Fannie Mae and "Multiple Parcels"

[J Grant]

You're late to the thread but I've been saying all along that you check NO for HBU and Fannie has no problem with this (due your own DD but this is personal experience from the lender side).

The issue here is not HBU which everyone has agreed upon but rather Scope of Work. You've been asked to provide Market Value (most probable) for the Subject Property which is two parcels combined under one legal description and loan, having the same owner and they are adjoining. MV of (A+B) not MV of A + MV of B.

Andrei, are you sure that HBU must be "no" on page one? The page one question is existing residential for house and the 2 lots, so unless the house has such little contribution it should be torn down for 2 vacant sites, how is the existing residential use ( for the house and 2 lots) a no?

We already covered analyzing and disclosing the HBU of excess lot as a vacant site and its interim use as value in use when encumbered with house (if market indicates it )

 

[J Grant]

Like you've been told numerous times, please consider taking a HBU class. Is the highest and best use of the subject property as improved the present use? Well lets see, our subject is (2) parcels, one is built out, the other is not. We know the second lot can be built out and that would bring a higher value to that real estate, so the answer is NO...duh The HBU would be to keep them seperate and build out the unimproved land. It's so basic it's ridiculous... But to someone who obviously missed some critical concepts early on it must be challenging to have a method that contradicts what a homeowner or lender wants you to do....

Here you are again, instead of bolstering your argument with anything from USPAP ,(and your above makes non sense) majority of your post consists of a blustering rant .

 

[Econobot]

Econobot,
Ok, since you love to operate under false pretences let me break this down to an elementary level...

Can you EVER make a post without personal histrionics such as operating under false pretenses and elementary level? Stick to the topic get off the personalities ( if you are capable of it )

In valuing (2) parcels together (one SFR and one vacant lot) you check "yes" that the current use is the highest and best? Which in this case would be a vacant, buildable lot next to a seperate parcel with a residence. If you're checking the "yes" box valuing the (2) together aren't you lying or misleading?

No, how is it lying or misleading? The HBU question page one is yes no for improved - the MV opinion is for the house and lot conveyed together, so unless the house has no more contirbutory value and HBU is demolish the house for 2 vacant sites, the house if continues to contribute means existing use is as is residential, W'e covered countless time an additional analysis of the vacant lot inlcuding its stand alone HB should be included.

If the 2nd lot is excess land, it's HBU would not be whatever you claim to be "value in use".

The 2nd lot of excess land can have HBU as buildable site alone, but when conveyed along with improvement it is an interim value in use as long as it remains encumbered.

The HBU of the additional lot is to build an SFR is it not?? This is the problem, the HBU analysis sends the "value in use" method into the trash can when it's excess land. This must be why everyone I've spoke with on this subject laughs and says Fannie sent out bad advice and wait for the correction. Where are the other appraisers ignoring HBU and doing "value in use"????

See above -

No, I can't, I've seen too may of your posts as the "top poster" you are giving half baked or straight up WRONG information. I don't appreciate your input and frankly wish someone would take away your "Post Reply" button for awhile. Please don't pretend you haven't been spamming my threads for months...you have. I've stated numerous times people like you who take over threads and seek to inundate the topic with your personal opinion need to be reigned in. This forum isn't yours and frankly you should respect that and allow others to comment. Every thread you comment on loses the focus and it becomes JGrant vs the forum. Take a break for crying out loud. After all, are you a USPAP instructor? SRA? MAI?? Do you have anything in your background that seperates you from every other CR on this site?? I don't believe so, but you feel compelled to blasting your opinion in the face of more experienced credentialed folks who often tell you your wrong. Just accept it and move on, being a top poster doesn't make you an expert.

 

[J Grant]

You still fail to understand, even though I stated it numerous times, that top poster only refers to numerical count of posts in a month. And frankly I wish they would drop it as a category. I am done with you, life is too short, I will put you on ignore and suggest you do the same with me.

 

[Econobot]

Andrei, are you sure that HBU must be "no" on page one? The page one question is existing residential for house and the 2 lots, so unless the house has such little contribution it should be torn down for 2 vacant sites, how is the existing residential use ( for the house and 2 lots) a no?

We already covered analyzing and disclosing the HBU of excess lot as a vacant site and its interim use as value in use when encumbered with house (if market indicates it )

Thanks for proving my point about a potential lack of education HBU and further continuing to promote WRONG information. If the 2nd parcel can be built out it's pretty damn obvious it's HBU is not to sit vacant as the owner's personal park or barrier or whatever. I get a really strong feeling that you care more about homeowner/borrower motives than you understand basic appraisal concepts.

 

[J Grant]

Thanks for proving my point about a potential lack of education HBU and further continuing to promote WRONG information. If the 2nd parcel can be built out it's pretty damn obvious it's HBU is not to sit vacant as the owner's personal park or barrier or whatever. I get a really strong feeling that you care more about homeowner/borrower motives than you understand basic appraisal concepts.

your arrogance is astonishing Said a zillion times HBU as vacant is build able lot as a lot, and IF MARKET INDICATES it can also have an interim use as hold till later appreciation/hold to build/ keep vacant at present time ( value in use ).

Has it occurred to you to ask why, if market is so hot to purchase for max $ the excess lot today, why it is still sitting vacant and not listed for sale ? Why is it being conveyed and mortgaged with a house? Why is not the owner seizing the market moment and selling it instead to the horde of investors lining up to buy it ?

 

[Econobot]

You still fail to understand, even though I stated it numerous times, that top poster only refers to numerical count of posts in a month. And frankly I wish they would drop it as a category. I am done with you, life is too short, I will put you on ignore and suggest you do the same with me.

Thanks for the clarification, everyone knows what "top poster" means. What you fail to grasp is that you are not an expert and far from one. You don't have any credentials that could place you anywhere close to anything other than a basic CR.... So please, just consider NOT REPLYING to every thread. It almost seems like this is your forum and it's very aggravating to someone like myself who wants input from peerS, not JGrant. Just give it a rest, you've become the "top poster" by beating dead horses and regurgitating your position over and over. Good for you but bad for a forum where professionals are seeking input. I appreciate your input just as much as anyone else but everyone else gives room for others. Your top poster status proves that you don't respect other opinions and simply want to overload the thread with stupid rebuttals like questioning Andrei on the HBU check box. If you'd like to present some credentials as a USPAP instructor or otherwise please do so, until then just stop, please.

 

[Econobot]

your arrogance is astonishing , Said a zillion times ?HBU as vacant is build able lot and IF MARKET INDICATES it can also have an interim use as hold till build ( value in use ). Has it occurred to you to ask why, if market is so hot to purchase for max $ the excess lot today, why it is still sitting vacant and not listed for sale ? Why is it being conveyed and mortgaged with a house, instead of owner seizing the market moment and selling it instead to the eager builders lining up to buy it ?

OMG, wow, are you seriously ignorant enough to claim that because a market participant didn't ACT in the HBU that it's not the HBU?!?!? This is right up there with an agent telling me, "the borrowers are willing to pay zzz for this property", insinuating that the property is worth zzz. Who cares what a single market participant is doing, wants to, or has done. Why do you show up to a house with peeling paint and rotting wood?? Don't the owners know that not performing maintenance will cause the asset to deteriorate and thus depreciate faster? You're clinging to very weak logic which can be explained by your lack of understanding HBU and constant addiction to owner/borrower motives and lender needs.

 

[CANative]

Referring to an unimproved tract of excess land as "value in use" cuts across the grain.

 

[J Grant]

OMG, wow, are you seriously ignorant enough to claim that because a market participant didn't ACT in the HBU that it's not the HBU?!?!? This is right up there with an agent telling me, "the borrowers are willing to pay zzz for this property", insinuating that the property is worth zzz. Who cares what a single market participant is doing, wants to, or has done. Why do you show up to a house with peeling paint and rotting wood?? Don't the owners know that not performing maintenance will cause the asset to deteriorate and thus depreciate faster? You're clinging to very weak logic which can be explained by your lack of understanding HBU and constant addiction to owner/borrower motives and lender needs.

When majority of well informed owners/sellers act in a pattern that is market speaking and the market determines HBU - if the market was so hot for build able lots it would be doubtful any would be conveyed with a house instead of selling the lot alone, including a subject.

You are so over the top histrionic, addiction to owner borrower motives you should write for a soap opera ! Again, are you capable of writing one post, even one, that sticks to the topic and does not deliver a lecture or personal allegation ? Have not seen it yet