Extraordinary Assumptions / Where To Put In Report

[Deleted member 130081]

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.

Whoa there partner! This is far from an extra-ordinary assumption!!! Note the "extra" ordinary for starters. Then consider that you have not made an assumption at all, rather have calculated a reasonably accurate measurement, based on a reasonably reliable source! Appraisal does not have to be so perfect!!! Unless you have reason to believe the GIS is inaccurate in terms of defining the site boundaries, the GIS measurement you made will be quite adequate for appraisal purposes. In fact, going to the GIS and measuring for yourself instead of simply taking the assessor measurement at face value is prudent appraisal - pat yourself on the back and file this one as done. What I do is take a screen shot of my GIS measurement, effectively showing the calculation as a verification of assessor data - then I use the assessor data, unless the assessor data is proven to be significantly off.

All said, while GIS is awesome, it can be in error sometimes. Sometimes this will not be readily evident with clues, but most often it is. If you really want to be 100% sure every time, dig into the legal description and plot/verify the boundaries (have fun with that).

Does your market really require adjustment for differences of a couple hundred or even thousand feet of site? I only find this level of refinement needed on super small city lots. I generally find little to no difference in larger sites. Most buyers don't sit there and say, gee, this lot has 23000 sf and the other one has 24000 sf, I better adjust my offering price! Most buyers say, the lot is small or the lot is large or the lot is just fine!!! Just because the stupid grid requires you report these sorts of differences in terms of sf or acres or whatever doesn't mean the market gives a crap or looks at it the way the form is formatted.

 

[Deleted member 130081]

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.

PS - Go ahead and cite your source for site data reported (meaning your GIS calculation) if you think this is worth fretting over. That way, your report is accurate according to your cited source. Your pre-printed certs already disclose you have relied on sources you believe to be accurate, so you don't need to say that again in the comment.

To your original question, I don't know of any pre-printed form that doesn't allow for you to check a box when an EA or HC is used, it should be in the reconciliation. Most forms also provide space there to explain your EA or HC - if not, put it in your addenda comments. The important thing is to remember to do it if you have to and NOT to do it if you haven't done it!!!! This is why lots of CE stresses the issue, as appraisers often get confused about which is what and when.

I just used one today, where I made an extraordinary assumption that the second unit of a duplex, which I did not inspect, was the same as the unit I did inspect.

EA = something you do not know for sure
HC = something you know to be true, but pretend is something different than what you know

Remember we make assumptions about all sorts of stuff all the time in appraisal, the difference is when you make an Extraordinary assumption.

 

[Tim The Enchanter]

I'd put the comments in the site section, and copy paste them into the addendum as well to make it harder to miss.

 

[Tony V]

I'd put the comments in the site section, and copy paste them into the addendum as well to make it harder to miss.

THIS ^^^^^^^^^^^^....also bold them...

 

[JTip]

The deed has the answer....duh....

http://tractplotter.com/

 

[Terrel L. Shields]

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

You can state the EA anywhere per USPAP, but the GSE's may differ. If you have a legal description metes & bounds then you can calculate - there are online survey modules. If lots, go to the court house. Look for the original plats.

 

[Sid Holderly]

Most deeds in this area do not have dimensions for lots. Old plat maps are often not readable. Irregularly shaped lots are given an approximated width and depth on the assessor card, some just give an approximated acreage. Those dimensions often stay with the property forever even after slivers & corners have been removed for roads/ditches/municipal uses on one or more occasions over the past 100 years. Finding takings and small split offs often would cost more than the appraisal fee. Often the site estimated from an aerial is the best that is available for the purpose at hand. State your source. Make size adjustment value differences on a marginal basis, like only if more than xx% different than the subject.

For the AMC's & lenders that want actual dimensions of nonrectangular properties on the URAR form charge more. Sometimes the detail they want is not possible to supply. For the following example giving all the sides would not be practical: Lot 4 plus s/w lot 3 plus N20' of the PT N NW SW E/E pt of 25-12-3 and 1/7 of subdivision Q Tract B the common areas (these are roads and water access avenues to non-waterfront lots) For these highlighting the parcels on an aerial explains a lot more than 5 pages of legal description that probably is not available for all of the parcels. I have run into several descriptions like this over the past 25 years. Just hope it is a local lender that ordered the appraisal.

We are not title researchers or surveyors. Define what you are talking about so someone else would understand it.