Exterior farm debris

[Mark K]

What is valued depends on what the subject of the appraisal is. If the subject includes personal property, it should be addressed in the valuation, and the value of the personal property needs to be stated.

If you want to split hairs, the real estate interest being appraised is the legal description of the land. I've never seen an appraisal order say anything about a house.

However, appraisers usually include the improvements (house), land improvements including the driveway, sidewalks, landscaping, wells, septic systems, sheds, etc. If a house is lacking any landscaping or lawn in an area with most houses have nice lawns/landscaping, do you ignore the lack thereof? If not, you also cannot (should not) ignore an inordinate amount of junk that could likely cost thousands of $$ to remove, i.e., unless all of your comps are also junkyards.

 

[TerryRohrer]

If you want to split hairs, the real estate interest being appraised is the legal description of the land. I've never seen an appraisal order say anything about a house.

However, appraisers usually include the improvements (house), land improvements including the driveway, sidewalks, landscaping, wells, septic systems, sheds, etc. If a house is lacking any landscaping or lawn in an area with most houses have nice lawns/landscaping, do you ignore the lack thereof? If not, you also cannot (should not) ignore an inordinate amount of junk that could likely cost thousands of $$ to remove, i.e., unless all of your comps are also junkyards.

Here, the land and anything attached to it is real property, so your house and site improvements examples are worthy of Fernando. Personal property not attached to the land is personal property and not part of the real property. Consequently, sales involving comparable real property are comps, regardless of personal property resting on them. I know you and Fernando can adjust your opinion of the value of the real property based on the brand of car in the driveway, but I don't.

When I appraise farms, I have no trouble distinguishing cows, horses, and all other classes of livestock, and machinery, equipment and vehicles, from the real property. If they want the personal property valued, it is done for an additional fee in a different report.

 

[BRCJR]

External obsolescence

 

[Dublin ohio]

Point it out. Recommend an environmental assessment. Assume that the value could change if there are environmental issues. Assert you are not an environmental expert. Are refrig doors taken off? safety hazard. etc. Finally, say the value is contingent upon the property not being impacted by the junk.

Throw the lender into a tizzy. Recommend a phase 1 environmental.

 

[glenn walker]

And we wonder why lenders are going to waivers. It's a farm not a condo in a Hoa community. Lol

 

[glenn walker]

It's a refinance ? That junk may be valuable look to see if any old muscle cars are laying around. Lol

 

[Terrel L. Shields]

It's a farm not a condo in a Hoa community.

In the pre-Great Recession, an appraiser / Realtor was sanctioned for not mentioning and adjusting for several abandoned automobiles on a rural property south of Fayetteville. He was nearing retirement and ended up losing money as well when a bank demanded his daughter pony up more money after the duplex he co-signed with her, and they didn't have enough money. The duplexes here fell about 50% in value and she had bought at the peak market.

 

[Tom D]

A picture would have been nice. But doubtful, that the usual 50/50% good/bad opinions would have changed. But pictures and some discussion does put it on the underwriter to decide.
But it doesn't affect the marketability of the subject, some of you say. I will say i am more easy on refi than sale, or pre foreclosure. FHA wants it all gone.

 

[sputnam]

The property I'm appraising is littered with an extraordinary amount of old broken down boats, old appliances, piles of broken farm equipment/junk metal, etc -decades of accumulation all around the outbuildings & yard. I know it's all personal property but the lender will have to pay to remove it, if foreclosed. I'm concluding towards the lower end of the adjusted range to account for this, but I'm struggling with how to carefully word it. Can anyone help or advise otherwise? Thanks!

If you want to do it that way... just say what you said in your reconciliation comments. Something like, 'Due to the debris on the subject property, the opinion of value has been reconciled closer to the lower end of the indicated range.'

A better way would be to get an estimate of the cost to clean up the property and incorporate that as an adjustment.

 

[Tom D]

If you want to do it that way... just say what you said in your reconciliation comments. Something like, 'Due to the debris on the subject property, the opinion of value has been reconciled closer to the lower end of the indicated range.'

This comment may bring this stip. Did any of the comps have a similar external deficiency. Would the lower end be more lower if you adjusted for adverse marketability. I think a cost to cure adjustment might be better. A requirement? Let the underwriter make them do it. I see a similar comp request stip, or adjust for it, if it is a negative factor. Or say it has no affect on value or marketability, hahahaha. If you have to say a required item to do, then does that change your as is value . Being paid enough for this one.