can you appraise part of a parcel

[Stone]

A simple question should be answered simply.

That said...

A deed is not necessary to value a portion of a larger parcel. However, the deed should provide a legal description of the property to be valued. Having that legal description, you can value the property even as part of a larger parcel.

The question of the client's ability to lend on part of a larger parcel can only be answered by the client. Obtaining the client's verification of their understanding of the nature of the property could be considered prudent.

The principles and procedures used in valuing a portion of a larger parcel are no different than valuing the larger parcel in its entirety.

Correct. For a lending assignment, I'd definitely want it in writing that they understand it is part of a larger ownership. But, as an appraisal assignment without regard to the lending aspect, it is no big deal. A deed most certainly is not required, but it is nice to have a good legal description.

 

[CANative]

I'd bail on this assignment. What a bunch of non-sense. How is the client going to write a mortgage on a portion of a lot? There are so many "issues" with this that it's not worth an appraisal fee to even think about it.

 

[Ken B]

I suppose some people are not qualified to appraise the property. Especially that Boyd fella.

 

[Michigan CG]

Correct. For a lending assignment, I'd definitely want it in writing that they understand it is part of a larger ownership. But, as an appraisal assignment without regard to the lending aspect, it is no big deal. A deed most certainly is not required, but it is nice to have a good legal description.

AND what they provide you with in writing goes into the report. Also, I would include a legal in the report that you understand describes what it is you are appraising. make sure you go through the legal to make sure it is correct.

I would also make darn sure you have a copy of the survey in the report also.

 

[Stone]

AND what they provide you with in writing goes into the report. Also, I would include a legal in the report that you understand describes what it is you are appraising. make sure you go through the legal to make sure it is correct.

I would also make darn sure you have a copy of the survey in the report also.

Including their instructions probably is a good idea considering lending rules. My memory of what is or isn't allowed is not that sharp so there may be more concern than I think exists over this.

Including the legal description in the report is a must.

 

[CANative]

I suppose some people are not qualified to appraise the property. Especially that Boyd fella.

I do a lot of appraisals for lenders where only a portion of the lot is being valued. Typically this is when a mortgagor want's a part of the property released from the loan so they can sell it off. The appraisal is completed using a hypothetical condition.

I've never done one for a refinance. And I probably never will. It's not that I can't. It's that I won't.

 

[Sunshine in VA]

If the portion you are appraising is not one separate deed, Fannie Mae considers it an unacceptable appraisal practice to value less than the entire parcel as it would be misrepresenting the physical characteristics.

 

[Ken B]

I suppose I forgot to include a smiley.

 

[Ken B]

Who said it was a GSE deal?

However, per the OP, the subject is a separately deeded parcel of a larger tax parcel. Are you sure that such a parcel would not qualify for GSE financing or that an appraiser could not value the property?

I've never appraised one, so I don't know the answer to the question. Will the GSEs lend on a co-op unit?

 

[CANative]

I don't need no stinkin' smileys.

I'm just saying there are many, many legitimate uses for an opinion of value for a portion of a property. I don't think "refinance" is a legitimate need.