FHA Excess Land, Which site size in the grid

[J Grant]

you could make an adjustment for view, father away from your neighbor. this big city, it's all about closeness or not closeness, if you can have that choice.
we can all say what FHA wants, but it is a case of stupid. anyone here thinks we really should ignore that lot, if there was no FHA rule.

We are not ignoring the lot.
We are following an HC as instructed by FHA and we explain that in the report.
Making an adjustment for view/further away from another house? If the HC lot being appraised is just the primary lot then that would not be the case.

 

[glenn walker]

Excess or Surplus ? This is where many screw up. I recommend that some may want to consider invoking both a Hypothetical and a Extraordinary Assumption so the right one will over rule or wash out the wrong one. My guess is there is a ton of reports out there where the appraiser had no idea if it was excess or surplus. Just saying LOL

 

[ZZGAMAZZ]

If it's excess or surplus land that is included in the appraisal, the entire size goes in the grid. If, after consultation with the Client you are appraising a physical segment, only the portion you are including in the appraisal is included.

As Glenn indicated, the site adjustment shouldn't ever just be about size. It should reflect all value related differences attributable to the site.

Aside from the surplus/excess dichotomy, if the subject lot is less than fully functional, what do you think about reporting adjustments as a Functional Utility line item?

 

[NC Appraising]

https://www.HUD.gov/sites/dfiles/SFH/documents/2022_appraisal_policies_principles_practices.pdf

If the subject of an appraisal contains two or more legally conforming platted lots under one legal description and ownership, and the second vacant lot is capable of being divided and/or developed as a separate parcel where such a division will not result in a non-conformity in zoning regulations for the remaining improved lot, the second vacant lot is Excess Land. • The value of the second lot must be excluded from the final value conclusion of the appraisal and the Appraiser must provide a value of only the principal site and improvements under a hypothetical condition.

Send them a email. A HUD appraiser will respond. Come back here and tell us what they said.
answers@HUD.gov
For further assistance please contact the FHA Resource Center by sending an email to answers@HUD.gov, calling1-800-CALL-FHA (1-800-225-5342) from 8am to 8pm EST, or visiting our online knowledge base at www.HUD.gov/answers (24 hours / 7 days a week).

 

[ZZGAMAZZ]

Excess or Surplus ? This is where many screw up. I recommend that some may want to consider invoking both a Hypothetical and a Extraordinary Assumption so the right one will over rule or wash out the wrong one. My guess is there is a ton of reports out there where the appraiser had no idea if it was excess or surplus. Just saying LOL

Well, I'm glad you mentioned that protocol. NOW you FINALLLY understand my approach to ALL appraisal issues--one correct approach and one incorrect approach, or sometimes two or three of the latter. I knew would you eventually understand me !!!!!!!! LOL LOL LOL

 

[ZZGAMAZZ]

https://www.HUD.gov/sites/dfiles/SFH/documents/2022_appraisal_policies_principles_practices.pdf

If the subject of an appraisal contains two or more legally conforming platted lots under one legal description and ownership, and the second vacant lot is capable of being divided and/or developed as a separate parcel where such a division will not result in a non-conformity in zoning regulations for the remaining improved lot, the second vacant lot is Excess Land. • The value of the second lot must be excluded from the final value conclusion of the appraisal and the Appraiser must provide a value of only the principal site and improvements under a hypothetical condition.

Send them a email. A HUD appraiser will respond. Come back here and tell us what they said.
answers@HUD.gov
For further assistance please contact the FHA Resource Center by sending an email to answers@HUD.gov, calling1-800-CALL-FHA (1-800-225-5342) from 8am to 8pm EST, or visiting our online knowledge base at www.HUD.gov/answers (24 hours / 7 days a week).

The info is interesting and helpful especially if the exact same protocol pertains to a single-parcel analysis.

The HUD email address is great to know.

Now on a practical basis,

1) Does one report the total area of of both parcels in the SCA grid, or just the area of the parcel being valued?

2) Does one attempt to bracket the diminished lot size that is not-excess?

3) Is the Opinion of Site Value in the CA based upon only the portion of the lot being valued?

4) Is a HC required because the appraiser knows that he or she is reporting a fact contrary to reality?

5) Presuming that HUD is indeed the client of an FHA assignment, why do appraisers give carte blanche approval to allow this client to dictate our SoW? Is it because the only alternative would be to turn down a FHA assigment, like we can do if any client requirements aren't acceptable? Although the FHA Case# must be reported on every page, do peers write a specific boilerplate narrative that addresses the FHA Engagement protocol? If so, in what section should it be included?

 

[glenn walker]

Aside from the surplus/excess dichotomy, if the subject lot is less than fully functional, what do you think about reporting adjustments as a Functional Utility line item?

I see a Rabbit Trail- to Appraiser Hell LOL

 

[ZZGAMAZZ]

I see a Rabbit Trail- to Appraiser Hell LOL

Plase take this into consideration, sir....I recently took a small step into the knarly world of "Sugar Relationships" that is a HUGE market throughout Orange County. There cannot be any Hell more sinister than the baseline protocol, although IMO it's weird that nobody seems to question how it's different than downright prostitution. Man, the sad tale(s) I can tell after less than two months in the Sugarbowl. And the world needs to know that I [me] am the one damn, stupid, illogical guy who actually fell in love with his brand-new SB after 15 minutes of the first public date! That I was able to survive that experience--emotionally & physically & [especially] financially--qualifies me for ANYTHING I might face during the rest of my life.

 

[glenn walker]

Plase take this into consideration, sir....I recently took a small step into the knarly world of "Sugar Relationships" that is a HUGE market throughout Orange County. There cannot be any Hell more sinister than the baseline protocol, although IMO it's weird that nobody seems to question how it's different than downright prostitution. Man, the sad tale(s) I can tell after less than two months in the Sugarbowl. And the world needs to know that I [me] am the one damn, stupid, illogical guy who actually fell in love with his brand-new SB after 15 minutes of the first public date! That I was able to survive that experience--emotionally & physically & [especially] financially--qualifies me for ANYTHING I might face during the rest of my life.

No offense but at your age you are a Prime target for opportunist women and the Ornamentals
as Billy called them . They prey on old White Men - Many are Evil and will drain you emotionally, financially and some may even murder you.

Think with your Big Head not the small one. Too bad Uncle Billy was dead as he was a expert on how to get rolled by young hot Asian women and he died broke living in my back bedroom. Myself and Pops warned him when he was about 65 years old to wise up- but he did not and the last one cleaned his clock good and it was over.

 

[NC Appraising]

The info is interesting and helpful especially if the exact same protocol pertains to a single-parcel analysis.

The HUD email address is great to know.

Now on a practical basis,

1) Does one report the total area of of both parcels in the SCA grid, or just the area of the parcel being valued?

2) Does one attempt to bracket the diminished lot size that is not-excess?

3) Is the Opinion of Site Value in the CA based upon only the portion of the lot being valued?

4) Is a HC required because the appraiser knows that he or she is reporting a fact contrary to reality?

5) Presuming that HUD is indeed the client of an FHA assignment, why do appraisers give carte blanche approval to allow this client to dictate our SoW? Is it because the only alternative would be to turn down a FHA assigment, like we can do if any client requirements aren't acceptable? Although the FHA Case# must be reported on every page, do peers write a specific boilerplate narrative that addresses the FHA Engagement protocol? If so, in what section should it be included?

I dunno.

Copy and paste those questions to HUD and report back? Same for the OP. I do it all of the time. I even copy and paste their response in my appraisal report or the phone number and the person at HUD that I spoke with.

As for the scope of work....it is a two way street. IRS....estate dod....VA.....fannie, USDA. Get the point.

USDA use to have a inground pool policy where the appraiser could not give any value to the pool. OK, not a big deal.

If I called you up as a private individual wanting an appraisal and I wanted you to exclude the inground pool, what is the big deal? Decline the assignment because I am dictating the SOW? I am planning to fill the pool in with dirt because I hate pools, but I need an appraisal now for personal reasons.