2 separate parcels

[Lifequest01]

I'm completing a conventional refinance assignment whereas the borrower owns the adjoining vacant parcel, and the garage was built over the property line and encroaches on the adjoining lot. Both parcels have their own APN and legal description. Never dealt with one like this before. Can anyone shed some light on this? Thank you!

 

[alebrewer]

The fact that it's conforming makes the analysis MUCH easier, as F/F have determined that - even if there is no encroachment - as the two parcels will be encumbered under one loan, the 2nd lot cannot be excess land (as it could not be sold off separately without breaking the terms of the loan). The fact that the garage encroaches the 2nd lot makes your job MUCH easier as well. Since there is encroachment, the 2nd lot couldn't be sold off separately without dealing with the encroachment issues anyway, making that 2nd lot - at most - surplus land. The way you determine whether it is surplus land, or land needed to support the primary parcel is by looking at the market - is it typical in the subject's market for homes to sell with the combined size of the two lots, or is it atypical?

 

[Tom D]

sale with 2 lots, maybe a larger size lot now. you do it like there is only 1 large lot. but, no clue given by you as to what is typical over there. so at best, a good guess by posters.

 

[Mark K]

With the encroachment the overall site becomes one economic unit, i.e., one large lot. Appraise accordingly.

 

[J Grant]

I'm completing a conventional refinance assignment whereas the borrower owns the adjoining vacant parcel, and the garage was built over the property line and encroaches on the adjoining lot. Both parcels have their own APN and legal description. Never dealt with one like this before. Can anyone shed some light on this? Thank you!

Isf the adjoining parcel excess lot can be sold off - even if it can, if the appraisal is to appraise it as conveying with teh subject, then what is its contributory value ? The cost to remove a garage is usually not that big, and it is worth it to free up the separate lot in the future if it makes sense to sell it off.

Wrt teh current HBU of the second lot - its your appraisal only you can determine that -if it is as is, with the second lot just acting as a larger site then the garage is no problem that it encroaches. Teh second lot sill might be severed in the future and sold but if currently HBU is leaving it be then make the call.

If teh second lot can not be sold separately it is just surplus land then there i snot problem to discuss. wrt the garage.

 

[J Grant]

With the encroachment the overall site becomes one economic unit, i.e., one large lot. Appraise accordingly.

IT functions like one large lot, but the second parcel is still ( I assume ) an excess lot that can be sold off -by removing teh garage. The question is, does it make economic and fair sense to do so? (probable not but we can not know that from afar)

 

[Mark K]

IT functions like one large lot, but the second parcel is still ( I assume ) an excess lot that can be sold off -by removing teh garage. The question is, does it make economic and fair sense to do so? (probable not but we can not know that from afar)

You can extend that logic by analyzing if it would be best to raze both the garage and the dwelling in order to sell both lots but I'm just going on what little info was provided.

 

[Lee Lansford ASA]

I'm completing a conventional refinance assignment whereas the borrower owns the adjoining vacant parcel, and the garage was built over the property line and encroaches on the adjoining lot. Both parcels have their own APN and legal description. Never dealt with one like this before. Can anyone shed some light on this? Thank you!

I'm completing a conventional refinance assignment whereas the borrower owns the adjoining vacant parcel, and the garage was built over the property line and encroaches on the adjoining lot. Both parcels have their own APN and legal description. Never dealt with one like this before. Can anyone shed some light on this? Thank you!

An opinion of MV begins with your analysis of the 4 Tests for H&BU. Tell us the results for each of the 2 parcels. Is the 2nd necessary to the 1st?

That there may be a single mortgage over both parcels or that the two are on one deed is not relevant to the analysis and to the opinion (opinions?) of MV.

So, if you want good answers to the problem in front of you, provide this basic important information. There is no "one size fits all" answer to your question other than "tell us about H&BU analysis".

 

[J Grant]

You can extend that logic by analyzing if it would be best to raze both the garage and the dwelling in order to sell both lots but I'm just going on what little info was provided.

Razing the dwelling wrt HBU might be in play if they are high-value lots and the dwelling contributes little

We are usually given light information -of course, we can not form an opinion from afar, but we can offer suggestions or possibilities.-

 

[George Hatch]

Based on the description, my read of it that the encroachment of the garage poses both physical and legal considerations in the HBU analysis. There will be existing side-setback requirements and depending how what those are the encroachment might could conceivably extend past the garage structure. Or, there might not be enough side setback on the other side of the house to provide another garage or driveway or enough rear yard depth to accommodate a new garage.

The simplest solution would be to just stick with WYSIWYG - the orientation of the structural improvements extend across the lot line. I think that's (probably) how most potential buyers would see it.