2 lots in one appraisal? Please help.

[J Grant]

pasted from post 14-Both parcels will be encumbered by a first lien, prohibiting the separation and sale of the additional parcel(s) without the lienholder’s approval.
Therefore it is surplus land which cannot be developed separately from the property.

Putting two divisible lots, where one is excess land, under one first lien ( a mortgage encumbering both ) does NOT make the second lot into surplus land!!!

Surplus land means the additional land can not be separated from the main parcel, either for zoning reasons and/or because the configuration makes the extra land not buildable, not able to be serviced by a road and utilities.

When two separate lots, usually with two Tax ID numbers, are encumbered by one mortgage, the second excess lot can still be sold, and it gets released from the mortgage on sale - either the first mortgage is paid off or changed to reflect a new value or however, it is handled.

 

[Carnivore]

This topic has been discussed numerous times, So what! Around our Country each state and even Counties do things differently, yet they are very similar.

In the OP situation and valuation solution would be different in my area of operation. I have at several one neighborhoods in Charlotte where the total lot sf is almost meaningless. What is important in that Hood(oops) I mean neighborhood, the Front street footage dimensions adjustment are huge. The difference is one site has only on street parking and the more expensive sites front footage 10' feet more allowing for a one car driveway.

My county has adopted this mess. https://library.municode.com/nc/gas...nt_ordinance?nodeId=UNDEOR_CH6ZODI_S6.2.1REDI

The Above does say minimum lot sizes per SFR Zoning and then sometimes they don't. Especially outside Municipal boundaries assuming the land/site are not inside the one mile extraterritorial jurisdiction Area.

Additionally sometimes they merge two or more lots/sites from the deed into one Parcel Number or there are two or more sites on the Deed and have two or more Parcel numbers. Go Figure.

I just finished my CE requirement for license renewal. One 7 Course from Mckissock Land & Site Valuation. This is an Excellent Refresher Course!

 

[Terrel L. Shields]

I later got the assessor to put it on one APN.

In my home state, the assessor organizes parcels by section-township-range. So if you own a tract that is in two sections, you will have 2 parcels. When I inherited 40 acres adjacent to my own 40, I asked the assessor to merge the two and they did because both 40s were in the same section. The parcel is one economic unit in either case.

 

[Basically Rectangular]

there have been many threads and posts on this exact thing recently see if you can find them. People are burned out answering the same question over and over - see if you can search recent posts they will turn up

Someone is looking for help.
If you are burnt out on this, simply don't reply.

The best thing to do is explain everything to your client. I have done that in the past with multiple parcel purchases and they have provided me with the proper guidance.

I am assuming that this is a separate lot, in which case it should be excess land. If not already a separate lot, it still could be excess, but you would need to determine that based on the HBU of the land.

Excess land is not needed to support the existing use, may be sold separately, and is valued separately.
Surplus land is not needed to support the existing use but cannot be separated from the property and sold off.

You need to make the call if this is surplus, excess, or neither.

 

[J Grant]

Someone is looking for help.
If you are burnt out on this, simply don't reply.

The best thing to do is explain everything to your client. I have done that in the past with multiple parcel purchases and they have provided me with the proper guidance.

I am assuming that this is a separate lot, in which case it should be excess land. If not already a separate lot, it still could be excess, but you would need to determine that based on the HBU of the land.

Excess land is not needed to support the existing use, may be sold separately, and is valued separately.
Surplus land is not needed to support the existing use but cannot be separated from the property and sold off.

You need to make the call if this is surplus, excess, or neither.

I told the OP to look up recent posts on it, That was helpful. I also posted #21 help

 

[Jerry Bone Jr]

Putting two divisible lots, where one is excess land, under one first lien ( a mortgage encumbering both ) does NOT make the second lot into surplus land!!!

Appraisal theory is in agreement with you. Yet FannieMae clearly says differently.

 

[J Grant]

Appraisal theory is in agreement with you. Yet FannieMae clearly says differently.

Fannie does not say differently. They reference that for finance they accept a mortgage that will encumber two lots ( one can is excess land) under one lien,

They do not state doing so makes it into a single lot of surplus land, it remains a lot plus a house (an improvement on one of the lots, the two are on a blanket mortgage now.

Imo the weakness in the fannie bulletin is their HBU guidance.

 

[sputnam]

Why is this even a thread? Your assignment is whatever it is. Do it. If you are unclear about which property is to be appraised, have further discussion with your Client. Once you've properly identified the property to be appraised, the intended use, intended user, type of value, etc... then you can decide on the Scope of Work necessary to provide credible assignment results. Those steps that are laid out in the flow chart that's part of AO-22 aren't there just because someone liked to make flow charts. It's a visualization of SR 1-2. Those steps are required by USPAP but, they are also a practical method to getting the assignment completed.

 

[Carnivore]

FHA as opposed to Conventional has it's own twist. You are to exclude any 2nd legally identified separate parcel. That makes it much easier. House and the Lot it is sitting on.

 

[huntercharlie]

Apns are tax ids. Many reasons. An apn is only used for tax purposes.



You could be split between cities or counties, you could have a large portion of the lot as non buildable wetlands which is taxed differently. You could be on a school district line etc.

You can have multiple apns for one lot, multiple lots with one apn.

The legal description provides what we generally refer to as a “lot”. For appraisal purposes you need to determine what the legal description includes. If it includes multiple lots or APNs, this is a big waving flag for a closer look at excess vs surplus land analysis

Exactly. Another scenario would be two neighbors agreeing to a lot line adjustment. If neighbor A agrees to sell 2 acres of their land to neighbor B the two acres acquired by neighbor B would get its own APN for tax purposes but this does NOT create a third legal parcel. Before anyone pipes in with "that just created another third legal parcel" it does not...the majority of minimum lot size requirements in my county are 10 to 160 acres.