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Appraising 2 separate parcels included in the same contract

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
There is nothing wrong with writing an RE contract that includes one site or 100 sites. There is nothing wrong with appraising the RE described in an RE contract. A subject property can be many things. The GSE's and the Gov. Agencies will lend on residential property with more than one lot, under certain, well described, conditions.

There is no one-way to complete an appraisal assignment.

The nonsense is getting thick in this one.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
The nonsense is right. If the H&BU of the "second site" was to sell off separately, then is the current owner acting in their own best interest in not doing so? So many times these H&BU questions come up and always supposedly meet all 4 questions but no one asks how much vacant inventory is available, how long might it take to sale etc. the real questions of economic feasibility.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
This type of assignment is definitely far too complex for a trainee....good luck getting your credential, the sooner the better grasshopper... It proves your skillset...
He is getting a commercial license and from his posts about commercial properties it appears he has a pretty good grasp on appraisal topics.
 

Econobot

Junior Member
Joined
Aug 9, 2019
Professional Status
Certified Residential Appraiser
State
Colorado
He is getting a commercial license and from his posts about commercial properties it appears he has a pretty good grasp on appraisal topics.
Quite a drastic difference between commercial work and residential forms, especially secondary market work....
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
All of the concepts are the same.
Intended use and user issues are different and working within the confines of the GSE's can cause an appraiser who works more in the commercial aspect can run afoul. I've seen it happen.
 

Andrei Fin

Junior Member
Joined
Aug 30, 2017
Professional Status
Certified Residential Appraiser
State
California
Further guidance has been bestowed upon us (latest Fannie Mae newsletter):

"All parcels will be encumbered by a first lien, prohibiting the separation and sale of the additional parcel(s) without the lienholder’s approval, which would result in a new valuation. If the criteria above is not met, contact your lender to discuss next steps.

As an appraiser, you must determine if the additional parcel is excess or surplus land. The main difference is that surplus land cannot be developed separately from the property, while excess land has the potential to be sold separately because it is not needed to serve or support the existing improvements. Excess land is considered “value in use” for the purpose of the appraisal, so the land should be described and its contributory value included in the grid."
 
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