- Jan 15, 2002
- Professional Status
- Certified Residential Appraiser
I actually read the Appraisal Buzz, today. It regarded appraising properties on large tracts of land with the hypothetical "only use five acres". I understand the concept and can see its redeeming qualities. However, the lenders never see the same redeeming qualities. Thye usually expect the same value with five acres as they would with 40 acres. When you do put a "subject to" on the appraisal they go ballistic. However, how are we supposed to know if the house three barns, stock tank and workshop can all fit on five acres? If you do put a "subject to" they expect you to change you aprpaisal to "as is" two months later when they produce a survey that has most of the improvements on it. I really think that this "hypothetical" appraisal is going to be manipulated down the road. What do you think?