Bad advice from Fannie--"Multiple Parcels" from Dec. 2019 'Appraiser Update'

[J Grant]

Telling an appraiser to include a value in use is what? They didn't say market value, they said value in use..... it's so obvious its scary how you're completely missing the point

fannie did not say do not appraise MV, it said for loan the second lot purpose is value in use.

I would not accept the assignment if I could not value the second lot to what the market shows it is worth.to

 

[Michigan CG]

Your examples are not the same thing

My examples are EXACTLY the discussion. The two parcels that are a little over 3 acres sold for a combined ~$80,000. The five acres sold for $53,000. It the two 3+ acre parcels were to sell as one they would be worth about $60,000.

NOW..... let us decide that Fred owns both 3+ acre parcels and wants to build on one and keep the other one and he wants a mortgage on BOTH. People like you are going to throw the other parcel in with it and do it WRONG. This is basic appraisal 101.

 

[J Grant]

My examples are EXACTLY the discussion. The two parcels that are a little over 3 acres sold for a combined ~$80,000. The five acres sold for $53,000. It the two 3+ acre parcels were to sell as one they would be worth about $60,000.

NOW..... let us decide that Fred owns both 3+ acre parcels and wants to build on one and keep the other one and he wants a mortgage on BOTH. People like you are going to throw the other parcel in with it and do it WRONG. This is basic appraisal 101.

You STILL dont' get it ! I already said I recognize larger parcels can be worth less than smaller ones.

However , this is not a 2 acre parcel !! It remains two separate legal one acre parcels, one with a house on it, the other one remains a one acre parcel, encumbered under a same mortgage , and can be released from that mortgage /note paid off and still sold as the one acre vacant parcel.

 

[Lee Lansford]

fannie did not say do not appraise MV, it said for loan the second lot purpose is value in use.

I would not accept the assignment if I could not value the second lot to what the market shows it is worth.to

So you agree, where the 2 are not 1 that contrary to what an owner or lender might want the two to be, a single opinion of MV is not available. Just to be certain--we can't combine two opinions of market value into one opinion of MV.

 

[J Grant]

So you agree, where the 2 are not 1 that contrary to what an owner or lender might want the two to be, a single opinion of MV is not available. Just to be certain--we can't combine two opinions of market value into one opinion of MV.

Why not, if applicable? Where is there a "rule" against it, if market indicates it?
If the contributory value of the adjacent lot is the same as its value in the market as a salable lot (market value) why can not its contributory value to the whole reflect that?

 

[Lee Lansford]

You really don't understand this.

 

[J Grant]

You really don't understand this.

Lol, you dont' understand this. How can you fail to understand that two one acre parcels are not being combined into one 2 acre parcel? They remain two 1 acre parcels encumbered under a single mortgage. Apparently, fannie understands it enough to UW loans on it.

 

[Lee Lansford]

Focus: Where there are 2 parcels and each having a H&BU separate--Got that?--from the other, a competent appraiser will not combine the 2 market values to arrive at a single opinion of value (which would not be market value). If...if..the H&BU of the vacant parcel is as additional "green" space for the improved parcel, that's a conclusion different from that of each being separate one from the other.

What's so difficult to understand about this?

 

[gregb]

https://eweb.irwaonline.org/eweb/upload/web_mar_apr12_AssemblingParcels.pdf

 

[J Grant]

Each assemblage example has to be analyzed on a case by case basis, and wrt to one of the parcels in an assemblage is that parcel able to remain subdivideable and be sold off ?

The day an individual parcel is put on the market for sale, why would a buyer care if it needs to be released from a blanket mortgage? As long as that can be done and buyer gets clear title imo it would not affect buyer and therefore the MV of that parcel.