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

[Eli]

I did not appraise it, I just used it as a comp,( today ) I disclosed of course that the house sold with adj lot. The lot sizes in this report are all over the place from 14,000 sf to one acre ( my subject lot is 17,000 sf )
There is no HC the 2 are sold together, the two were actually sold together for one price and got conventional financing ( confirmed with agent ) Which means somebody appraised it...and shows that though a small segment of market activity, buyers do purchase these.

Got you. Your subject was one lot. The comp had 2 lots. ok

 

[J Grant]

Got you. Your subject was one lot. The comp had 2 lots. ok

The house with an acre lot only sold for 20k more than the house with 2 lots..the land values make no sense there , thankfully I am not doing a land appraisal just their contributory value - a strange area of lost in time old houses with well water and septic in the middle of built up homes with modern everything. Go figure...(and this is one of the easier assignments working on )

 

[Eli]

The house with an acre lot only sold for 20k more than the house with 2 lots..the land values make no sense there , thankfully I am not doing a land appraisal just their contributory value - a strange area of lost in time old houses with well water and septic in the middle of built up homes with modern everything. Go figure...(and this is one of the easier assignments working on )

Thanks for explaining it. I misread your first scenario. It's early morning. LOL Your eastern time zone aren't you? Your an hour ahead of me.

 

[Lee Lansford]

BOOM! Exactly! This is not all that hard for them to come up with a solution on paper(within their selling guide) It is going to be very difficult for them to implement AND get thousands upon thousands of lenders & internally Underwriters to recognize the change and understand that this is outside the normal box they operate within. Then throw in the task of getting 90,000+ appraisers to understand how to report this particular assignment.

Truth is again; Many lenders/UW's/AMC's/Appraisers will not get or might simply not understand the memo at all.

"True dat!"

 

[Michigan CG]

as if they were one legal lot.

You are ignoring excess land. Look it up in you Dictionary of Real Estate Appraisal.

 

[Lee Lansford]

I find yours disturbing since you were formally on the IL board. Good riddance. I am blessed in NC that the level of superiority complex has been reduced to neutral over the past decade or so. I'd be disturbed if such a nonsensical self proclaimed USPAP expert was on the state board. Thank GOD for term limits. Go get the mystery man....
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Following this and other threads, I see an opportunity for you, JGrant, and Andrei Fin to get together and open a school for teaching ways to blaze new trails in the application of appraisal principles. Good luck as you continue to roll the dice.

 

[J Grant]

You are ignoring excess land. Look it up in you Dictionary of Real Estate Appraisal.

Please stop saying I am ignoring it, and typical snarky to tell me to look it up - What evidence do you have that I am "ignoring " excess land, since repeatedly in posts I discussed the excess land that it is divisible and build able and has its own HBU when separated , how is that ignoring it?

 

[Lee Lansford]

Please stop saying I am ignoring it, and typical snarky to tell me to look it up - What evidence do you have that I am "ignoring " excess land, since repeatedly in posts I discussed the excess land that it is divisible and build able and has its own HBU when separated , how is that ignoring it?

I suspect that he is asserting that the "ignoring" part comes after your acknowledgment of a fact by then failing to properly apply the fact in proper appraisal practice. Just my hunch.

 

[Mr Rex]

It will be addressed in the next USPAP update. If you are still teaching, I'll fly up just so I can see the expression on your face.

 

[ddnma]

That supports the Fannie Mae instructions and contradicts those who say the two components should be valued as if sold separately.

No it does not.