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Another HBU Issue

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KYLECODY

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Apr 26, 2003
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Certified Residential Appraiser
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Arizona
After reading the latest HBU thread I have more questions than answers and had one just come up today. Seeking opinions..

The current property to appraise has two parcel #s under the same name/address. One is the home and an acre while the other parcel # is for the extra 4 acres(all contiguous) which are used for horse stuff(tack room, mare motel, riding circles, etc).

The only odd thing on this is the one acre parcel the home is on, according to the plat, cuts off roughly 1/5 of the back of the home...

I asked the lender if they wanted me to do the house and one acre using the hypothetical that the entire home was on the original acre or appraise the house and 5 acres...

After a week they came back and said do it to the highest and best use..

So is it as simple as what is worth more the home and one acre parcel or the two parcels combined(5 total) as if vacant to determine HBU?
 

bnmappraisal

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Nov 9, 2011
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State
Florida
So is it as simple as what is worth more the home and one acre parcel or the two parcels combined(5 total) as if vacant to determine HBU?
I would say no ... I don't know your area, etc (obviously) but generally speaking, it's probably not as "simple as it seems"

I just turned down a private assignment from an agent I like working with for similar reasons. Subject is a larger site size for the area and would require a very in depth H&BU analysis. Off the record I would venture to say the H&BU ends up being RES but ... not worth my time to figure out at this point, so I referred them to someone else with more experience and data.

But from you mention, it sounds like you'd have to do a TON of analysis to determine HBU - (as with any property, but this particular one seems a lot more complicated than the "average" SFR)

my advice: charge accordingly (starting with 4 figures - as my above was) or pass on to someone else
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
What was the original assignment? The house and 5 acres including barns ?

What is the zoning? Can the four acre section be divided into four one acre lots? What is min zoning there ...one acre lots, or 5 acre parcels?
 

Michigan CG

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Nov 1, 2006
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Certified General Appraiser
State
Michigan
The only odd thing on this is the one acre parcel the home is on, according to the plat, cuts off roughly 1/5 of the back of the home...

I asked the lender if they wanted me to do the house and one acre using the hypothetical that the entire home was on the original acre or appraise the house and 5 acres...


You are overthinking this. First of all a Hypothetical Condition needs to be CREDIBLE according to USPAP. It is not possible to assume (hypothetically) something that is impossible. The house IS on both parcels and therefore you need to include both, or at least part of both parcels.

If 1/5 of the house is on the second parcel you most likely would have to get rid of another 1/5 of the house to meet setback requirements so then you would have 3/5 of a house. 3/5 of a house is not what is maximally productive to the land.
 
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