Extraordinary Assumptions / Where To Put In Report

[jnjappraisal]

What is the correct way to make an extraordinary assumption? Where do I want these comments to be sure to appear in the report?

 

[residentialguy]

You mean on the FNMA form that states you can't change the assumptions unless you check box 4 at the end, making it subject to inspection?

 

[jnjappraisal]

I have a property where the site is irregular shaped. The Assessor does NOT have square footage for this lot (leading me to ask, how the hell did you value the lot with no square footage? .... still waiting for an answer on that but am betting I won't get one). I have called everyone that should have this information and the County says I have to get it from the Assessor, the Assessor says get it from the County... long story short, I need to get the site square footage in order to complete the report (OBV). I can go on the GIS and get an "estimate" but then I'd be making the assumption that it is correct in the report. How would I document such a thing? There are times when we have done everything we can to get the info we need but you can't keep delaying the completion of the report.

 

[Peter LeQuire]

So, don't you check the box, provide a brief statement about what the EA is in the reconciliation section, then go somewhere else on the report to thoroughly explain what the EA is? I would tend to explain it in the 3 line reconciliation space above, or if that space is not adequate, at the bottom of the Summary of the Sales Comparison Approach above (the comments on the SCA having already been overflowed to a text addendum). That's because one of the fogies I took my first appraisal courses taught that such assumptions or hypotheticals should be as near the appraisal result as possible, and next to the appraisal result every time that result appeared (like in a cover letter, or title page.

 

[J Grant]

If lender can't get you a survey, go back and measure the lot...even an irregular lot can be measured and an estimate of sf made from the measurements..then note the efforts you made to get records, that the sf is from measuring, that you are not a surveyor and lot sf may differ slightly from a survey but the sf is close enough to credibly complete the appraisal.

Is the lot on an overhead aerial map? So many map services avail now and some even have measuring tools...you can virtually measure a lot online off an overhead map in some cases (I am lucky our county property appraiser office offers this feature)

http://everydaycalculation.com/land-area.php

other tools online (and I stink at math even I can do it )

 

[Peter LeQuire]

...or, if the deed has a metes and bounds description, the sketching app in several appraisal software packages will calculate site size. The service here that provides access to public records has a tool that will allow calculation of site size: though not particularly accurate, it's adequate for appraising a residential building site. Or, if you get desperate, you can get graph paper on an acetate sheet which, knowing the scale of the tax map, would allow you to calculate the site size.

 

[jnjappraisal]

If lender can't get you a survey, go back and measure the lot...even an irregular lot can be measured and an estimate of sf made from the measurements..then note the efforts you made to get records, that the sf is from measuring, that you are not a surveyor and lot sf may differ slightly from a survey but the sf is close enough to credibly complete the appraisal.

Is the lot on an overhead aerial map? So many map services avail now and some even have measuring tools...you can virtually measure a lot online off an overhead map in some cases (I am lucky our county property appraiser office offers this feature)

http://everydaycalculation.com/land-area.php

other tools online (and I stink at math even I can do it )

Yes, as stated, I can measure it using GIS and that would likely be more correct than my physically measuring the lot. I am just aware that GIS is not always completely accurate. It is actually written into the offer that the owner must have a surveyor identify the lot corners so the Lender is letting me know if there is a survey completed yet. I am just curious how to proceed without this exact information.. you would be making an assumption that the GIS is correct.

 

[J Grant]

No, I would not make the assumption that the GIS is "correct"..

I'd write something along the lines that peers (us !! ), recognize a method such as GIS can be used in an appraisal when a survey is not available or when public records does not list the site size,
and that you believe the approximate site size from your using the GIS is reasonable enough for appraisal purposes ; that any minor variances from a survey lot size would not materially affect the market value opinion.

 

[Howard Klahr]

how the hell did you value the lot with no square footage?

As you already know I'm sure, USPAP, requires you to adequately identify the property and that would include the size. In your case I assume you have the legal description. If it is lot and block you can look up the plat in public records. If it's metes and bounds you already have what you need. Either way the info is available to you to figure out the answer to your question. All without an EA

 

[J Grant]

I physically measured a lot several weeks ago (long story why it was not available online or aerial to measure), I did have someone help me hold the tape ( the RE agent)...it was kind of fun to walk the land
and measure...had not done it in a long time ( wear sneakers lol)