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2 Parcels 1 Deed

bbr711

Thread Starter
Sophomore Member
Joined
Jun 30, 2008
Professional Status
Certified Residential Appraiser
State
Tennessee
I realize this has been a reoccurring topic for eons, and I've read through many of the prior posts regarding similar issues, but I've not found the answer I need...

Any helpful guidance/advice would be greatly appreciated.

I was hired in 2017 to appraise a proposed home that was to be built on 2 adjoining parcels, for a combined 5.03 acres - a fairly common practice in this rural area.

I was hired earlier this month to appraise this same property, with the home now being 100% complete. After submitting the appraisal report on 12/11, the client came back with a revision request on 12/26: "Please contact appraiser and have him remove the excess lot... We are trying to close on Monday, December 30 so we need to expedite this request"

These 2 parcels (the 5.03 acres) are under the same deed. While I've not seen a survey, it appears that the home is built on Lot 1, while Lot 2 (the "excess lot") remains vacant.

To meet the client's request, it would seem the appraisal would need to be written subject to legal separation of the two parcels - or am I mistaken?
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
I realize this has been a reoccurring topic for eons, and I've read through many of the prior posts regarding similar issues, but I've not found the answer I need...

Any helpful guidance/advice would be greatly appreciated.

I was hired in 2017 to appraise a proposed home that was to be built on 2 adjoining parcels, for a combined 5.03 acres - a fairly common practice in this rural area.

I was hired earlier this month to appraise this same property, with the home now being 100% complete. After submitting the appraisal report on 12/11, the client came back with a revision request on 12/26: "Please contact appraiser and have him remove the excess lot... We are trying to close on Monday, December 30 so we need to expedite this request"

These 2 parcels (the 5.03 acres) are under the same deed. While I've not seen a survey, it appears that the home is built on Lot 1, while Lot 2 (the "excess lot") remains vacant.

To meet the client's request, it would seem the appraisal would need to be written subject to legal separation of the two parcels - or am I mistaken?
This, as you seem to recognize, is a H&BU issue. I take it that at that in 2017 you concluded that the H&BU of the vacant parcel at that time was as additional "green" space for the improved parcel...yes?

I see your comment relative to your 2017 appraisal RE: the combination of the 2: "a fairly common practice in this rural area".

To the question from the lender to appraise the improved parcel on its lonesome, is there any reason (e.g., legal? zoning? site-size for well & septic?) why such would not be appropriate?
 

Mark K

Senior Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
These are two separate, platted lots that were conveyed on one deed. No problem. No need to have them separated. The lender can encumber one or both of the lots as they see fit.

Revise you appraisal as necessary to reflect any HBU change or value reduction (if that's what you're doing) and let the lender and title company worry about the deed.
 
Last edited:

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
I realize this has been a reoccurring topic for eons, and I've read through many of the prior posts regarding similar issues, but I've not found the answer I need...

Any helpful guidance/advice would be greatly appreciated.

I was hired in 2017 to appraise a proposed home that was to be built on 2 adjoining parcels, for a combined 5.03 acres - a fairly common practice in this rural area.

I was hired earlier this month to appraise this same property, with the home now being 100% complete. After submitting the appraisal report on 12/11, the client came back with a revision request on 12/26: "Please contact appraiser and have him remove the excess lot... We are trying to close on Monday, December 30 so we need to expedite this request"

These 2 parcels (the 5.03 acres) are under the same deed. While I've not seen a survey, it appears that the home is built on Lot 1, while Lot 2 (the "excess lot") remains vacant.

To meet the client's request, it would seem the appraisal would need to be written subject to legal separation of the two parcels - or am I mistaken?
IMO;
What is the zoning requirement for a building lot ?
Are they legally separate by approval ?
A review of the filed survey via zoning approval would appear to offer support for; Lot 1 and Lot 2 as Legally Permitted or not ?
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I realize this has been a reoccurring topic for eons, and I've read through many of the prior posts regarding similar issues, but I've not found the answer I need...Any helpful guidance/advice would be greatly appreciated.
I was hired in 2017 to appraise a proposed home that was to be built on 2 adjoining parcels, for a combined 5.03 acres - a fairly common practice in this rural area.
I was hired earlier this month to appraise this same property, with the home now being 100% complete. After submitting the appraisal report on 12/11, the client came back with a revision request on 12/26: "Please contact appraiser and have him remove the excess lot... We are trying to close on Monday, December 30 so we need to expedite this request"
These 2 parcels (the 5.03 acres) are under the same deed. While I've not seen a survey, it appears that the home is built on Lot 1, while Lot 2 (the "excess lot") remains vacant.
To meet the client's request, it would seem the appraisal would need to be written subject to legal separation of the two parcels - or am I mistaken?
How do you "remove" the excess lot- or ..does the client mean "remove your verbiage re one of the lots is excess land" ? - you can not do that if contrary to fact .

Is the improvement on only one of the lots with the other lot vacant? Or is the improvement built across both lots? ( the latter would not make it financially feasible /possible to build )

Fannie (subject of heated debate) lends on a house which has adjoining lot of excess land- with reference in appraisal that excess lot as having value in use for the being encumbered along with the house under one mortgage ....Being on same deed does not change anything, it just means the two parcels are recorded on same deed.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
My question is if they are both on 1 Deed how do you suddenly remove or pretend one no longer exists ? Also when the original appraisal was completed in 2018 was the 5 acres valued as a whole ? Do 5 acre parcels in your market area sell for more than say 2.5 acre parcels ? Were your original comparables also located on 5 acre or larger parcels ? and finally do you know exactly what size the so called extra parcel is, where its boundary lines are and is there any thing encumbering or that is located on the adjoining lot , like septic tanks, wells, easements to the main parcel ?

To Lender:
1- The removal of the adjoining parcel may result in a lower value than what was done on 2018 when the full 5 acres was appraised as a whole.

2-In order to know for sure where boundary lines , easements etc are located you may need a Survey and also a Title Report .

3- See what lender/client says after you tell them it may result in a lower value ?
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
Agree with Glenn Walker. Very much.

Also, tell them to provide a current legal description (a GSE requirement) of the property they want appraised.

I would charge for a new appraisal at full fee.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
Deeds are merely a way to transfer property rights. One deed can have 100 parcels on it. Deeds are a legal issue.
Michigan agree but as you remove each separate parcel it becomes a value issue. Me tends to think 5 acres is worth more than 2.5 acres and the value is the real issue. It could be minimal or it could be substantial but normally surplus land is better staying with the mother ship because with 5 acres I have a mini-ranch but with 2.5 acres I have a oversized back yard. When owners want to do this its normally because the owners believe the adjoining parcel is worth money and they plan on selling or developing it but suddenly they also want the property to appraise for the same value it had when it had twice the amount of land . Also just last year they wanted the entire 5 acres appraised as one package and now a year later they suddenly they want it not included ? The extra 2.5 acres even if it was surpluse land is worth something and so the owners/client need to be aware that it's a new report and a new value and a new H & B use test will have to be applied.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
My question is if they are both on 1 Deed how do you suddenly remove or pretend one no longer exists ?
Me too... Looks like a partial estate to me. I would put the deed in and say the estate is a partial estate and the deed covers additional land. Then I'd address the impact upon value (none? some?) of such a division.
 
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