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

[djd09]

business as usual.

 

[Lee Lansford]

business as usual.

Actually, Fannie informs us that there is now a 5th test for H&BU. So, something altogether new .

 

[andrew81]

Actually, Fannie informs us that there is now a 5th test for H&BU. So, something altogether new .

(1) legally permissible
(2) physically possible
(3) financially feasible
(4) most profitable and
(5) fannie consentable

 

[djd09]

Actually, Fannie informs us that there is now a 5th test for H&BU. So, something altogether new .

fannie also back loans from lenders that did not verify any financials of the borrower.

if you do not like the rules, don't appraise multi parcels.

 

[Carnivore]

I read it...and I'll re-read when I have a moment to spare.

In brief, I think that the writing is 'fuzzy' at best and not something that we would expect to find in a "Fundamentals of Real Estate Appraisal" text .

They did Fuzzy it up, so as to dodge the actual Question They did not say anything we did not already know. The regurgitates whats in every Real Estate Appraising Book out there. They talked about a SFR with House one lot and then basically a SFR straddling two Lots but.... They totally Dodged the Third Situation.

Nice Dodge FNMA, only the dumbest of us did not catch what you said, but more importantly what you did not say!

 

[djd09]

of course it was nothing. other wise they would have been gloating for 38 pages.

they do not understand the hierarchy.

 

[Basically Rectangular]

A comparable listing shows a selling price of $958,000 and 28 acres. Tax Records shows this sale is actually two parcels.
Tax records shows a selling price of $792,711 and 5 acres for the parcel with the improvements. Apparently the adjoining lot and was included in the sale.

Is it appropriate to use the combined acreage and combined sales prices as one comparable?

 

[CANative]

I'm on the other screen writing an appraisal right now. Three assessor #'s. One actual lot of record. It took the stupid lender 10 days to come up with the deeds from 1976 showing all of the BLA's that resulted in the three assessor lots. Now they're giving me grief for being late.

Is it appropriate to use the combined acreage and combined sales prices as one comparable?

If there are actually two lots, both of which can be independently sold separately, both of which can be developed for the same use, and there is a current market for development lots, then appraise them separately and include both values in the same report. Not combined. Make sure the client understands a developed property might take 30 days to sell and an undeveloped property 180 days to sell. If that's the case.