Fannie Mae and "Multiple Parcels"

[Andrei Fin]

3/4 of those elements are not part of an HBU analysis, and neither is the 4th if/when the appraiser skips its consideration.

There's nowhere outside of FannieWorld where this discussion would even take place.

Everyone including Fannie already agrees that the HBU is not the current use, so that's irrelevant. And this would still come up regardless, because these are almost always purchases and the second parcel is written into the contract, so you would be forced to address it whether or not the appraisal is going to the secondary market.

 

[Carnivore]

Considering that some may respond to that news letter directly to FNMA. Also considering that you may respond to FNMA and Include Your State Appraisal Board. It may take awhile before you actually take any action to send the information

Something that's important dependent on the Date of you Letter to either one of those organizations:

The year end is fast Approaching.

For your reference. This is the location of the two FAQ's in the 2020 USPAP

Value in Use FAQ is 188 Page 266

Appraising Two Lots FAQ 223 Page 280

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What I should Do!

1. Do I ignore fee quotes or just decline or submit something they won't accept anyway

BUT IF THEY DID:

2. How I would organize Standard one - That should not be to hard

1. What documentation would be needed. - Again that would not be to hard

3 What processes/analysis I would have to complete. I think I have a handle on that

Finally

4. How do I overcome the forms deficiencies;

4A. without causing Pandemonium and mass hysteria at AMC Phone Monkey Dot Com


Elvis has left the Building

 

[J Grant]

I was never interested enough to follow each outcome, but on my MLS, a number of times when I am researching houses for comps, I will seen on the MLS listing for a house: "Can be purchased alone or with the adjacent lot for X $, opportunity knocks " ( that kind of verbiage)"

Then I will see on MLS when researching land , " Lot can be purchased alone or with the adjacent house, create your own mini estate "

These transactions are not a large part of the market but they may happen enough to get data on it and certainly talking to agents esp those who sell land in area is a source of info.

 

[George Hatch]

Everyone including Fannie already agrees that the HBU is not the current use, so that's irrelevant. And this would still come up regardless, because these are almost always purchases and the second parcel is written into the contract, so you would be forced to address it whether or not the appraisal is going to the secondary market.

I disagree that the current use cannot be the HBU - I know for a fact that it can be under certain circumstances. That's why I always look and why I never assume. I cannot know in advance if the current use is or isn't the HBU. That's an opinion to be developed, not an assumption to make. I can't tell what's typical for the neighborhood or the market segment until I look to see what the data says.

The one thing I do know is that proceeding solely on an assumption or per what any user thinks is "acceptable" is no substitute for forming an opinion of HBU. Especially not when it's so easy to simply do that analysis.

 

[J Grant]

Home on Kay Street and adjacent lot sell for $2.395 million - What's Up Newp

- Advertisement -Lila Delman Real Estate today announced the sales of 27 Kay Street & 0 Kay Street in Newport for a combined $2,395,000. Lila Delman Sales Associates Alex Thursby and George Tollefson represented the seller, according to Lila Delman Real Estate “Where some see challenges with...

whatsupnewp.com

809 Shelokum Dr, Silverton, OR 97381 - See Est. Value, Schools & More

809 Shelokum Dr, Silverton, OR 97381 was sold in 809 Shelokum Dr, Silverton, OR 97381. See the estimate, review home details, and search for homes nearby.

www.trulia.com

found on quick online search....note the meager discount offered for buying both in listing # 2, which is not that different from a normal list to sell discount...a seller unless desperate for money is not going to give the lot ( or the house ) away cheap just to get them sold in one transaction. Of course each transaction and market is different.
But both of the above are not that different from the listings I see on my MLS -not giving the lot away cheap just to get it sold with the house.

 

[Econobot]

172. VALUE IN USE REQUEST FROM FEDERALLY REGULATED LENDER
Question: My client, a federally insured financial institution, has asked me to provide a value in use appraisal instead of a market value appraisal. May I do this?
Response: USPAP does not dictate the use of any specific type or definition of value. The type and definition of value must be appropriate for the intended use and intended users. For federally related transactions, federally insured financial institutions require an opinion of market value, as defined by regulations. Therefore, if you provide a value in use, you may also have to provide a market value, depending on the intended use.

Round and round we go.....

 

[J Grant]

172. VALUE IN USE REQUEST FROM FEDERALLY REGULATED LENDER
Question: My client, a federally insured financial institution, has asked me to provide a value in use appraisal instead of a market value appraisal. May I do this?
Response: USPAP does not dictate the use of any specific type or definition of value. The type and definition of value must be appropriate for the intended use and intended users. For federally related transactions, federally insured financial institutions require an opinion of market value, as defined by regulations. Therefore, if you provide a value in use, you may also have to provide a market value, depending on the intended use.

Round and round we go.....

The opinion of market value is the value opined for the entire property ( the improvement conveyed with the lot for the whole ) Got it? So there is no conflict. There is one market value opinion.,

A value in use is for the vacant lot portion only, to address its contribution to the whole.

 

[nstanbru]

In the city of Huntington Beach they have blocks and blocks of properties that were originally mapped in the 1920s with 25ft wide lots, many of which were joined to create 50ft wide parcels. In that jurisdiction a property owner can buy one of those 50ft or 75ft parcels with the existing SFR and build 3 detached homes on them without going through any lot split process because those lots were already mapped that way.

If multiple lots have a single APN (which is very common in Old Town), a parcel split would be needed (creating individual APNs for each lot) in order to sell each newly developed property.

 

[Lee Lansford]

The opinion of market value is the value opined for the entire property ( the improvement conveyed with the lot for the whole ) Got it? So there is no conflict. There is one market value opinion.,

A value in use is for the vacant lot portion only, to address its contribution to the whole.

Incredible.

That means "not worthy of belief".

 

[J Grant]

Incredible.

That means "not worthy of belief".

Really? That is what fannie said and I see no conflict with that and USPAP. You simply lack a credible defense at this point, so now you are resorting to stupid personal stuff. Defend your position, why can there NOT be a single market value opinion for two properties conveyed together? Appraisals do it in multiple property valuations and nothing in USPAP prohibits it.