Excess Land?

[TITAN1]

LOOKING FOR SOME GUIDANCE,OPINIONS ON DOING A 5 ACRE PARCEL WITH A LAVISH 6000 SF HOME IN AN AREA WHERE THE LARGEST LOTS ARE APROX. 15000SF WITH SLIGHTLY SMALLER HOMES. NOTHING SIMILAR TO THE SUBJECT HAS SOLD IN THE LAST 2 TO 3 YEARS AND WHAT HAS SOLD IS 10 TO 15 MILES AWAY IN A COMPLETLY DIFFERENT AND INFERIOR MARKET, MOSTLY AG LAND. SUBJECT IS NOT AG LAND BUT SINGLE FAMILY. I HAVE NEVER DONE AN EXCESS LAND APPRAISAL IF THIS IS THE RIGHT COURSE TO TAKE IN YOUR EXPERIENCED OPINIONS. THIS WILL BE AN FHA HECM BELOW ARE SOME GUIDLINES I FOUND. HOW WOULD YOU FOLKS GO ABOUT DOING THIS APPRAISAL?
ALL OPINIONS WILL BE GREATLY APPRECIATED..... THANKS

8.81. Double Lots and Excess Acreage
Updated 09/26/07
Appraisers must determine the amount of the land that should be
included in the value when a house includes excess acreage. The
appraiser relies on what is typical for the area. There is no specified
upper limit on how much acreage is acceptable; however the
underwriter will make the final determination for additional lots or
properties including more than five acres.
Large properties must meet the following guidelines:
Zoned and used as residential property (no commercial use,
including income-earning farms).
Common for the area (supported by similar and proximate
comparable properties).
Additional lots may only be included if they meet at least one of
these requirements:
Contiguous and included on the legal description
Contiguous and taxed as one parcel
Includes amenities such as septic tank, well, garage, etc. which
contribute to the marketability of the property
Removal of parcel would limit access to public roads
If the property has excess land that does not meet the above
requirements, it cannot be included in the property value. The
borrowers must sign the Excess Land Certification (Form # 159-3).
They will indicate whether they want to encumber the excess land
with the reverse mortgage or deed it off separately. If encumbering
the land, no further action is required. If deeding off the land, a
survey will be necessary and the land must be removed from the
legal description. Land may not be removed if its removal would
limit access to public roads or wells/septic tanks.

 

[Lee Lansford]

So, tell us: What is the minimum lot size under the Subject's zoning status?

 

[TITAN1]

Ru-1 Mb Is The Zoning Modified Single Family 6000 Sf Min.

 

[Geoff Hatcher]

I don;t believe a 6,000 SF site would support a 6,000 square foot home. What does the zoning say about minimum frontage, site size, etc. does is it have public water and sewer or well and septic? If well and septic what are the minimum requirements, any of it located in a Flood Plain, Need a whole lot of information to determine if it is Excess or Surplus land

 

[Geoff Hatcher]

Does you parcel meet one of the requirements addressed in your original questions?

Additional lots may only be included if they meet at least one of
these requirements:
Contiguous and included on the legal description
Contiguous and taxed as one parcel
Includes amenities such as septic tank, well, garage, etc. which

 

[Geoff Hatcher]

Not to be nitpicking, but if you can't determine how to distinqish between Excess and Surplus Land, you may want to pass on this one

 

[TITAN1]

The Zoning Is 6000 Sf Minimum.. It Can Be Anything Aove 6000 Sf.
I T Has Public Water And Sewer And County Records Shows It As One 5.29 Acre Lot With A 6000 Sf House And Pool. The Property Is Located In A Fold Plain.
As Far As Additional Lots Above, Legal Description Shows The Full 5.29 Acres As One. No Additional Lots.
Thanks For The Help

 

[TITAN1]

Jeff The Reason I Visit This Post Is To Try And Learn, If It Comes To Having To Turn An Asignment Down Due To Incompetence In That Particular Field I Will Do So, But That Shouldn't Keep Me From Asking You And Others Questions To Try And Educate Mysely To Possibly Be Competant In The Future For A Particular Assignment.
Thanks For Your Help

 

[Michigan CG]

excess land
In regard to an improved site, the land not needed to serve or support the existing improvement. In regard to a vacant site or a site considered as though vacant, the land not needed to accommodate the site's primary highest and best use. Such land may be separated from the larger site and have its own highest and best use, or it may allow for future expansion of the existing or anticipated improvement. See also surplus land.

surplus land
Land not necessary to support the highest and best use of the existing improvement but, because of physical limitations, building placement, or neighborhood norms, cannot be sold off separately. Such land may or may not contribute positively to value and may or may not accommodate future expansion of an existing or anticipated improvement. See also excess land.

 

[Mr Rex]

Titan, I did not find the info you posted on the HUD site, as the 08 Mortgagee letters are now @ 2008-14. Here is what 4150.2 says about excess land:

4-4 UNIQUE PROPERTY APPRAISALS
Appraisers are sometimes faced with unique properties: a log
home, an extra small home, lower than normal ceiling heights,
etc. Eligibility of these properties depends on whether or not
the property is structurally sound and readily marketable. If a
property meets these criteria, the appraiser estimates market
value. However, depending on the uniqueness of a property, the
final determination to accept or reject the property is made by
the lending institution's underwriter.
Excess land is another area in which to exercise caution. Land
is considered to be excess if it is:
o larger than what is typical in the neighborhood
AND
o capable of a separate use
o If there is excess land, describe it but do not value it.
In this instance, the appraisal is based upon a hypothetical
condition. A legal description of the portion being ​

appraised is required.