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

[J Grant]

Now the thread is truly deteriorating...becoming silly !-were some good discussions and points made

 

[alebrewer]

Now the thread is truly deteriorating...becoming silly !

Now its deteriorating... ok. I'll not post on this thread again. Just welcoming folks back to threads they started...

 

[J Grant]

Now its deteriorating... ok. I'll not post on this thread again. Just welcoming folks back to threads they started...

Okay I will take it back , post away! I

 

[djd09]

Explained several times, the box HBU of the property would be existing residential, since the house continues to contribute to its site, and there is no reason to demolish house to make its site vacant.

don't drag me back into this mess. again, fannie has many 'guidelines' that counterdict appraisal theory and practice. multiple parcels is the least of any concern. i agree if they want to buy it, and understand the situation, what is the big deal? disclose and disclaim.

 

[andrew81]

nevermind

 

[Carnivore]

I lay the reporting controversy at the feet of the form designers. If the GSE forms - and virtually all of their derivatives - had a HBU section that was similar to the one the AI forms used we wouldn't be having this discussion and appraisers wouldn't be getting that nagging suspicion that no matter what they did they were still subject to someone telling them they did it wrong.

I've never associated with the AI in any way, but I don't mind saying that the GSE forms are what you get when the bankers design a form and the AI form is what you get when a really competent appraiser designs a form.

Get off my lawn.

That really is the problem. It is the form design and the inflexibility built into it. You said once something to that effect long ago; 'Our reports should read like a Book.' Books have footnote's. FNMA Report is a small(not a lot of pages) book with ten fold of book notes and exhibits.

Awhile back I mentioned here that I was putting all my comments, exhibits, license, E&O, 1004mc, photo page etc at the front of the report. Someone ask me how that was working out. My response; I am not getting any stips! I reasoned the lack of Stips was because i was forcing them to at least scroll past everything before they got to Page one of the URAR. Well this worked for a good while....then out f Nowhere I get this angry(tone) STIP; "Put the report in its proper order!!!!" So i did that to shut Checker Dude Up! Funny thing was they never told me what the proper order was! I guessed that it had something to do with their pre-designed checklist.

Sometimes I get hard headed and not just take a hard stand but push back. Really the Answer is to have an index page(as opposed to a Contents Page) at the front instead of the back of the book The reason I say this is because its the little nit picky crap that Checker Dude/Dudette uses as a Bludgeon and elevates then up the ladder of importance within the AMC, or so they think. It doesn't really do that, but in their minds it does, You could say they are attempting to place themselves in a less vulnerable position when Lay-Off or Short Time invariably comes around.

 

[glenn walker]

This threads name has been changed to Hybrids and USPAP compatibility- VOTE - YES or NO : ) LOL

 

[Econobot]

That brings up the point ( expressed in a prior thread by a few...) if the immediate, or present as of eff date for the vacant lot was so maximally productive to sell on this date, why isn't the lot in contract, or have a for sale sign on it, with an offer?

I see in my market area individual vacant lot sit there for years. Only exception is " hot" / changing areas - otherwise, many market participants elect to hold the lots for future appreciation - ( value in use), knowing it has potential to be developed.

You have got to be kidding me, are you seriously claiming HBU is correlated to what an owner would do? This is the hallmark of an incompetent appraiser's HBU analysis. Not every owner is concerned with maximizing financial productivity. I'm sick of reading your I'll conceived theory and you're a top poster of bad information just like this Fannie Mae guidance, which will be rectified soon. Please understand USPAP and what the form is designed for, value in use is not market value. What is your job per USPAP? According to you it's to turn on forms so someone can get a loan. Good luck with that.

 

[Econobot]

That is what you are doing !

We as appraisers are supposed to appraise to the market if the owner of this adjacent lot leaves it vacant as of effective appraisal date, why isn't owner seizing the amazing HBU to sell today for development ? Maybe developers are not lining up to buy it...lol - or at least not at a good price. If area was hot and lots selling, we'd see that happening. But it may not be the case. I see vacant lots begging for a buyer in areas, even at a low price, they have owner will finance ads to get rid of it.

Owner may believe better to hold a lot vacant a few more years. If there are other vacant lots in area sitting there , the market is telling us something. We are not supposed to ignore that.

HBU analysis does not involve a single owner's actions, please take a HBU course. I'm amazed you've been an appraiser this long yet exhibit zero understanding of your most important role. Software can fill out forms, educated humans are needed fo analyze a market.

 

[J Grant]

You have got to be kidding me, are you seriously claiming HBU is correlated to what an owner would do? This is the hallmark of an incompetent appraiser's HBU analysis. Not every owner is concerned with maximizing financial productivity. I'm sick of reading your I'll conceived theory and you're a top poster of bad information just like this Fannie Mae guidance, which will be rectified soon. Please understand USPAP and what the form is designed for, value in use is not market value. What is your job per USPAP? According to you it's to turn on forms so someone can get a loan. Good luck with that.

Stop lecturing about USPAP -Top poster here means numerical post count a month, personally I wish they would stop that category.

I never said HBU is what an owner would do. However, HBU is determined by the market, and if majority of owners of vacant lots are letting their lots sit vacant, it indicates they are holding them rather than selling them or building on them at this time. Which speaks to how the market views the lots.

Are you saying we should ignore the market and invent HBU out of thin air?