Fannie Mae and "Multiple Parcels"

[djd09]

Once it was just factual data, now there may be data inaccuracies.

The SOW rule states the appraiser "must not allow assignment conditions to limit the scope of work to such a degree that the assignment results are not credible in the context of the intended use. "

 

[Carnivore]

In this thread Topic discussion is albeit a little disheveled and repetitious are good lessons and information on the broader scale of HBU in general.

The most profound statement and I quote George H "I keep saying this: the more accurate default on the situation of the 2-lot assemblage in general isn't "never" but it also isn't "always".

If you go all the way back to Post #1 and focus on that... You see what the problem is.

 

[George Hatch]

Once it was just factual data, now there may be data inaccuracies.

The SOW rule states the appraiser "must not allow assignment conditions to limit the scope of work to such a degree that the assignment results are not credible in the context of the intended use. "

That's 100% right, and if the appraiser has reason to suspect that data is too unreliable to use then they shouldn't use it.

OTOH, if you as a reviewer or critic is going to allege that no reasonable person would have relied on that data due to inaccuracies then the burden of proof rests with you to prove that case, not with the appraiser to prove the negative.

So if the inspection returns a GLA of 2000sf and public records reports it at 2000sf and an MLS listing or two reports it as 2000sf then you as the critic are going to have a hard time saying no reasonable appraiser would have relied on any of them so therefore the appraiser should have withdrawn from the assignment.

 

[George Hatch]

I stand corrected on zoning, the listing agent said approved for SFR but I must have misunderstood.

The vacant and improved lots on Garfield are really small for this neighborhood. If you build another house, both would feel really cramped with minimal yard. The appeal would be more of a family compound situation, which is exactly how the agent worded the Walnut listing. Someday if/when there is more development pressure, selling them off separately might be a really good call. For the foreseeable future there are plenty of nice buildable lots to be had in this area. Like you said-

If there is sluggish/ low demand for vacant lots, then for that build able lot a HBU today may be interim use hold for future appreciation.

That's sometimes the case. And as noted above, sometimes the values and marketability are so low that the extra lot has about the same value when used as a lawn instead of being developed.

If I'm appraising a property then I'm checking the source data itself.

The lot area on Garfield is ~7500sf; that isn't substandard for the neighborhood. The net usable may be smaller than average, but then again if the design of the house has them sharing the driveway then it may not reduce the utility of the lot after all - it somewhat depends on the design: access the garage from a separate driveway to the street or from the same driveway?

Appraising land isn't like appraising houses. The datasets are much smaller so you are compelled to make more compromises in terms of what is and isn't comparable. So while you may be accustomed to looking for model matches for your house you usually can't expect to draw your search parameters so tightly for any other property type.

Depending on what type of property I'm appraising I'm usually dealing with datasets that are so small and so dissimilar in the variable that it would make you cry. Nevertheless, I still have to take what i can get and figure out how to conclude to a value. That's why the minor variances to which you are referring don't really phase me. They mean something, alright; but it's still a very doable valuation.

 

[djd09]

blah blah blah. year 3 of 3. time to shut up or put up.

my ambulance chasers are getting itchy.

 

[George Hatch]

Hopefully they weren't educated in a cave.

You can kneel before the icon and chant 1000x a day that "There is only one appraisal under the skies and the 1004 is it's name. Blessed be the 1004" but that's not going to make it so.

 

[Andrei Fin]

The lot area on Garfield is ~7500sf; that isn't substandard for the neighborhood. The net usable may be smaller than average, but then again if the design of the house has them sharing the driveway then it may not reduce the utility of the lot after all - it somewhat depends on the design: access the garage from a separate driveway to the street or from the same driveway?

Well I asked this before and you skipped over it, might as well try again. Why do you think the vacant parcel on Garfield still not developed today after three different owners since 1992?

 

[George Hatch]

Oh, you actually don't know? For the same reason there are still other vacant land parcels selling in town.

You need to look around at different market segments more. There are vacant land sales occurring even in the urban areas like San Francisco itself. That doesn't mean they are more valuable as lawns than they are as a buildable site.

 

[Andrei Fin]

Oh, you actually don't know? For the same reason there are still other vacant land parcels selling in town.

You need to look around at different market segments more. There are vacant land sales occurring even in the urban areas like San Francisco itself. That doesn't mean they are more valuable as lawns than they are as a buildable site.

We're not talking about most profitable, we've agreed on HBU. Now we're talking about most probable.

 

[djd09]

You can kneel before the icon and chant 1000x a day that "There is only one appraisal under the skies and the 1004 is it's name. Blessed be the 1004" but that's not going to make it so.

comical. putting words in my mouth again. gee wally the check box on the 1004p looks like a check box on a 1004. carry on, clear capital.