2 Parcels sold together

[Lee Lansford]

... So do I Combine or dont combine? Either way I still have to figure in the value as if it were 10 acres since they are both being sold together.

Let's make it easier to explain and understand:

What if the two parcels both had improvements (SFR det.)? Would you "combine" both into one opinion of MV just because they were being sold together? No, of course not.

 

[Noreen]

This appraisal is not for fannie. This is for a purchaser's informational purposes. This is a cash deal. The lots are side by side. The lot without an improvement is buildable and can be sold separately with an improvement or not. It is also deeded separately and assesed separately. The seller is just chosing to sell them together and the purchaser has chosen to buy them together. I have include in the report that the lots are separate and buildable. Just wondering if it would be more proper to leave the improved parcel as one parcel in the report and list the other parcel as being sold together with it or to combine the acreage in the site section and the list both parcel ID numbers in subject section? The site with the improvement is 6 acres and the adjoining site without the improvement is 4 acres, so obviously I would end up with 10 total acres. So do I Combine or dont combine? Either way I still have to figure in the value as if it were 10 acres since they are both being sold together.

So in this specific case, wouldn't you value the site and improvements on a 1004 and the separate site which is buildable in it's own right ( H&B) as a land appraisal. Regardless how they chose to write the purchase & Sales agreement, this is how I would approach this here.

 

[Appraisal Time]

So in this specific case, wouldn't you value the site and improvements on a 1004 and the separate site which is buildable in it's own right ( H&B) as a land appraisal. Regardless how they chose to write the purchase & Sales agreement, this is how I would approach this here.

Why would you use a 1004?

 

[CANative]

She probably just didn't notice that you posted the assignment was not for a lender.

 

[Noreen]

the RMPF1004 ( nonlending ) and land appraisal.

 

[razorhaw]

Agree (except you can include both appraisals in the same report if you want to or if the client wants you to.)

I have a similar situation, but mine is a refi. I was going to use a 1004 and a land. How would I combine those two appraisals into one report?

Thanks!

 

[CANative]

Add a comment addendum, a generic sales grid and a generic photo grid for the subject lot and lot comps.

Fannie doesn't securitize land so on the 1004 just report the appraisal of the improved lot. For the lender put the value of the land in the comment addendum. There's lots of things you might miss if you don't do narrative work regularly so if you're more comfortable just add a generic land appraisal report form. It should be in your software suite.

Make sure you explain that this is a separate value and caution the client they shouldn't sum the two value opinions.

You should discuss this with your client in advance to see if they're on board with this.

 

[razorhaw]

Agree (except you can include both appraisals in the same report if you want to or if the client wants you to.)

Add a comment addendum, a generic sales grid and a generic photo grid for the subject lot and lot comps.

Fannie doesn't securitize land so on the 1004 just report the appraisal of the improved lot. For the lender put the value of the land in the comment addendum. There's lots of things you might miss if you don't do narrative work regularly so if you're more comfortable just add a generic land appraisal report form. It should be in your software suite.

Make sure you explain that this is a separate value and caution the client they shouldn't sum the two value opinions.

You should discuss this with your client in advance to see if they're on board with this.

I will contact them on Tuesday to see if they will accept one combined report. Thank you for explaining!

 

[Terrel L. Shields]

Would you "combine" both into one opinion of MV just because they were being sold together? No, of course not.

Why not? I've appraised a lot of comps with 2 or more homes on it. Got a farm to do and it has 2 houses and 5 barns on 2 parcels. It's all one ranch.

 

[Lee Lansford]

Why not? I've appraised a lot of comps with 2 or more homes on it. Got a farm to do and it has 2 houses and 5 barns on 2 parcels. It's all one ranch.

Terrel, if the assignment is for residential lending and a loan headed to the secondary market, "it" is not one entity. There are two entities with two separate H&B Uses.