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appraisal subject to an illegal lot split?

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J in Florida

Thread Starter
Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Is it allowable to appraise a lot subject to a lot split that is not allowed by the county?

This guy wants to by a lake lot and split it into 2 but zoning regs won't allow it based on lot size, front footage and total site area. He wants me to appraise it that way anyway.

I don't think I can but what do y'all think?
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
You may under hypothetical condition.

HYPOTHETICAL CONDITION: that which is contrary to what exists but is supposed for the purpose of analysis.

Comment: Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.


Though I would include the definition of hypothetical condition in the report and explain it in several areas (probably on every page). Also include a copy of the county regualtions since this is what is legal currently.

Just my 0.02 cents worth for the time being. Although the USPAP Guru's may or may not agree with me on that one. :evil: :twisted:

Ryan
 
A

Anonymous

Guest
amen

quoting the text directly word for word from USPAP is highly recommended from these quarters as well.
ter
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Just a question: If such a split is not allowed, is there sufficient data to estimate value?
Be sure to cite in your report the exact source of why they cannot split the lot, including names if you talked with a specific individual.
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Ryan, et al ..

I was always instructed that YOU MAY NOT APPRAISE AN ILLEGAL USE!
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Airphoto,

I agree with you prior to the introduction of USPAP's Hypothetical condition that you could not. However, with consideration to the Hypothetical condition you may be able to that since the comment states "assumes condition contrary to known facts about physical, Legal". This is how I read the comment in USPAP 2002. Althoug I am not a USPAP Guru as some are in this forum and will bow to others experince and readings beyond my own. If I'm in error then please let me know. But this is how I am reading USPAP on this issue.

Ryan
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Ryan, et al ..

I was always instructed that YOU MAY NOT APPRAISE AN ILLEGAL USE!

Illegal and hypothetical right now..... client might actually be able to get a variance and make it happen.

I would go ahead including the specific client instructions and everything else said above.
 

J in Florida

Thread Starter
Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Florida
a little more info....

The purchase is of a lot with and older, run down home for demo. The lake is in a suburban location where land sales area generally older homes for demolition and replacement of new gargantuan high quality cribs, so land sales are available; however, none with lot splits or replats. The county says "no way" on the split, even though there are sites on this lake smaller than the proposed 2 lots.

My thought is that even though there are smaller and wierder sites on the lake than the one this guy is looking at creating, if the county says no now, or maybe they say yes at a later date, since the proposed splits would be an illegal use, appraising it "subject to" would be inappropriate.

Am I off base?
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
J,

As stated earlier I would only appraise this property as a hypothetical condition. In other words two seperate appraisals for the seperate sites. Fully disclose in every place possible in bold. To me this is not one appraisal it is two vacant land appraisals. I would personally require a survey before even going on with this so you know exactly what you are appraising. He may say split it down the middle but if the survey comes up with something different your liable. But then again I see no problem with doing two vacant land appraisals based upon a hypothetical condition and disclose disclose disclose disclose.

And as Pam said,
specific client instructions
.

Including as Rsthran said,
Be sure to cite in your report the exact source of why they cannot split the lot, including names if you talked with a specific individual
.

But that is how I think you could handle it.

Ryan
 

George W Dodd

Senior Member
Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
If the client wants the property appraised subject to a hypo condition just clearly state the condition and you should subject the appraisal to this condition occurring.

Don't do an "as is" do it subject to!
 
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