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

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Market value is the most probable price for the typical buyer/seller and it is baked in to the sales analysis. If a lender want to accept the HBU checked NO then who are you to argue?


Which box? We've already agreed that HBU should be checked NO in most cases.
I do not agree checking HBU no would be the solution , if appraiser believes that then decline assignment.
the HBU opinion is for the appraisal page one is for house and 2 parcels together
 

Andrei Fin

Junior Member
Joined
Aug 30, 2017
Professional Status
Certified Residential Appraiser
State
California
Why would you decline the assignment? There is a reason lenders do not want to accept HBU=NO. When the two parcels are under one loan that reason is nullified.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Why would you decline the assignment? There is a reason lenders do not want to accept HBU=NO. When the two parcels are under one loan that reason is nullified.
If I do not believe it can be appraised for a MV opinion in its current existing use as the HBU ( which is what page one asks, not HBU site as vacant which is a different step) It amounts to a decline, I'd decline the assignment rather than accept it and mark "no" on page one . If the house contributes so little to the two sites for example that both sites should be vacant, that would be a HBU as no..
 

leelansford

Thread Starter
Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Another lecture about how others need to learn - -if we removed the condescending lectures the thread would shrink by 2/3. If I was hogging the thread, apologies for that, but I was attempting to address the issues . In fairness Lee did address the issue -sometimes ) The path to look smart on this board is never offer an opinion how to solve the actual appraisal problem of a topic, instead make snide remarks.

Where is Stone's offering of how he would approach this appraisal?

To plow the same ground over and over is a waste of time for those of us who are doing the plowing. The seeds planted after the first plowing either take root or they do not. Perhaps the coming "clarification" from Fannie will help, but, maybe not :).
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
What blows my mind about this discussion is "the customer is always right" mentality. If a customer asked me to appraise a beater as if was in remodeled condition but to call that the as is value then nobody here would have any qualms about saying "I'm not doing that".
 

leelansford

Thread Starter
Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
What blows my mind about this discussion is "the customer is always right" mentality. If a customer asked me to appraise a beater as if was in remodeled condition but to call that the as is value then nobody here would have any qualms about saying "I'm not doing that".
You have the 'old' way of thinking and need to get into the 'new' way of doing things! :)
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
What blows my mind about this discussion is "the customer is always right" mentality. If a customer asked me to appraise a beater as if was in remodeled condition but to call that the as is value then nobody here would have any qualms about saying "I'm not doing that".
Where does the assumption /accusation the customer is always right come from ? Just because one believes the fannie guidance re the contribution of the lot to MV might apply ( at least in some assignments )

The above example is a different thing. If a client asked to appraise a beater as if remodeled that is lying and misleading about the property condition. This does not involve lying or misleading about what the property consists of. We disclose there is an improvement being conveyed with an adjacent lot and that lot is excess land, and has its own HBU when it is a severed lot alone.
 

Andrei Fin

Junior Member
Joined
Aug 30, 2017
Professional Status
Certified Residential Appraiser
State
California
It's not the customer is always right, but rather- while the appraiser is ultimately responsible for the scope of work, the client drives many of the decisions (identify the problem to be solved). We do not perform appraisals in a vacuum for the ASB.

USPAP FAQ:

What input does the client have to the scope of work decision?
Client input is part of the appraisal process. Communication with the client is required to establish most of the information necessary for problem identification and scope of work determination.

Is a scope of work specified by the client acceptable?
It is if that scope of work allows the appraiser to develop credible assignment results. If the scope of work specified by the client does not allow the development of credible assignment results, the appraiser needs to discuss changing the scope of work or withdraw from the assignment.

And that's where we disagree.
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
The difference is I spent 15 years teaching the subject and can claim competence with what "intended user" does and doesn't mean in a SOW decision. It means something but it doesn't mean everything. The user can ask the question, but the appraiser decides how they're going to answer that question - not the user.
 
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