can you appraise part of a parcel

[Michigan CG]

.......Including the legal description in the report is a must.

The REAL legal, from a survey. Not the assessor's abbreviated legal.

 

[Ken B]

The REAL legal, from a survey. Not the assessor's abbreviated legal.

Although it is possible to have a legal description in a survey without a deed, for the OP, the legal description in the survey should reference the deed. A boundary survey would be nothing much more than a graphical representation of the legal description provided in the deed. It may or may not depict easements or other encumberances.

 

[Stone]

The REAL legal, from a survey. Not the assessor's abbreviated legal.

That seemed like a given considering the OP.

Edit to add for clarity - I meant that the legal would come directly from the deed based on the OP, not the assessor. I don't know if a survey is involved or not.

 

[CANative]

If the client intends to mortgage the entire property based on the appraised value of a portion of it there are potential problems that I don't want to be accountable for. I especially don't want to wrangle all HBU issues, legal issues, title issues, zoning issues, etc., etc., etc. I'll bet the OP is getting a standard URAR type fee if not a lowball AMC URAR fee.

 

[Lucien Hamernik]

I just appraised a property on one lot with a contiguous vacant lot and each had their own parcel#. I asked the lender to request the two properties be combined into one parcel# and the assessor did it becasue the lender wanted a mortgage on both. Also, I believe the assessor would separate two legal descriptions into two parcel numbers-at least here in rural NE.

 

[CANative]

How does the assessor's record keeping system turn two economic units into one economic unit?

 

[George Hatch]

Real property appraisers do not appraise "properties" as such; they appraise property rights. One of the requirements of an appraisal is the requirement to identify those property rights and identify *all* of the relevant attributes of the property rights being appraised, including its physical and legal attributes, not just a portion of the attributes that fit into a client's objectives.

The market value of the fee simple interest in a 40-acre parcel described as the subject property in an appraisal is the value of the entire 40 acres. If you're only appraising a 5-acre portion of it then that partial interest is your subject property and should be identified as such all through your appraisal report. Taking into consideration the marketability of that partial interest, of course.

What's the marketability of a partial interest consisting of the house-n-5 portion of a 40 acre parcel if/when that partial interest cannot be legally or feasibly subdivided, and how does that affect the market value of that partial interest? Assuming otherwise similar physical attributes, is a condo or leasehold or life estate property interest in a property as marketable and as valuable as a fee simple interest? Sometimes the answer may be "yes", but usually it's "no".

 

[Couch Potato]

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.

One does need to be able to clearly describe the property being appraised. :new_all_coholic:

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As long as you can describe it, you can appraise it. When one understands things like the history of condominium laws that were passed to standardize the selling of partial interests of certain types, one learns legal separation of a portion of a piece of property is overemphasized by many on this forum. Dividing a property is certainly the simplest way to market a portion of property, but hardly a necessity. Valuing such an interest will depend on the property. Valuing one unit of a duplex is fairly straight forward, as is valuing a portion of vacant land, but valuing something like a master bedroom would be much more complex. (Yes, you can sell a portion of your house separate from the rest, and sometimes it makes sense to do it. No, you don't have to subdivide the property to do it.)

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Beware those who say, "you can't do that" no matter what the topic of conversation. Remember, where there is a will, there is a way. :new_all_coholic:

 

[Stone]

One does need to be able to clearly describe the property being appraised. :new_all_coholic:

As long as you can describe it, you can appraise it. When one understands things like the history of condominium laws that were passed to standardize the selling of partial interests of certain types, one learns legal separation of a portion of a piece of property is overemphasized by many on this forum. Dividing a property is certainly the simplest way to market a portion of property, but hardly a necessity. Valuing such an interest will depend on the property. Valuing one unit of a duplex is fairly straight forward, as is valuing a portion of vacant land, but valuing something like a master bedroom would be much more complex. (Yes, you can sell a portion of your house separate from the rest, and sometimes it makes sense to do it. No, you don't have to subdivide the property to do it.)

Beware those who say, "you can't do that" no matter what the topic of conversation. Remember, where there is a will, there is a way. :new_all_coholic:

I meant it is nice to have a deed because it has a good legal description. I appraise part of a larger property all the time.

 

[jimmyfrank]

This doesn't make sense to me.

A "refi" means refinancing an existing mortgage, but yet the appraiser is being asked to appraise a portion of an existing property. Is the mortgage really on part of an existing property?

Yes David, It does make sense. For example, the borrower may desire a release on the "part" not being appraised. I see it a lot in my area and market.