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

[George Hatch]

The irony in the example you cited is that it's way faster/easier for me to support my opinion of the mv of the additional parcel than it is for you or any other appraiser to (actually) support it's contributory value to the adjacent SFR. (3) or (4) 1-liners in the Site Valuation section of the CA and a short paragraph to reconcile and I'm done; and nobody can argue with it.

 

[J Grant]

There are worse things than being in disagreement with each other. All we can do is make our case.

The problem is a few refuse to limit their disagreement to appraisal issues, As far as making their case, they make a few generic comments , then spend the rest of the thread throwing personal barb. . It becomes a losing game when one is the target, respond and get embroiled, or ignore it and let their falsehoods stand. .

 

[Andrei Fin]

Do you understand that H&BU is fundamental to Market Value and cannot be separated?

Where is it written that they cannot be separated? Source?

 

[Lee Lansford]

Where is it written that they cannot be separated? Source?

Do you understand that H&BU is integral to Market Value?

 

[Stone]

Do you understand that H&BU is fundamental to Market Value and cannot be separated?

Just wondering.

Are you asking me?

 

[Terrel L. Shields]

That blew up quickly

 

[Lee Lansford]

Are you asking me?

Asking one Andrei Fin.

I know that you understand the concept.

 

[Stone]

Asking one Andrei Fin.

I know that you understand the concept.

Got it. I was confused by the quotes (doesn't take a lot some days...)

 

[Andrei Fin]

Do you understand that H&BU is integral to Market Value?

I agree that it is "integral" but not always identical. The four tests of HBU do not encompass every consideration for the typical market participant. I have provided a clear real world example of this too.

 

[George Hatch]

I agree that it is "integral" but not always identical. The four tests of HBU do not encompass every consideration for the typical market participant. I have provided a clear real world example of this too.

I would say that if I was a broker and had marketed those parcels separately the net would not have been $440k. I would go so far as to suggest that any broker could have marketed that property and netted more than $440k.

There is no 5th test for HBU. A seller can agree to sell for less based on their feels or other non-monetary motivations, but if they were trying to max the value (in terms of cash or equivalency) they wouldn't have sold it at that price. Sure, people are nice sometimes, or uninformed sometimes, but those aren't typical in the market.