Curios How To Do This

[Zoe]

The lender has probably not made the loan yet, so you are still bound by confidentiality with the lender. Keep that in mind but you need to talk to the kin and landowner some more as well.

Your basically in an ROV situation.

You will still need to disclose prior engagement on the subject and appraisal services. Okay?

 

[Zoe]

If you had not already turned appraisal in like previous poster saying, it may have been way easier to do.

Too much going on. multiple parcels, kin being involved, client probably not needing all the acreage, borrower not wanting all the land in the mortgage. Too much going on for one assignment.

Sometimes you have to educate your client. That is why you get paid the big bucks?

 

[Terrel L. Shields]

Your basically in an ROV situation.

Not

You will still need to disclose prior engagement on the subject and appraisal services.

Not if he didn't appraise the correct parcel.

The lender has probably not made the loan yet, so you are still bound by confidentiality

Zero to do with the problem

 

[shrubberyvaluation]

Mistake One. Always ask. It will save you time and again.
The report is complicated by involving more than one parcel. valuing the one acre less parcel is just that. Since land generally sells by the acre in large parcels, apply the unit value by the acres being involved. Ignore the one acre's value. Not relevant. So you have 43 acres more or less. Which is worth more the dwelling or the land? Then if land it is a land appraisal with improvements, if the dwelling it is a residential appraisal with excess land.

Yep, I've made the mistake before of not asking. Had one ordered for a new construction condo. Order didn't have the unit number. Oh I'll look at the contract page 1 and geti t. Go out to the property, inspect. Come back look through the contract more and see an addendum where they switched the unit they were buying. So I had to go back. Its best to just ask, that way if its wrong its not on you.

 

[Zoe]

Not

Not if he didn't appraise the correct parcel.

Zero to do with the problem

That is not the appraiser's fault, but should have known since landowner said they didn't want all the land on their mortgage.

Now, that is between landowner and the appraiser's client? Catch me?

 

[Zoe]

You know the lender is more than willing to take 1,000 acres on this home site.

To release 1 acre is not too much to ask. Now, if I were the existing homeowner? I might want to separate some of my land but I don't know how much frontage the 10 acres holds and it would require a survey to get bank to release anymore off the mortgage.

 

[Xavier Hargrove]

I guess the borrower could just quit claim that 1 acre to the kin and the borrower ask the lender to release that 1 acre. If I was the lender, I would consider that. I probably would release the 1 acre on the survey on the mortgage. I would have to record a new mortgage so current owner would have some closing costs involved.

Does that 1 acre impact the other 43 acres?

1 acre comes off the 33 acres. It only has a small impact on the market value of the 33 acres.

 

[Xavier Hargrove]

The lender has probably not made the loan yet, so you are still bound by confidentiality with the lender. Keep that in mind but you need to talk to the kin and landowner some more as well.Your basically in an ROV situation.Youwill still need to disclose prior engagement on the subject and appraisal services. Okay?

Yes, make sense, appreciate it

 

[sputnam]

I recently got an appraisal request to value a property as is then the value of the property minus a proposed land cut of one acre according to a survey to see if it would still support the mortgage amount. This cut of land would be going to the borrower's kin, and no purchase contract was observed. HBU is not affected. The original site is 33.06 acres with a livable manufactured home. The lender ordered the appraisal at address xxxx which was a property that was adjacent to this 33.06 acre. Both parcels are owned by the same borrower. One parcel is 33.06 acres and will be split for their kin to build a house, one parcel has a modular home on it and is 10 acres. There is no zoning observed for both parcels as they are in a rural part of NC.

I figured the lender got the address wrong as the 10-acre plot of land with the modular home doesn't support the 33.06-acre parcel. Nevertheless, I inspected both parcels when I went out, the borrower informed me that the original loan encumbered both parcels which he didn't understand or wanted. I completed the report per engagement "value of the property as is the value of the property minus a proposed land cut of one area. Since the land cut was not coming out of the 10-acre parcel (nor needed to support the mortgage) I did not value it. The lender came back and stated that the address for the application was xxxx and they wanted the value of the parcels together so a total 44.06 acres with two properties on it and a land split from there. Any thoughts?

Doesn't seem particularly confusing to me. Appraise the property. Then appraise the property as if it is one acre less. Write the report or reports. If the Client did not make what they wanted clear... that is, they didn't make it clear that they wanted a bulk value for the combined parcels... then, you have to choose. Do it... or... point out that the Letter of Engagement didn't specify that and offer to do it for an additional fee... or... just decline. If you decline entirely, it's likely you will lose the Client.

 

[Terrel L. Shields]

Doesn't seem particularly confusing to me. Appraise the property. Then appraise the property as if it is one acre less

Your basic "over the fence" valuation. The unit value of a parcel of 33 acres vs 32 acres is the adjustment. Too insignificant to impact the unit value of a tract that size.