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appraiser not privy to survey, perc test, septic permit

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Hank Outlaw

Thread Starter
Member
Joined
Feb 17, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Hello,

I can't recall the last time I encountered the following and would appreciate your input:

Single family home situated on one lot with well and septic, property being appraised includes subject and adjoining unimproved lot of equal size, i.e., two 90 x 180 lots, one improved, one not. The owner was not able to provide a survey. The county only has evidence of a septic permit for the lot with the house. I have no info on the unimproved lot. Public sewer is not available. Some lots in this neighborhood will not perc. I am uncertain as to whether the vacant lot will perc.

Question: How to properly address the unimproved lot in the appraisal, i.e., appraiser not privy to a current survey, dept. of environmental health septic permit, etc. with regard to the unimproved lot being suitable for use as a homesite with ? bedrooms / baths.

Extraordinary Assumption - appraisal based upon the ASSUMPTION that the unimproved lot does not perk, and that the value may be different, possibly higher, should further inspections / testing reveal that the unimproved lot will perk (with consideration to the type of septic system required, expense, etc.).

Like I said, I haven't had such a situation that I can recall, so I wanted to pose this to the peers. I'd appreciate any advice.

Thanks,

Hank
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Hank,

are you including two appraisals within one report?

Either way, it is important to just make an addendum stating waht you know and dont know. Please ALWAYS reference addendums Plainly and conspiciously in an area of the report that wont get lost.

Remember, you can not trust ANY lender in todays mortgage enviroment!!!
Be pro-active in your reports to protect yourself from the dishonest and corrupted mortgage industry.
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
What is your SOW and what is the HBU of the property? Is it a legally buildable lot? Are you appraising the whole property or are there going to be two appraisals?

If two appraisals, then the second one can be done subject to .....
 

Hank Outlaw

Thread Starter
Member
Joined
Feb 17, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
One appraisal... FHA. I usually address such issues in SEVERAL areas of the report, or at least refer to such addenda several times. I know what you mean, so I am usually redundant. I just wanted to make sure I'm not missing / omittng something regarding the issue with the vacant lot.

Thanks,

Hank
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
[FONT=Verdana, Geneva, Arial, Helvetica, sans-serif]Chapter 1 Appraisal and Property Requirements Unique Properties: Excess Land, Page 1-17c [/FONT]
[FONT=Verdana, Geneva, Arial, Helvetica, sans-serif]Excess land is defined as that which is larger than what is typical in the neighborhood AND capable of a separate use. Generally, the excess portion can be subdivided and marketed as an individual parcel. However, in small communities and outlying areas, appraisers must use different criteria because the market may accept a wide variance in lot sizes. If the plot contains excess land, the appraiser should describe it but not value it. In this instance, the appraisal is based upon a hypothetical condition. A legal description of the portion being appraised is required. The lender will require that the excess land be excluded from the mortgage security.[/FONT]
 

Greg Bell

Senior Member
Joined
Jul 7, 2006
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Louisiana
Otherwise , split th lot.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
[FONT=Verdana, Geneva, Arial, Helvetica, sans-serif]Chapter 1 Appraisal and Property Requirements Unique Properties: Excess Land, Page 1-17c [/FONT]
[FONT=Verdana, Geneva, Arial, Helvetica, sans-serif]Excess land is defined as that which is larger than what is typical in the neighborhood AND capable of a separate use. Generally, the excess portion can be subdivided and marketed as an individual parcel. However, in small communities and outlying areas, appraisers must use different criteria because the market may accept a wide variance in lot sizes. If the plot contains excess land, the appraiser should describe it but not value it. In this instance, the appraisal is based upon a hypothetical condition. A legal description of the portion being appraised is required. The lender will require that the excess land be excluded from the mortgage security.[/FONT]

That should answer your question.
 

Hank Outlaw

Thread Starter
Member
Joined
Feb 17, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Thanks for the info. I just spoke with someone at HUD who basically looked it up on the internet, copied and pasted the same info and e-mailed it to me! Pardon my laziness, as I did the same thing, but wanted to get insight from my peers.

All the best,

Hank
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
The thought just occurred to me. In MY area, to get a septic permit there has to be adequate land for 100% expansion in case the septic fails. So, maybe this extra lot is needed for that possible expansion. In that case, it could be included in the single report without calling it excess land.
 
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