one legal lot, but as one economic unit, in one appraisal. Recently appraised a property with two adjoining beach front sites. One site was improved with a main house as well as a guest house, while the adjoining site benefited from the tennis court and swimming pool. Historically both sites have always sold together. There are recorded certificate of compliances for each site, stating each site is a legal lot.

I've been saying this for a hundred posts and getting all kinds of heat for it- took you this long to say the same thing, ...okay, I was alone all this time with same message getting mud thrown on me. You are correct about it btw, one of the few.

 

[gregb]

I 've appraised a few li

I've been saying this for a hundred posts and getting all kinds of heat for it- took you this long to say the same thing, ...okay, I was alone all this time with same message getting mud thrown on me. You are correct about it btw, one of the few.

I have been a busy boy with CE and work, plus I enjoy to see the Socratic method roll out. Little heat never affected a true New Yorker . I did drop a hint in a similar thread, that plottage/assembly was being ignored.

Bad advice from Fannie--"Multiple Parcels" from Dec. 2019 'Appraiser Update'

Telling an appraiser to include a value in use is what? They didn't say market value, they said value in use..... it's so obvious its scary how you're completely missing the point fannie did not say do not appraise MV, it said for loan the second lot purpose is value in use. I would not...

appraisersforum.com

 

[alebrewer]

NO, I do not state nor does Fannie direct that there is a HC they are in fact, one lot.
The property remains a house on a site and the adjacent vacant lot, valued as one property being conveyed ( one economic unit as GregB describes )

I know it's picking nits, but you really are 'appraising' it as if it were one lot - even though you're not identifying it as one lot. By appraising, I mean estimating market value (and all that encompasses). Back to the grid question - you combine the site sizes into one for analysis purposes don't you? I think that is the point of the HC. To you and Greg's point, though, it might be more descriptive to refer to the analysis as one 'economic unit' as opposed to the FAQ citing the analysis as 'one legal lot'.

 

[George Hatch]

They might sell to a single buyer ... it would be a smaller group of buyers, but some buyers might want two properties bought together: one to live in one to rent ,or both to flip, who knows. As with any other appraisal a case by case basis .

Do you see what you're saying here?

 

[J Grant]

I know it's picking nits, but you really are 'appraising' it as if it were one lot - even though you're not identifying it as one lot. By appraising, I mean estimating market value (and all that encompasses). Back to the grid question - you combine the site sizes into one for analysis purposes don't you? I think that is the point of the HC. To you and Greg's point, though, it might be more descriptive to refer to the analysis as one 'economic unit' as opposed to the FAQ citing the analysis as 'one legal lot'.

I actually never said one legal lot --- Though one economic unit sums it up neatly.

How could it be possible that I stated numerous times in both threads that it is not being appraised as if it were one lot? It is being appraised as if it were one property, comprised of a lot and adjacent house

As far as how to report it on grid, I think it would be cleaner to line item out the second lot rather than combine site sizes as one large one but either way could work as long as what is being appraised is clearly explained and disclosed.

 

[J Grant]

Do you see what you're saying here?

What did I say, it is a smaller group of buyers. Indeed, I meant it You agree, correct?

Many niche properties have a small pool of buyers . We deal with it as part of analysis and if it affects price and or marketing time